According to a report from Dresner Advisory Services released last year, big data analytics adoption soared in 2018. While 17 percent of enterprises surveyed in 2015 had adopted big data analytics by 2015, 59 percent of companies had embraced it by the end of 2018.
The DAS report highlights the importance of big data analytics in today’s corporate landscape. According to the report, even those companies that haven’t yet used the technology understand it’s value. Eighty percent of those surveyed said big data is important to their business intelligence initiatives.
There are numerous advantages to using big data. This kind of analysis can be used to boost marketing efforts and increase sales, but it can also serve as a method for bolstering customer retention efforts.
In light of the benefits, enterprises go to great lengths to acquire big data, including working with data brokers and outside firms to better understand consumer behavior. But often times the best source for this analysis is your company’s own internal data. All you need to know is how to access it.
Internal data can come from a variety of sources including a company’s financial and transactional systems. This data can reveal customer shopping trends like buying habits and shopping preferences. Other sources include your internal documents, archives, customer relationship management system, and other software platforms.
This data can be used in a variety of ways, but it’s especially beneficial in customer retention. Internal data can help reveal customer patterns and trends. By examining customer behavior, companies can uncover which of their activities are aiding efforts to build brand loyalty among consumers and replicate these results. Additionally, internal big data analytics can help companies give their customers a more personalized experience.
Here are three examples of how companies are using their internal big data analytics to benefit customers.
Soft drink manufacturer Coca-Cola has been using internal big data analytics to strengthen customer retention. In 2015, Coca-Cola implemented a new data strategy by creating a digital-led loyalty program. The program strengthened sales by rewarding consumers for purchasing Coca-Cola, but it also provided the company with a new internal data set. It told Coca-Cola which kinds of customers were buying which products and when. The company used the data they collected from customers engaged in the loyalty program to personalize advertising and show those customers more of what they already liked.
Online retail leader Amazon uses internal big data analytics to provide shoppers with personalized recommendations. Amazon’s collaborative filtering engine analyzes a user’s purchase history, reviews, searched for items and items placed in their shopping cart or wish lists to show users products that will be most relevant to them. Individual user data is combined with wider customer trends on the platform to show users what other customers with similar buying habits have purchased. This method generates 35 percent of the company’s annual sales.
With more than 100 million subscribers, video streaming and rental service Netflix has a wealth of internal data. In recent years, the company has used this data to improve their user experience by providing personalized recommendations. To do this, it pulls internal data from customer ratings and searches. It also takes into account user behavior such as when a video is paused, which devices customers use to watch content, and whether a user skips the credits to predict customer preferences. Recommendations derived from this analytics is estimated to influence 80 percent of the content streamed on the platform. Netflix estimates that its use of data saves the company $1 billion in customer retention costs annually.
If you want to begin using your internal data to increase brand loyalty and give your customers a more personalized experience, contact Treehouse Technology Group today. We specialize in helping companies access their internal data and use it to tell captivating stories.