Big data can improve customer experience, reduce churn
As companies have come to realize that attracting and retaining customers depend on providing a personalized experience, more firms are looking to mine big data for enhanced analytic insight. By leveraging support from dba services, enterprises have the opportunity to understand consumers on a deeper level, develop more targeted strategies and thus, secure stronger and more loyal relationships.
CIO Magazine reported that Nationwide, a 90-year old insurance company with a multitude of databases and compliance requirements, has spent billions on big data initiatives for these purposes. Matt Jauchius, CMO of Nationwide, explained that these efforts are invaluable to his company.
"The ability to collect vast amounts of data on individual consumers – their consumption habits, their preferences, their interactions with the company – and then analyze those data sets for predictive behavior and proactively apply those insights … [that's] the basis of competitive advantage in the future for the CMO because you can provide a better experience," he told CIO.
Elana Anderson, vice president of IBM Enterprise Marketing Management, noted that big data projects have the potential to give marketers predictive capabilities that could result in more successful campaigns.
"Marketing has long been on a quest to get to the individual," she said, according to CIO. "Smart marketers…have been trying to get beyond the demographic for a long, long time. If you're able to address the individual at an individual level, if you're able to sense needs or meet needs before the customer is explicitly saying, 'I have a need,' that requires big data and analytics in order to get to that point. We're seeing tremendous value with uses cases around that."
More profitable relationships
Forbes revealed that successful big data initiatives can even lessen customer churn rates. The source explained that understanding this rate is critical for identifying and addressing any ineffective tactics or weak relationships. By patching these faults, businesses can retain more clients and ultimately drive profit long-term. According to Forbes, recent research from a data visualization firm found that if a customer had made just one purchase from a specific store, there is a 27 percent chance that he or she will repeat business with that company. Further, after three purchases, the customer is twice as likely to return in the future.
By analyzing big data from an ever-increasing variety of channels, including mobile devices and social media, enterprises can gain a stronger grasp on customers' needs, desires and preferences. This can eventually strengthen client loyalty and as a result, boost revenue.
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