Data is being deemed the new commodity of the 21st century. By way of technical innovations, this can be processed within seconds and also in real time. Big data is gaining more and more influence, especially in marketing decisions. Used efficiently, data can not only predict the purchasing behaviour of customers, but also optimally adapt the shopping experience to every online shop visitor. The attention of customers is generated by personal, individually tailored content, such as the optimal product. So-called data-driven marketing, or data-based marketing, makes it possible to filter out the valuable information from huge amounts of data and to incorporate this into planning.
Volker Wiewer, International Vice President of Teradata eCircle, is also following this change: “There is currently a paradigm shift occurring in the minds and budgets of marketers all across Europe. Data-based marketing is changing their worlds”.
Until recently, only major international companies were able to access big data, whereas today this possibility is open to virtually all companies of various sizes. In today’s article, we will show you how you can master the challenges of data-driven marketing and the advantages to you that arise from it.
Challenges in data-driven marketing
The biggest challenges of data-driven marketing are perceived by 90 percent of all marketing managers in two areas: In a huge time expenditure and in a lack of expert knowledge in the handling of data volumes. Only a small section of retailers use the potentials of data-driven marketing.
There is still a large number of marketing professionals facing the issue of big data with scepticism and perplexity. This was also the conclusion of a study by the Vivaldi Partners management consultancy, which shows just what German SMEs are lacking: They do not grasp the opportunity of improving customer contact by digital methods. Instead, the customer shifts out of sight and the service platforms fall to global players like Google or Facebook. Only 55 percent of respondents in the study said that the impulse for new methods arose internally within the company. Additionally, some 64 percent feel themselves under pressure from competitors.
Success factor in data-driven marketing
What are the advantages to you in using data-driven marketing?
A study by Teradata eCircle from 2013 shows that effective data analysis today represents a success factor for the operation of an online shop. The results show that the satisfaction of marketing managers with their own work increases as their ability to make decisions based upon data improves.
The adaptation of advertising campaigns by algorithms and artificial intelligence enables the automation of preconceived marketing campaigns and implements them personalised towards individual shop visitors. This then allows you to focus again on the strategic planning and creative ideas behind your marketing. The individualised approach to your customers and measurement of your campaign successes, as well as a better assessment of market potentials, are just some of the advantages to mention at this point.
Essential are a big data strategy and the right technology to manage the data volumes and to use them efficiently. Suitable software offerings can help you to turn this into usable intelligent data.
The following is an introduction to the specific opportunities for you as a retailer to perform data-driven marketing.
Know your customers better through data-driven marketing
Modern technologies such as smartphones or networking over the Internet of Things provide valuable data that can be utilised purposefully. Business Intelligence systems not only collect and analyse data about customer usage habits, but also about their corresponding whereabouts or their level of interest. This can be used to provide the existing customer with relevant messages, such as mention of an appropriate product. New customers can also be won through predictive intelligence, which seeks out similar customers or reactivates customers contemplating migration away. A better insight into the quality of your customer relationships allows you to personalise your marketing campaigns and to correctly address your target groups.
Optimise your prices with big data strategies
Retailers and manufacturers expect prices on their products that increase profit, whereas customers seek the optimal value for money. The price is still the primary buying incentive and signals quality as well as distinction from competitors. Because in eCommerce customers can arrive in the next shop with just a few clicks, they can migrate faster towards the competition. Since they cannot handle products, but only see them on a monitor, customers do not form a direct bond to the product. This is where market and competitor analyses using big data prove helpful. Predictive analyses make the market and prices transparent to retailers, in order to adjust prices and product ranges. At the same time, they offer the customer variety and products according to their individual preferences.
How to make your way through the data jungle: Since these useful data volumes must not only be collected, but also analysed and evaluated, an intelligent software solution such as blackbee stands available. The key to revenue increase is to implement an intelligent price management. The data collected by the software provides information on past sales as well as competitor prices, and offers you the opportunity of successful price optimisation.
Would you like to know how to optimally adapt your prices to the current market? Test blackbee now and convince yourself of the advantages behind our award-winning Business Intelligence Suite.