Big Data Unleashed
ALTA Digital is in awe of Big Data.
This milestone is poised to become crucial since it can help companies explore concrete facts to reach new heights.
In fact, Big Data is everywhere.
Today, everyone knows that they won’t be able to kick-start a Journey of Transformation without taking the boon of Big Data into account. This tremendous watershed has allowed companies to have access to remarkably complex data sets, letting business leaders come up with solutions that cater to their customers’ needs like never before.
But how will Big Data’s revolutionary tech help companies increase customer retention levels in the near future? By reading this Big Data article, you’ll be able to learn what is Big Data, what is customer retention, and how the two will join hands to offer business leaders the ultimate gift.
What is Big Data?
Big Data is actually a specific field which takes care of different methods to analyze and deal with data sets that are either super huge or too complex to be handled by what is known as traditional data-driven application software.
A concept that’s been evolving with time, Big Data is now the driving force behind the systematic waves of amazing innovation we’ve been experiencing in the 21st century. In fact, from the Internet of Things to Data Science and even Artificial Intelligence, the explorers of Big Data have been able to reap exciting rewards and develop new businesses.
Since the dawn of the digital age, humans have been responsible for a veritable data explosion. We use our cell phones to communicate our will, Pinterest to showcase the fads we love, forums to express our straightforward opinions, Instagram to show photos of the places we enjoy, Snapchat to post a video of our favorite vacation spots, etc.
From finance to real estate, from the food industry to electronics, all businesses are now taking advantage of the data humans have left behind to offer better services, allowing customers to get an unrivaled treatment that takes their personalities, vision, and desires into consideration.
Every two days, humans create as much data as they did from the beginning of humankind until the year 2000. Moreover, that amount of data keeps increasing: by 2020, digital info will reach a whopping 50 zettabytes of factual data.
How Does Big Data Work?
Big Data is based on the idea that you can get amazingly sharp insights on any topic if you only know as much as possible about it. By comparing analytical data, you can better make concrete predictions, perceive relationships between different facts, and come up with a perfectly nailed conclusion.
Usually, the treatment of Big Data is performed by taking advantage of models which are based on the data we collect. Big Data scientists run simulations, shaping the value of diverse data points every single time, later monitoring how that impacts the final results.
This complex data checking process is actually automated: super-advanced tech runs millions of these impeccable simulations, tweaking and changing different variables here and there until a pattern emerges that can help solve a problem.
Once limited to Excel spreadsheets, data has now been set free.
Here are some of the ways in which Big Data is already being used:
- Customer Experience
- Product Development
- Predictive Maintenance
- Fraud & Compliance
- Machine Learning
- Operational Efficiency
Now that you know what Big Data is all about and how it’s being utilized, it’s time for you to get to know more about the wonderful realm of customer retention.
What is Customer Retention?
Customer retention actually has to do with the ability that a product or company have of effectively retaining clients over a specific time window. Once businesses get to take advantage of an optimal customer retention strategy, they will see that customers tend to return and keep buying their product or service.
The process of continually engaging product buyers to keep purchasing services or products, a set of customer retention tactics can really help make sure businesses establish deep relationships with their customers, allowing them to be loyal to the brand.
These customers will then be considered as highly-valued commodities.
Why? Because they’ll be able to power-up word-of-mouth marketing, which is the most effective kind of marketing known to humankind.
Since it’s both less expensive and easier to retain current clients than it is to acquire new ones, customer retention has become a sort of Holy Grail all marketing pros want to dive into.
Still can’t see why customer retention is essential?
Check these customer retention stats:
- 32% of business leaders state that retaining current clients is their number one priority
- 80% of profits come from only 20% of current clients
- The factual probability of selling to a current client is 60%. To a new client? 10%
- It costs 5% more to get a new client than to keep a current one
- An increase of 2% in customer retention can lower costs by 10%
- Businesses lose 71% of customers because of an inadequate customer service
You know Big Data is already changing businesses and you’ve also been able to understand just how important customer retention is.
Now, what? Keep reading to find out how Big Data is going to be used to supercharge customer retention in the future!
5 Ways Big Data is Going to Boost Customer Retention
1. Reaching Out
What is predictive analytics? It’s actually a branch of advanced analytics which is utilized to make predictions regarding uncertain events in the future.
It effectively encompasses a wide array of statistical techniques that range from machine learning, data mining, or predictive modeling, allowing masters to basically analyze both historical and current facts to make super-reliable predictions.
How does that relate to customer retention? By using predictive analytics and Big Data, experts will be able to go ahead and predict who are the clients that are going through issues with a service or product.
This means companies can grab that juicy data and take customer-relationship management to new heights.
How? By calling the client who’s experiencing the issue before the customer decides to call.
