How to use big data and create value for customers.
Companies have invested millions of dollars in large data and analysis, but recent reports suggest most have yet to see a refund for these investments. In the age where data is the new lubrication, how smart companies exploit the insights from these gigantic data pools to drive decisions for profitable?
In an exciting and influential article, Chris Anderson, editor of Wired magazine, argues, “facing large data, scientific approaches — hypotheses, models, is becoming obsolete. There is now a better way. Petabyte allows us to say: ‘Correlation is sufficient.’ We can stop looking for models. We can analyze the data without the hypothesis of what it can display. “
Discovering hidden patterns in the data has, therefore, become the new Grail. But even if data scientists can find the Holy Grail, these findings are often divorced from business problems.
Data is high, but most of us are not design professionals, and we have businesses to run. What we need is insight.
Fortunately, there are existing tools that grapple all of this data to the ground and allow you to make some sense of it.
Here are some small things you can do with large data:
1. Discover trends on Google.
Google is one of the 800-pound gorillas in the big data space. It is their mission to organize the information of the world and make it accessible globally and usable. We all know that we can use Google to search, but Google offers other free tools that convert data into insights.
2. Monitoring social media channels.
Keep track of what people are talking about your brand, your competitors, or other relevant terms for your business. Each one of them can be an opportunity to join, respond, show interest, solve problems or even turn a disturber into an argument for your brand.
3. Keep track of your social graphs.
Your social network — social networking friends — is a powerful asset. If you’re smart about social networking, you can have connections on LinkedIn and maybe, Facebook, you want to build relationships. Perhaps they are potential customers, contact journalists, bloggers or other influential people can be a boon to your business.
One of my favorite tools to keep track of the most influential people in my network is Newsle. It’s a web-based content search service that combines it with the people in your social graphs on LinkedIn and Facebook. Then they send you emails with a list of what those people have written.
Why do you care? Everybody invested time and energy in developing content. Most would appreciate if you join with it, comment on it or share it, this is an opportunity to enhance connectivity. It also helps you understand their insight when you are advertising them.
4. Get your site quantified.
Have you ever seen your website traffic report and wondered, “Who are these people?” Yes, big data can help you answer that.
To get accurate information, you will need to sign up to “receive the number” and place a code snippet on your site, but it’s worth the effort. When you understand who your site visitors are, you can target them better and better when you talk to them. You can even find a new market opportunity to pursue.
5. Not just focused. Target again.
Cookies everywhere. Their popularity led to a complete overhaul of how to purchase online advertising. We have previously purchased a website or group of sites that we anticipate that their demographic or psychology would likely suspend our target. Today, more and more, we buy individual groups based on cookie data on a variety of websites on the internet. There are dozens of enterprises that collect data on hundreds of millions of people and then sell it so you can enhance your display ad targeting.
Companies have succeeded in utilization the power of data starting with a particular business problem and then looking for data to help them make a decision. Contrary to what Anderson lectures, the process begins with a business problem and a specific hypothesis, not data. Consider the following these cases:
Amazon Prime Service.
In 2005, Amazon launched its Prime service, offering members free shipping in two days. Traditional retailers who have difficulty competing for price or variety that customers can immediately pick up the product in their store instead of waiting daily. Amazon announced a new service, Prime Now, that allows its members to place orders from more than 25,000 products that can deliver to their homes within two hours. How can Amazon provide thousands of products to millions of households within hours when other online businesses lose from three to five business days? Although warehousing and logistics efficiency is part of the answer, Amazon uses the customer’s past buying behavior to guess what they are likely to order in the future. This insight helps Amazon optimally locate their repository and store with the right products. Amazon knows the products you can order even before you do. Better predictability from rich customer data has another significant benefit: Amazon does not keep most of its products in stock for long periods of time, significantly reducing its working capital needs. Its cash conversion cycle is 14 days, much smaller than nearly 30 days for most retailers.
Heineken’s World Cities
In 2014, Heineken was facing a worldwide challenge: its consumers, especially young people “in the crowd,” have begun to like local craft beers more than. How can a global brand relate to these consumers? CEO Heineken realized that drinking beer was part of the social life of consumers. So what things or other events have driven and enriched their social behavior? The company finds that people are using social signals to determine what is hot in a city (bars, restaurants, events) to reduce FOMO (fear of missing out). Using this insight, Heineken launched a campaign called “The City of the World” . Soon, more than 100 markets have translated this global strategy into the local market, creating other unique ways to help consumers find adventure experiences in the world. In London, Heineken-branded cabins have taken people out of their comfort zone, offering customers a can of Heineken cans to the other pubs in the city for free; At the Heineken green door in Mexico City, this amazing experience — an unexpected bike ride, a trip to London, or a great dinner. In addition to creating a stable relationship for the brand, overall activation has resulted in volume growth of 5% in the top 20 markets.
BuzzFeed native ads
Native ads or sponsored content often blur the line between ads and editors, which is all anger among advertisers. BuzzFeed, one of the leaders in the field, was founded by Jonah Peretti in 2006 with the premise that it can reliably produce content. BuzzFeed now generates 7 billion views from 200 million unique visitors per month. Advertisers rush to Buzzfeed because their ability to create sponsored content reaches a 30% -80% social rise, a measure of their toxicity. How does BuzzFeed achieve this level of independence? Jon Steinberg, former president of BuzzFeed, explains, “There is a lot of creativity [in content production], but the system takes over publish once the articles. We control during takeoff, but while it is in the air, it is on autopilot, driven by an algorithm. “The company effectively utilizes insights from the data that allow algorithms to feed the winners and to starve the losers.
These examples have one thing in common: Knowledge from the data comes from focusing the laser on a business problem rather than shooting in the dark in the hope of discovering a hidden truth. Indeed, there are situations in which detailed information recognize data patterns about opportunity productivity, but most of the benefits from data come from pursuing well-defined problems.
From: Adam Kleinberg, Rishad Tobaccowala and Sunil Gupta