Big Data in Digital Marketing and E-Commerce

Posted on

One of the most important roles of big data is in the business sector. As the world of business and technology develops, so does the role of big data, especially in business marketing. Lots of research methods are used by companies in an effort to improve marketing strategies to find out how consumers behave, what products are preferred by consumers, or market trends. Currently, “big data analytics” is one of the analytical methods that has often been discussed in marketing research methods.

In the digital era where everyone has internet access, the term “online business” is starting to run rampant because business is becoming easier to do anytime and anywhere, especially in the use of social media. Now, business people generally prefer to sell their products and services through social media rather than opening their own business outlets. This is due to the fact that the capital spent is much less, so that almost all business transactions currently occur online. This is where big data plays an important role in managing data from online transaction processes.

Big data includes data and information with a very large amount, variety and speed. The majority of stored data is unstructured data, such as text data, sound, images, videos and so on. This unstructured data cannot be processed or analyzed using statistical methods as usual, so big data has its own methods in the analysis process. Big data analytics not only has large-scale data capacity, but also high-speed. One platform that stores and processes big data that is scalable and reliable is Hadoop. Currently, only large and well-known companies are already utilizing big data technology, so it is hoped that other business people, especially those operating online, can also take advantage of big data technology so that their business can develop better.

In the world of marketing, big data also provides benefits for companies. Analysis of all data concerning the brand and its consumers both internally and externally, digitally and traditionally, can generate the necessary information to increase the effectiveness of the marketing strategy used. In a research conducted by McKinsey, companies that perform in-depth analysis of their data earn 126% higher profits than their competitors. In the process, analysis of big data affects the performance of marketing strategies from various sides. First, from big data we can gain a deeper understanding of consumer behavior, starting from audience demographics, habits, preferences, to post-transaction behavior. With this information, brands can benefit a lot.

Currently, marketers have evolved in how to communicate with consumers. There are various channels that can be used to grab market attention. It is impossible to use all of these channels, so here the presence of big data really helps marketers to choose which one is most appropriate to reach the audience. In addition, marketers can place ads with better results than before due to more targeted targeting and advertising materials that better suit consumer tastes. This performance increase will affect conversions that occur and funds that will become more efficient than before. In addition, the available data can also show what has been a problem for brands and provide solutions. Not only that, the existence of data on a large scale has also changed the way marketers work. In traditional marketing, it is not uncommon for campaign success to be difficult to ascertain with valid numbers. The presence of big data provides fresh air for these conditions. Especially in the digital marketing era, the success of the strategies that have been carried out can be calculated with a clear database and not based solely on speculation. Not only big brands, small brands can also benefit from this.

Benefits of using Big data for business

  • Get to know the customer better

Adopting a big data strategy entails gathering any and all data pertaining to a company’s customers. We can use this collection of information as a reference for us to understand consumers, so that we can be even better at providing products according to their needs and desires.

From the data collected in big data, we can see what the facts are like on the ground, what are the tendencies of our consumers, and what are their behaviors and activities like. A real fact and not just an assumption we make based on guesswork. Because sometimes the results of observations or a questionnaire distributed were not answered 100% correctly. Big data, however, will allow us to collect more reliable information about our customers’ actions and preferences. Of course, by using big data, the process can be carried out faster.

  • Build a more effective marketing strategy

With all the customer or consumer data that we currently have, it certainly won’t be difficult to build an effective marketing strategy that can reach every consumer according to our market. Using the right marketing strategy will prevent us from having a shrinking market share caused by relationships that have not been built perfectly with our consumers.

  • Improve consumer shopping experience

Big data’s ability to store vast amounts of information provides us with a wealth of opportunities to enhance the shopping experience for our customers. We can create products and services by looking at customer needs and satisfaction through the data that enters big data.

  • Increasing e-commerce innovation

Business owners and managers absolutely must implement a new idea. Obviously, the innovations are made to keep the company adaptable to the ever-evolving market. When business owners examine customer patterns using big data analytics, they gain valuable insight into their clientele. In order for businesspeople to take advantage of this trend and develop more specific innovations.

Connection Big Data and Digital Marketing

  • Helps to Plan Better Marketing Campaigns

One of the uses of Big data in targeting customer needs and developing informative content is to collect information about customer behavior by utilizing cookie files.

Cookie files are a collection of information about customer activities when carrying out their activities on the internet. In this case, marketing can also be done effectively because there is no need to guess in determining customer desires and can increase productivity.

Tools for analysis are also important to note because they can ensure providing valuable data and actionable insights.

  • Helping the Right Decision Making

The main goal in doing business is to be able to bring in customers and be able to increase company profits at the same time. By using Big data in digital marketing, it can help you make pricing decisions as detailed as possible.

Because in the business to business (B2) sector, there are transaction activities that are different from before and after making transactions. For example, when a customer has bought your product, a question will arise, ‘can they be able to buy this product every month?’

Another advantage is that it allows you to save time and get more accurate insights and less chance of errors.

  • Opening New Business Innovations in the Future

Several years from now, all companies will compete with each other to implement Big Data in their marketing activities. These data sets, with some help in precise data analysis, will reveal previously unknown information about customers. So that the information obtained can be an evaluation and also innovation in products that can be created.

With the help of digital marketers too, they will find out how often customers buy a product and find out the payment method.

  • Optimizing Business Performance in a Personalized Way

The most important thing in doing marketing is consistently engaging customers. Digital marketing activities are not easy, because the activities are widely spread so that many customers can see your business campaign activities.

If you apply Big Data, then marketers will be assisted in choosing the right person or what is called customer personalization. Personalize the activities of sending your business product offers to the intended person, either via message or email marketing.

For example, when a customer opens a beauty product page, analysis data will occur. This analytics data will record all traces of the customer’s browsing. The more they open and search, the more you can show relevant content based on their browsing history.