Big Data: A Key Aspect of Customer Relationship Management

Jan 27, 2017

In today’s digital world, data is king. Immense volumes of it are being generated every minute, from a multitude of sources, and the ability to identify and analyze useful information from it is key to improving operations and gaining a competitive advantage.

There are several sources of big data. A business generates a lot of data from many places, both from its own systems and processes and from its customers. Data analysis can help identify strengths and weaknesses, improve operational efficiency, determine consumer habits and needs, and deliver personalized offers and recommendations.

It has also been noted that social media platforms offer a wealth of information, particularly for marketing and customer relations. However, this data is largely unstructured, making it more difficult to analyze. This makes it all the more necessary to find or develop software that can manage and interpret this information and put it into a more useable form.

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The advantage of such an overwhelming amount of data, of course, is having such a large pool of information to work from. With effective data analysis, patterns can be found that will yield insights into consumers’ habits and preferences, providing feedback on the company’s actions and offerings and allowing the business to provide customized offerings and interactions to customers.

Big Data Analysis for Customer Relations

In an age where consumers have easy access to reviews and opinions and expect prompt attention and response from brands, managing customer relations is essential. Bad customer experience can have a much bigger impact than in the past, and a good one can bring positive media attention and new business.

One thing that big data analysis can do is gauge the effect of a campaign or business strategy both before and after implementation. Data from previous efforts can be used to determine how a future campaign might be received, and tailor it to suit consumer preferences. The same can be done for products and services as understanding consumer preferences make it easier to build a product that will satisfy the greatest number of people possible. This can save time and money when it comes to planning and executing projects, and also result in happier customers.

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Big Data can also allow businesses to customize the consumer experience in a way that would formerly have been far too time-intensive and impractical. Recommendations and personalized coupons have become commonplace and often expected, but it is thanks to big data that they are possible on a large scale. Promotions like these encourage consumers to spend more money, while also making those consumers happy, as they are given deals on products or services that they care about. And if a business offers a personalized service and rewards for shopping, the consumer’s switching costs increase, and they are more likely to stay with that business rather than look for other options.

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Social media data mining and campaigning can be taken too far, however. Privacy and customers’ expectations of it need to be taken into account when analyzing data and planning campaigns. Otherwise, a brand can come across as invasive and creepy, driving people away rather than bringing in more business.

Big data is a valuable tool for every aspect of customer relationship management. It helps businesses discover their target demographic and learn about consumer priorities. It determines public opinions on products, services, marketing campaigns, and more. It allows companies to tailor their marketing and promotions to their audience, and to provide a level of personalized service that would otherwise be impossible. With more and more businesses adopting big data analytics, it’s essential to take advantage of this tool to remain competitive in the market.

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