This almost-psychic ability to deal with problems is sure to become a customer retention revolution. In fact, this really provides different advantages to a business since the service representative will be able to get a great idea of what the issue is all about before getting to reach out to the customer.
That means they will be able to stop, think, and ponder upon a solution for the problem before contacting the client. This will also prevent the infamous annoyance that all customers feel when they know they’ll have to waste time calling the customer service number.
Making corporations take care of issues more proactively than ever before, Big Data and predictive analytics will help customers feel loved, know they’re taken care of, and guarantee clients know that they’re prepared to solve any upcoming issues.
2. Cut Product Frenzy
What’s the usual method businesses go for in order to acquire new clients? Creating exciting new products, services, options, prize cards, features, etc.
But what is the problem? Clients now have to deal with a torrent of differently-shaped products, thousands of diverse shampoos that all promise shiny hair, hundreds of lotions that all claim not to contain sulfates, etc.
How can Big Data give a helping hand in a world which is filled with different possibilities and intensive product saturation? It can help businesses reduce that insane product proliferation.
How? Using Big Data, companies will now be able to take a step back, analyze what customers really love, see what are the best products that were chosen by the people, and curb the need to come up with endless versions of the same detergent.
When companies are able to narrow it all down and give customers the product they really want, they’ll be sure to increase customer loyalty and therefore retention.
By analyzing specific data sets found in inventory turnover and client transactions, corporations can effectively begin to ascertain customer preferences. This will allow them to optimize their offer.
At the end of the day, companies succeed when they’ve taken the time and effort to analyze client information in order to come up with decisions that allow them to provide the products customers are yearning for.
3. Using Real-Time Data
How can businesses get inside the customer’s soul? How can they be sure to get an X-ray that allows them to know what customers want when customers want it?
By using Big Data’s insurmountable power, it’s possible for businesses to connect with customers and know what they’re thinking in real-time.
Big Data provides concrete access to real-time data on what customers are inclined to buy, what they’re talking about, which type of products they’ve been clicking online, etc.
This ability to keep having an everlasting conversation with the consumer isn’t a dream: it’s a reality brought about by the blessing of Big Data, and it will allow companies to craft tailor-made landing pages, ads, and mobile apps.
The aim? To give the customers what they want when they need it.
At ALTA, we perceive real-time data as a masterful method everyone should be able to take advantage of.
In the arena of customer retention, companies which use real-time data will be able to establish an ongoing connection with their customers, which will effectively change the way brands interact with their target audiences.
4. Potential Prospects
How can businesses acquire and retain new clients? By taking full advantage of Big Data’s keen ability to identify client needs, allowing customers to get the best option for them.
Let’s ponder upon an example: a company could use behavioral data, patterns, customer records, and call center notes to be able to provide the perfect product that would best fit the new customer.
By being able to match products and customers using precise information, businesses will be sure that clients will always know they’re being taken care of. The better companies use Big Data for customer acquisition and tailor-made offers, the more rewards they’ll reap in the age of creative technology and digital transformation.
5. Offers Become Custom-Made
Personalization. It seems to be this year’s loud buzzword. It’s everywhere, separating steady businesses from failed companies.
But how can you utilize Big Data to ensure personalization takes customer retention further? Go custom.
Everyone wants to feel like they matter. Every single client wants some sort of personalization.
This means that - if companies fail to customize their offer - clients will decide to leave on the spot and find a company that’s willing to go the distance.
Big Data can help corporations access such targeted info as social data, gender, or location. This means it can allow marketing experts to send offers based on the particular client’s yearnings and desires.
Using target demographics and location-based marketing, Big Data will allow companies to avoid sending a hyper-generic promo or discount. Indeed, enterprises can now be sure to offer exactly what the customer wants.
It can be a special deal that’s tailor-made to win over the client, taking their social media feed, the opinions they shared on a particular forum, and a comment left on a blog into consideration to cater to every specific pain point.
This impressive ability to take personalization to a whole new level is probably the biggest way in which Big Data will help customer retention reach a golden age.
In fact, the ALTA team sees personalization as the weapon of the future.
Customers need to feel like products speak to them and are tailored to their desires, needs and wishes.
Through the boon of personalization, companies will be able to create a specific experience that allows clients to know they’re dealing with a special brand every single time.
Big Data and Customer Retention
Creative technology isn’t just about artistic endeavors and technological swagger: it’s about using technology to help people get what they want.
By using Big Data analytics, companies will effectively be able to explore new trends, listen to consumers in new and unexpected ways and, most importantly, use an array of different options to increase customer retention in this fiercely competitive age.
Big Data and customer retention will join hands and become fundamental business buzzwords in the coming years, becoming the decisive factor that will allow brands to set their competition aside.
What about you?
What is your take on the use of analytical data to optimize customer retention strategies?
Let the ALTA team know all about it in the comment section below!