Increasingly Big Data can influence a companies decisions on a daily basis in relation to it's CRM activity. As the name infers Big Data can be just that - Big - however one should always consider that it’s not the amount of data that’s important, but what companies do with the data that matters. Big data can be analysed for insights and upcoming trends which can lead to planned strategic moves.
External factors that can influential your CRM strategy:
Weather – changes in weather patterns - how does this effect customer demand
Politics – changes in a leadership and policies e.g. Political elections and Brexit
Demographics – changes in the demographic can influence localised campaigns and products
Technology – upcoming new technologies and how they will effect a company
Advantages of using Big Data:
An increasing amount of it is easily accessible
A number of data sources are now free open sources e.g. census
CRM applications can be joined with many of the data sources to help you identify trends
When used correctly Big data can be predicative and less reactive
Real time customer service notifications e.g. car sensors notifying of any potential faults or maintenance
Disadvantages of using Big Data
With Big Data you need to separate the wheat from the chaff, i.e. there is a lot of data which is not necessarily important for your business.
Big Data can have privacy problems, which can be seen for example, from the analysis of social networks creating a ‘Big Brother’ type effect.
Issues with low security, Big data can be openly available in the cloud so not always be as secure as on-site data warehouse
Working practices will need to change to accommodate continuous big data insights e.g. from receiving weekly product sales figures to receiving them multiple times a day
You cannot use big data effectively if you don’t have in place a finely tuned single customer view
In terms of the day to day application of such data Acteol have used Big Data in areas such as weather to inform customers, who purchased train tickets what the weather will be like upon their arrival at their destination. No human intervention is required, the process is fully automated by bringing together multiple data sources to create rich engaging content for customers.
In other areas we take data from the national census and by mapping this to a trade area and plotted competitor locations we are able to provide market penetration and latent demand modelling for our clients so they can manage their business performance more effectively.
Our main word of caution when it comes to the benefits and limitations of Big Data, is to always make you have a full understanding of your own data first. If not then adding more and more overlays will just muddy the water and potentially take in the wrong direction. When applied correctly you can almost adopt a clairvoyant like approach by making decisions which will be on ahead of the curve.
If you would like to hear more about how Atreemo can help you tap into Big Data, please don’t hesitate to contact us.