Data analytics, a technique that uncovers patterns in data, is evolving quickly. With data analytics, organizations can gain greater insight to internal processes, external conditions, markets, and customers. More than gaining business insights, it helps business in strategic planning as well as in acquiring predictive capabilities. According to experts, the key to increasing marketing ROI is data analytics. This means that you have to analyze the masses of data that you have and intelligently target your customers to boost customer engagement, retention and return on investment (ROI).
Increase Investment in Big Data Analytics
If you want to make use of Big Data efficiently, you have to ensure the right blend of manpower, processes, and technology and focus on the desired outcome. It starts with capturing data and processes related to your business. The information must be accurate, timely, and complete. Moreover, you should have well-organized processes in place to manage that information through its entire lifecycle, from data entry to validation, assimilation, preservation, analysis, and end of use.
You can increase return on investment by expanding the scope of your organization’s information processing, using advanced deployment options, and proper customer communication.
A Huawei sponsored report predicts that big data technology and services will grow at a CAGR of 26% in the next seven years - from $1.95B in 2013 to $9.83B in 2020.
Capturing Additional Data
Adding additional types of data into predictive models improves the accuracy of the model, and makes it effective in providing insights or predictions on specific business cases or challenges.
You have to collect information about customers at various locations and make use of to build predictive models. This can be done by combining it with different types of data such as free text, web behavior data, social media, or survey facts. Such enriched information makes prediction easier and more accurate for effective decision making. For example, looking into social media information helps uncover the reasons for satisfaction or dissatisfactions and helps you understand what people are saying about your product or services. Such web data can be combined with other data to build customer retention campaigns.
Expand the Scope of Data Analytics
To increase ROI, experts point out that it is necessary to increase the scope of data analytics to address various types of challenges. For example, telecommunication companies make use of the pattern matching capabilities of analytics to minimize customer attrition, identify the market sectors with greater customer acquisition capabilities, and to determine what promotional activities are necessary.
Datanami reports on a recent survey by IDG Enterprise which estimated that an average organization is measuring an average of 164 TB data. This figure is expected to increase by 76 percent, (to 289 TB) over the next 12 to 18 months. So by the end of 2014, nearly one third of the biggest enterprises will be working with a 1 PB dataset.
Firms that have implemented advanced big data analytics have shared their success stories. For instance, British Airways (BA) employed a KnowMe program that combined loyalty information with information on the online behavior and buying habits of 20 million BA customers to enhance customer centricity.
Insurance giant MetLife attained better understanding of customer behavior by adopting a program that quickly integrates disparate data and delivers a consolidated view of the customer, which has simplified claims research and customer service interactions.
Deployment
The analytical results should be deployed throughout your organization in every day decision making so as to automate the decision making process. You need to evaluate your deployment options and choose the best strategy. An integrated technical infrastructure is necessary to deploy the model between different departments and business units.
Proper Communication
Proper communication with your target audience is essential to make them aware about the product to improve the sales and ROI. It is better to communicate ideas about a product/service to the target group of customers, rather than expanding it across your entire customer base.
Making Data Analytics Work
Every transaction, event, or survey response often provides information on external conditions, internal operations and processes, and your customers. Processing this data and extracting useful information will enhance your predictive capabilities which can be used in planning and decision-making process, and in daily interactions. Using information effectively is undoubtedly the key to enhancing your bottom line.
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