Big data has transformed the way marketers learn about their consumers and therefore make decisions. According to Forbes, big data helps marketers understand more about consumers' purchase behavior, patterns, and likes and dislikes. However big data doesn't come without its risks. The problem with big data is threefold - good data doesn't automatically correspond to good decisions, vast data collection is a major privacy concern, and the growth of fake followers and bot accounts tests the reliability of data.
Is Big Data Enough to Make Strategic Marketing Decisions?
The Guardian said it best: "the amount of data available does not necessarily correlate with its value – not everything that can be counted counts." Basically all the data in the world is out there but is it all useful? In my experience, I think big data can certainly inform insights but is not yet capable of decision making. Big data can answer the when and where - where on Instagram are my consumers, and when are they on Instagram? But the what and how are not so easily answered by big data. What does my consumer care about and how do I convey my message, are questions that go beyond big data. The best marketing campaigns combine consumer data with human creativity. Spotify and Seamless have done great work by using data on customer's usage habits to humanize their products. In New York City, Seamless used data about what types of food consumers were ordering based on their neighborhood. The executions were witty, engaging, and fostered a sense of community among neighborhoods.
Will Consumers Continue to Entrust Us with Their Data?
The number one concern for consumers is how their data is being used. A 2016 Deloitte report showed that 81% of US respondents felt that they have lost control of how their data is collected and used. Privacy is a big concern for marketers as well, as brands seek to be trusted by their consumers. In today's world, consumers have grown so accustomed to data breaches that they are unlikely to leave a brand even if a company compromises their data. But the trust between consumer and brand erodes and over time this can be impossible to get back. This is the case with Facebook - after the Cambridge Analytica data breach many users kept their Facebook account but the tone in which we talk about the platform has dramatically changed. A recent New York Times article shows that advertisers are thinking twice about allocating money to Facebook due to the company's misuse of user data.
How Many Followers Do I Really Have?
Then comes the issue of fake followers. Influencers boast large followings but have run into problems when their engagement numbers are low due to fake followers. The prevalence of fake followers and bots has impacted social media marketing at large. An American Express report concludes that small businesses with large followings are hurt most by this phenomenon. And because fake followers and bot accounts are so prevalent, the data used to make important marketing decisions can be skewed. Brands may heavily invest in an influencer with a large following only to find out most of those followers are fake. That's why the numbers themselves are not enough.
Big Data is the Foundation, Not the Cherry on Top
Although many experts argue that marketers can no longer make decisions based on intuition or only qualitative research, I believe that intuition is extremely important when handling big data. No matter how much data you have, at the end of the day it is collected by a computer who hasn't personally interacted with your consumers. We are lucky to be marketing in an era where data collection is simple and ubiquitous. There is less guesswork involved in knowing where consumers are and what they're looking for. However an over reliance on data can be just as problematic as not using any data at all. After all, Don Draper was able to make Heinz Ketchup alluring without big data.
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| (Alberto Brea) |
Is Big Data Enough to Make Strategic Marketing Decisions?
The Guardian said it best: "the amount of data available does not necessarily correlate with its value – not everything that can be counted counts." Basically all the data in the world is out there but is it all useful? In my experience, I think big data can certainly inform insights but is not yet capable of decision making. Big data can answer the when and where - where on Instagram are my consumers, and when are they on Instagram? But the what and how are not so easily answered by big data. What does my consumer care about and how do I convey my message, are questions that go beyond big data. The best marketing campaigns combine consumer data with human creativity. Spotify and Seamless have done great work by using data on customer's usage habits to humanize their products. In New York City, Seamless used data about what types of food consumers were ordering based on their neighborhood. The executions were witty, engaging, and fostered a sense of community among neighborhoods.
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| (Liz Loudy) |
Will Consumers Continue to Entrust Us with Their Data?
The number one concern for consumers is how their data is being used. A 2016 Deloitte report showed that 81% of US respondents felt that they have lost control of how their data is collected and used. Privacy is a big concern for marketers as well, as brands seek to be trusted by their consumers. In today's world, consumers have grown so accustomed to data breaches that they are unlikely to leave a brand even if a company compromises their data. But the trust between consumer and brand erodes and over time this can be impossible to get back. This is the case with Facebook - after the Cambridge Analytica data breach many users kept their Facebook account but the tone in which we talk about the platform has dramatically changed. A recent New York Times article shows that advertisers are thinking twice about allocating money to Facebook due to the company's misuse of user data.
How Many Followers Do I Really Have?
Then comes the issue of fake followers. Influencers boast large followings but have run into problems when their engagement numbers are low due to fake followers. The prevalence of fake followers and bots has impacted social media marketing at large. An American Express report concludes that small businesses with large followings are hurt most by this phenomenon. And because fake followers and bot accounts are so prevalent, the data used to make important marketing decisions can be skewed. Brands may heavily invest in an influencer with a large following only to find out most of those followers are fake. That's why the numbers themselves are not enough.
 |
| (Forbes) |
Big Data is the Foundation, Not the Cherry on Top
Although many experts argue that marketers can no longer make decisions based on intuition or only qualitative research, I believe that intuition is extremely important when handling big data. No matter how much data you have, at the end of the day it is collected by a computer who hasn't personally interacted with your consumers. We are lucky to be marketing in an era where data collection is simple and ubiquitous. There is less guesswork involved in knowing where consumers are and what they're looking for. However an over reliance on data can be just as problematic as not using any data at all. After all, Don Draper was able to make Heinz Ketchup alluring without big data.
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| (Daily Mail) |
Your article is a clear example of how you don't need big data to identify the three problems with big data.
ReplyDeleteThe other problem with big data is that it feeds on itself. Like a vicious cycle. The more 'followers' you have the more products seek you, further feeding your 'follower' base. You begin to look like a walking Times Square! Lot of gleaming message and tons of people, but all transient. Your base is tourists, not committed residents.
On a side note, the word 'followers' seems misplaced. Observing the list in your article, 'Watchers', 'Observers', 'Spectators' even 'Voyeurs' may be more accurate descriptors.
Totally agree! On social media, most followers are simply watching. It would be helpful for marketers to know where on the purchase funnel an influencer's followers are - if they are simply looking for awareness it might be ok but if they are seeking purchases this may not be an effective strategy given the cost. Thank you for your thoughtful comment!
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