Using Big Data to Understand Customers
With Big Data, you can become customer-centric in ways you never could before. You can go beyond transactional reports about customer buying habits and drill down to customer sentiment and motivation.
Companies today have the opportunity to "know" each customer's individual habits. Instead of creating artificial groups of customers who may have some similar interests, businesses can effectively segment and customize their offers to each customer. By knowing customers' habits, companies can not only target niches more accurately, but also uncover new markets for their goods, understand customer needs more fully, and extend well-timed special offers.
Here are three major benefits of using Big Data to understand your customers:
Customer satisfaction: You can create fans who are loyal and who speak about your products to others on social media. This situation creates a sales force that money can't buy.
More money per customer: Offering just the right product at the right time increases buying.
Retention: You keep customers longer by showing them that you understand their needs and can provide them products that meet those needs.
Companies that use Big Data can extract value in several new ways. The following key factors shed light on why companies believe that Big Data presents such a great opportunity:
New tools are available. You can use the tools that are now available to analyze this new data in near real time. These tools include data sensors that collect massive amounts of information about how machines and electronics are performing.
New insights are possible. Being able to analyze the data provides the capability to extract major insights that can increase profits.
New types of data are being generated. Some of social data deals with customer sentiment, which is invaluable to companies. Customer sentiment data lets companies know what offers will succeed because they learn how customers talk about and review their products.
New developments make cloud storage a reality. Warehousing data is less an issue now that businesses can use cloud storage, which is cheaper and just as accessible.