The expanding universe of big data brings in more opportunities for ventures to thrive, yet more risks inevitably follow, too. To escape the complexities, some companies decide to ignore the topic, in general, underestimating the importance of data science, big data analysis and business intelligence services for their marketing activities.
For good or bad, big data is not a fad that will disappear anytime soon. Over time, this trend will only peak, thus adopting it faster means getting an access to its advantages earlier. What advantages exactly? To answer this ‘what,’ we first need to understand why big data is important anyway.
One of the reasons why some might underestimate the practical significance of big data is the hype and mystery around the agenda. Sometimes the wording is rather foggy, like “Big data helps you to transform raw information into a valuable resource”. For those who are hesitant about adopting any data science solution or creating their own, this sounds unconvincing.
If a company is able to sort out the data flows they constantly receive, they will acquire a pool of insights into their own practice. These facts should be used to compile dashboards and reports to bind different bits of statistics together and get the holistic view of the company. Then, this company can gain an advantage over competitors through a number of perks, such as:
While companies across different domains can also enjoy other benefits of Big Data analysis, they can be too specific to fit all. Therefore, we'll review the general perks which can bring advantage to any industry.
McKinsey states that a 1 percent price increase results in an 8.7 percent increase in operating profits. They also estimate that up to 30 percent of yearly pricing decisions actually fail to deliver the best price, which leads to an extensive amount of lost revenue.
As the art of pricing is critical to business success, nowadays it’s impossible to only rely on ‘trial and error’ or ‘gut feeling.’ Big data should be the centerpiece of decision-making, helping marketers identify what pricing strategies are working and which ones are flat-out.
To define a relevant pricing strategy, marketers need to gain insights on customer behavior across locations, product/service groups and seasons. They also want to consider the current goal, such as to attract new clients, boost impulse buys, increase occasion-driven or gift purchases and more. The resulting pricing strategies may be as follows:
With big data, marketers have access to each customer’s personal experience with the brand’s products and services.