Massive amounts of big data is available on nearly every consumer segment in the market today. Through numbers and analytics it is possible to create more effective, targeted and compelling marketing and communication than ever before.
We spoke to Kimmo Kärkkäinen, Senior Advisor at Edita Prima and resident big data and analytics expert, to find out more.
We all know big data and analytics are gaining traction, but are they just this season’s buzzwords, or is there more to it than that?
Big data is definitely not a passing trend – it refers to datasets that are too large to be managed by a single database. The amount of customer data available to companies now is growing at an exponential rate and will continue to do so.
How important is it for companies to leverage all the data available to them to help tailor their marketing and communications activities?
Companies realize that there is a lot of value in big data, but the real challenge is collecting and collating that data. Even if companies collect big data, they rarely know what to do with it. The data needs analytics to offer true value to marketers, and that doesn’t come easily.
So how can companies find value in the numbers?
There are many tools available to analyze data, but talented people are required for analytics and data visualization in order to gain meaningful insights from the numbers. The amount of customer data available from marketing communications, transactional data, behavior, and so on, has exploded, and now companies need to invest in both technology and qualified analytics experts to discover its true value.
Can you provide us with an example of how Edita Prima leverages big data to effectively target different consumer segments?
Through in-depth analysis of the National Vehicle Register’s big data, we were able to identify and target new and specific buyer groups for new cars. We noticed an abnormality in the data, where consumer’s buying patterns changed when they reached a certain age. We realized that a newly retired previously high earner would downsize to a more economical vehicle, as opposed to upgrading as they would have done during their working years. Our client was able to adjust their marketing strategy to pinpoint this demographic and deliver a more relevant sales message to this particular consumer segment, at the right point in time.
In your opinion, what does the future hold for big data and analytics? What stage of their evolution are they currently in?
Some 20 years ago, big data was called data mining. At that time technology was advanced and databases were optimized for reading, not writing. Analytics are moving to real-time predictive analysis.The internet age has created new challenges like unstructured data, and computing power and data storage are no longer problems. The challenges, and indeed the true value of, big data are more prevalent today than ever before. It’s about being able to sift through the noise to uncover the insights that allow you to effectively identify and target gaps in the market.
Senior Advisor, Design Services