“Information is not knowledge” – Albert Einstein
We often refer to our time in the chronology of human development as the information age. The onslaught of information overload through social media updates and an inbox full of emails bear witness to that. But does information naturally imply knowledge? Is raw data all that is valuable and necessary? Albert Einstein didn’t think so. And neither do we.
“We’re not in an information age anymore. We’re in the information management age.” – Chris Hardwick
Imagine that despite knowing your best friend’s birthdate, you let the day pass by without a celebration, a gift or even a wish. They wouldn’t quite appreciate it, would they?
Information is of no use unless applied. Big Data analytics, is, therefore, at the core of every CRM System that is worth its money. And you won’t see a better example of business strategies being driven by Big Data Analytics, than in the top internet companies of our time.
What is Big Data Analytics?
Big Data analytics is the process of drawing information from multiple and varied sources. Analyzing them to unravel hidden patterns and connections to guide your business strategy by predicting customer behaviour and market trends.
Amazon’s Amazing CRM for Big Data Analytics
Amazon is topping the list of the biggest internet companies of this century. Not just an e-commerce giant, Amazon has been the pioneer of the personalized recommendation system, which was born out of Big Data Analytics carried out by its own in-house CRM system. Amazon wielded the power of impulse advertising through its recommendation system. Armed with specific information about customer preference, budget, requirements and taste, the impulse advertising approach is much more focused and hence much more effective.
Big Data Analytics has assisted Amazon to open up other sources of revenue as well. According to a report by MIT Technology Review Amazon is now selling customer information to sales and marketing teams, who are tailoring their marketing efforts to rope in customers.
Facebook wins the Social Media Face-off, thanks to Big Data Analytics
Even after 13 years since its inception, what makes Facebook stand strong? According to theSocial Media Marketing Industry Report, 2016, Facebook is still the most preferred social media platform by marketers.
93% of total marketers said that they use Facebook as their choice of marketing platform, as compared to 76% that use Twitter, and 67% that use LinkedIn. Where many other social networking platforms have faded away, Facebook still continues to create a personalized social media experience for its users, powered by Big Data Analytics.
Facebook employs Big Data tools like tracking cookies, facial recognition and analyzing likes to determine user behaviour. With these tools, Facebook can track user browsing habits, their likes and dislikes, and tweak its timeline to bring the content and advertisements that will appeal to their individual taste and pain points.
Expedia’s Big Data Expedition
When Expedia acquired Orbitz in 2015, they didn’t just eliminate one section of the competition. It was also an elaborate approach to acquire more customer data to add on to their pre-existing roster of information. Sedan dess, they have put this massive collection of customer data to good use by launching their travel portals using the Amazon Web Services (AWS) cloud.
They have a two-pronged approach when it comes to employing Big Data analytics to provide products and services. On one hand, they scan the Global Distribution Services to extract all relevant real-time airline information about different flights, pricing, air miles and so on.
Å andra sidan, they also create elaborate customer profile based on a network of nodes called the Expedia Travel Graph, which draws in customer data that they have collected over the years, on their own and through the acquisition of the Orbitz database. This data includes customer information’s along the lines of customer patterns and preferences, as derived from their past purchases and bookings. It also includes information regarding customer searches or interests, that can be exploited for future sales.
Nu, this is where the magic of Big Data analytics comes into play. It takes the complete latest airline information and then pairs it with its knowledge about the customer. The result? When the customer has certain pain points addressed, they are invested more in the system. Even if it doesn’t go all the way to taking care of them, the customer feels a sense of satisfaction at having their needs met. This satisfaction leads to a happy customer. And as well all know, a happy customer bodes very well for sales.
Eg, Suppose SouthWest Airlines is having a rush sale where first 10 customers to book a ticket with them for LA to San Fransisco will get a 50% discount on the price of the ticket. Big Data analytics can help Expedia to instantly reach out to the customer, who in the past has shown a penchant for the lower fares, and also been a frequent traveller for this particular route. By connecting these two branches of information, Expedia has been able to create a very customer-centric module that is not just attracting travellers but also making them stick to it.
Netflix and Chill with Big Data
Big Data analytics is enhancing every little aspect of our lives. It is even guiding what you watch next on Netflix! This popular streaming service has a very elaborate algorithm in place that has its core in data analytics, which is put into action from the second a new user signs up. When you register, you’re asked to take your pick of some popular TV shows and movies. This helps the algorithm to create an elaborate user profile based on your personal preferences. The algorithm then runs this by the millions of other useful information that they already have in their database and devise a prediction system. This system then continues to present individual personalized suggestions for every user through the “Top Picks” section. Netflix has spent some serious money in getting this algorithm right and it’s majorly responsible for taking them to the No.1 position.
Depending on your search keywords and your personal preferences, Netflix can come up with highly specific and niche suggestions. Here’s a shared document containing a list of microgenres that were suggested on the channel.
Netflix has, in a very short amount of time, moved on from its content distribution role to being a content creator and the credit for that lies with Big Data analytics. Till exempel, it was big data that pointed out that viewers were showing remarkable interest in content created by David Fincher and starring Kevin Spacey. This led Netflix to waste no efforts and outbidding both Amazon and HBO for the rights to House of Cards.
Go Big or go home – Kapture shows the way
Employing Big Data analytics with the help of the right CRM platform will help channel your efforts into a much more focused direction. The biggest names in the tech world are only showing you the way on how to extricate and manipulate Big Data and use it to fuel your business strategy.
With Kapture CRM, you can set up customized channels that help collect and collate data in order to pave the way for better analytics. Kapture CRM not only assists you in generating data related to your customers but also shows you the way to put it into good use and grow your business. Kapture’s integrated platform provides you with the choice to try multiple approaches when it comes to manipulating customer data and aiming for holistic customer needs management.
For more insight, check out this TED Talk by BCG’s Philip Evans on the role of Big Data in transforming the business landscape.