Sunday, February 16, 2020

Benefits and challenges of using customer data for marketing



In the previous blog, we discussed the value of Big data in marketing. Today's topic of discussion is the benefits and challenges of using customer data for marketing.


We have discussed the importance, the various types of Data and what makes up the Big data and today we will discuss the benefits that an organization reaps from Big data and the challenges that it usually faces in order to gather or use this data.


Benefits

Gathering this data gives helpful insights relating to customer preferences, customer buying behavior, and patterns. This helps the business and companies to align themselves with their target audience and provide them with a better user experience. 

A more personalized experience is put forward to the individuals initiating customer engagement and improving customer relationships resulting in higher sales and satisfied customers. 


Challenges


Cost is a major challenge for enterprises. The collection, storage, and analysis of this data require tools and infrastructure to be built. Some companies keep these on site while some outsource it. It requires buying hardware, software, and licenses.

Another major challenge is the security aspect of this data that is collected. Realizing that data is of the utmost importance in today's era to the businesses, data leaks and misuse of the data can be a big turn off to the customers and keep them at bay from your company. Complying with the data collection laws and keeping them safe from hackers is a challenge that a lot of corporations face and fear.

Last year we saw data breach in many giant corporations like Facebook, Quora, Underarmour. A data breach on Facebook resulted in a loss of $13 billion market cap in just one day.
Such breaches in big corps suggest how big of a challenge Data security is.

We will meet again next week with a new topic till then keep sharing your views, suggestions, and questions in the comment box below. 


References:
Kokemuller, N. (2019) 'The Advantages & Disadvantages of Database Marketing'. Available at: https://smallbusiness.chron.com/advantages-disadvantages-database-marketing-22810.html (Accessed: 04 February 2020).
Minkara, O. (2014) 'The Good, the Bad, and the Ugly in Using Customer Data for Marketing'. Available at: https://www.aberdeen.com/cmo-essentials/good-bad-ugly-using-customer-data-for-marketing/ (Accessed@ 04 February 2020).
Rongala, A. (2016) 'The 5 Challenges in Customer Database Management'. Available at: http://customerthink.com/top-5-challenges-in-customer-data-management/ (Accessed: 05 February 2020).

15 comments:

  1. You've used some great examples and managed to convey quite alot of information in a concise manner. Personally, loved the example where Facebook lost $13bn due to a data breach.

    Great article, Amrit.

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    Replies
    1. It does pose a question if one can trust and be sure of the safety of their personal details they put in.

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  2. Good article! An example of Facebook indicates that even big companies find it difficult to deal with some aspects of customer data and its security!

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  3. Very much details and good explanation of the benefits. The example clearly give an idea of the brief information provided.
    Good going!

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  4. I agree with you that Big Data is challenging marketers, however, in the future it will become more important to deal with Big Data to enhance marketing processes.

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    Replies
    1. That's how one will gain a competitive edge over others!!

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  5. Thank you for sharing, Amrit. Some lessons to learn from the mistakes of giants.

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  6. Thank you for the comprehensive article! in fact, these capabilities of big data can reshape how marketers arrange their marketing campaigns and figure positive results.

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  7. Good information and well written! Thank you for sharing!

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  8. Good point! Very informative article!

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  9. चिरर्जिकल परिशुद्धता का एक लेख, बहुत अच्छा!

    ReplyDelete
  10. Customer data is important for marketing and you have explained how we can implement it efficiently.

    ReplyDelete