Big data is helping brands usher in a new era of consumerism
A few years ago, an angry dad stormed into TARGET’s retail store. He was fuming with rage. Upon inquiring, he claimed his daughter, a high schooler, had been receiving coupons in the mail from the store for products like cribs and diapers. He accused the brand of encouraging her daughter, a minor, to get pregnant. The store apologized for their blunder, and both parties didn’t take things any further. A few days later, TARGET heard back from the father; he told them a few things had been going on in his house that he was previously unaware of. His daughter was actually pregnant, and he owes them an apology. TARGET’s internal algorithm tracked and processed his daughter’s browsing history. Her purchase of certain items like scent-free soaps and vitamin supplements triggered the system to infer that she could be expecting. They were right; without being told, TARGET knew a girl was pregnant before her own father. It was facilitated by big data.
Infobesity:
Information overload
If you haven’t been living under a rock, then chances are you have already heard about big data. There is no hiding from the industry’s favourite buzzword right now. The problem is, it has been miscommunicated and misinterpreted more than any new concept out there. To put it simply, big data is just a large collection of information. The collection is so large and complex that it becomes impossible for traditional data management tools to process. The overall internet usage worldwide has grown exponentially over the past decade, which resulted in the accumulation of the amount of data previously unheard of. Every mail you send, each like and share on Facebook, every picture you upload is new information generated. The information generated by you is not only limited to your social media activities, but it also includes the websites you search and products that you browse on e-commerce websites. Big data also consists of the information created by Airline flights across the world, weather updates and patient data in hospitals. The magnitude of the data which is created every day is astonishing. Every two days, we create as much information as we did from the beginning of time to 2003. It was expected that by 2020, the total digital information in existence would amount to 40 zettabytes. If all the data created in just one day is burned onto DVDs, the stack of DVDs would reach the moon twice.
A large portion of this colossal database is created on social media sites. We generate 1.8 million likes and upload 200 thousand photos on Facebook every minute. Facebook users share 30 billion pieces of content every day. It would take 15 years to watch every video uploaded by users in a single day. At present, all the data centres worldwide make up an area of about 6000 football fields. The numbers are overwhelming. The amount of data is so enormous that whoever is in its procession often fails to make meaningful conclusions about the magnitude of data flow. That doesn’t mean there is no one capable of harnessing its power. With the help of powerful analytical tools, companies are slowly starting to make sense of big data. Several brands are at the forefront of the digital revolution, and they have learned how to make the best use of it.
Enhance Product Design
By now, most brands have realized how important big data is to remain relevant in the market. As competition gets tougher, brands are looking to use data to edge past their rivals. The main focus of any brand remains the same, to market the wants of customers. Big data empowers them to know what their customers want. It has allowed brands to be more predictive rather than reactive to consumer trends. Big data has also enabled brands to take product personalization to a new new heights. Computer-generated data helps companies understand consumer behaviour on a level unimaginable in the past. Amazon Fresh and Whole Foods are the latest examples of how big data changes product development. Being the biggest retailer in America, Amazon already has consumer data of the entire country. They analyze this data to understand how people make grocery shopping decisions and how the suppliers interact with grocers. This data gives insights whenever there is a need to implement further changes. More and more Bangladeshi brands are incorporating big data into their operations.
Data Analysis: Big Brands Making Big Bucks
Big data is credited for Coca-Cola’s impressive customer acquisition and brand loyalty in recent times. The company strengthened its data strategy by building a digitally led loyalty program. Coca-Cola’s director of strategy didn’t beat around the bush and admitted that data analysis is firmly behind the brand loyalty of Coca-Cola. He asserted, ‘Consumers do a great job of sharing their opinions with us – either by phone, email or social networks – that allow us to hear their voice and adjust our approach’. Brands no longer lose millions of dollars on failed marketing campaigns. Advertisers can now make a more sophisticated analysis of big data available to them. Customer insight enables them to come up with more focused and targeted campaigns. A more targeted campaign means businesses can save money and ensure efficiency. Netflix is a great example of a brand that uses big data analytics for targeted advertising. The company collects an enormous amount of data from its 100 million subscribers, and then suggests to them the next movie they should watch. Big data has also amplified the ability of brands to innovate and redevelop their products. It has ensured greater revenue for the brand and higher customer satisfaction. Brands collect as much data as possible before designing a product; it helps them manufacture what exactly fits the customers.
The information generated by you is not only limited to your social media activities, but it also includes the websites you search and products that you browse on e-commerce websites.
Big Data in Bangladesh: Potentially Unexplored
Recently, Chevron Bangladesh has invested heavily in data analysis technology. It enabled them to become more accurate in deducing the daily output in their power plants. Perhaps the mobile phone companies are the most extensive and frequent users of big data in Bangladesh. Their campaigns and promotions are designed based on past data usage. The highly personalized package offers points to increase the use of personal customer data. However, mobile phone companies have been ineffective in utilising big data. They comprise the world’s 15th most extensive subscriber base with more than 90 million users. Considering the amount of information that individual subscribers are generating, contemporary usage has been underwhelming. Operators can cash in on the GPS data amassed from users. It also provides small business entities, like restaurants, opportunities to target new customers. GPS data can also be used to bolster the traffic management system in Dhaka. Perhaps, the organizations which have the most underused data are commercial banks. They have access to rich, accurate customer data, which can be used to enhance customer experience. Until now, banks have failed to translate big data into anything meaningful.
Privacy concerns & Way Forward
It is time to address the elephant in the room – privacy. Big data is helping brands, but how much is it helping consumers? Are the privacy risks bad enough to let go of the benefits? Let’s start with how big data becomes a problem. The websites that collect data about customers possess a massive amount of personal data and can store them indefinitely. So, there is a possibility that your embarrassing pictures from 2008 will live on in the depths of Facebook servers forever. It puts your entire internet history in danger of falling into the hands of any nefarious character. Even if you are not involved in anything illegal or remotely unethical, you will not be thrilled if some untrustworthy entity puts every piece of information about you online.
On the other hand, big data—and the companies making a living out of managing it—are paving the way for some great innovations in science, technology, and medicine. The brands use big data to design products that make our lives significantly better. Big data has made existing products more effective and promises to revolutionize the consumer experience. It is a powerful tool that can change the individual experiences of different products in the future. Right now, there is only one aspect of big data that needs to be sorted out – control; more specifically, the lack of control on our online data and the amount of control big corporations have over them. There needs to be an international consensus about how much and how long companies can store our data and in what capacity they can use them.