Although Big Data projects can be helpful to many organizations, launching these initiatives using the wrong metrics can lead to poor practices. And even though most experts agree these endeavors aren’t a panacea, business decision-makers continue to hastily adopt strategies that increase challenges.
An Enterprise Apps Today report, which highlighted the mindset of customer analytics expert Larry Freed, noted that the gathered data by itself won’t necessarily provide firms with opportunities. Businesses must also embrace the right tools to take advantage of those digital resources.
Freed believes that the variety of information being collected will give organizations the biggest challenge when adopting Big Data endeavors because some of the information being gathered isn’t always accurate.
“If I am an anonymous visitor to a website on my tablet, my home PC, and my work PC, companies are not going to have the ability to recognize that I am the same person,” Freed said, according to Enterprise Apps Today. “Companies are gathering enormous amounts of digital data, but it can accelerate some bad practices.”
In other words, context is everything. Companies need to proactively establish parameters to ensure they understand prospective and existing customer behavior and have the tools needed to turn activity into useful information. Doing so, however, may require the development of new metrics.
More detail is needed
In the past, businesses would often use generic metrics that would put customers in one of three categories based on their response to whether or not they would recommend a company to other people, Freed asserted. The classifications — promoter, passive, or detractor — would then tell decision-makers how “loyal” clients are. During the past several years, however, executives have learned that these categories aren’t entirely accurate, which also means that the strategies built around this segregated system weren’t always effective.
According to Enterprise Apps Today, Freed’s research found that detractors, who were often deemed “disloyal” customers, weren’t necessarily as negative about organizations as their responses indicated they were. In fact, many individuals who were put into this category were very devoted to certain enterprises, suggesting that the information being collected and analyzed wasn’t accurate.
Today, businesses can use Big Data to their advantage to turn metrics into more precise and correct measurements, allowing decision-makers to pursue projects that will actually generate a positive return.
Big Data builds a better landscape
A separate CIO report highlighted how companies can use Big Data to build a better picture about prospective and existing clients. These new metrics can improve marketing, sales, and customer service initiatives — all of which are critical for companies looking to gain a competitive advantage over rival firms without losing sight of their patrons.
Chief Marketing Officers told CIO that the ability to properly collect large volumes of information on individual purchasing behaviors and preferences can give businesses of all sizes new opportunities to augment their customer service. At the same time, however, executives must be proactive to ensure their Big Data initiatives are collecting the right resources because looking in the wrong place for answers to a certain problem may not yield positive results.
In the coming years, organizations will be encouraged to adopt Big Data practices for a number of reasons, including the opportunity to improve customer service, marketing, and sales. By learning more about prospective and existing clients, companies of all sizes can meet the needs of their users more accurately and precisely.