How can big data improve customer experience

The days of mad men sitting around deciding on the next big ad simply based on what they think is interesting are gone. When the internet was first launched, not much changed between 1991 and 2004. In 2005, however, big data took center stage to assist business intelligence, launching the next revolution of marketing.

Big data is the culmination of information from the internet and includes three major types:

• Customer data: The information about the customer, including their demographic to their shopping behavior.
• Financial data: The KPIs that help budgeters decide on the success or failure of a campaign and the potential for cash flow.
• Operational data: The internal workflow that searches for ways to be more efficient and reduce costs.

In this article, we will dive into the influence big data has on the customer experience, the tools you can use and how to use the information you collect correctly.

How big data and the customer experience connect

In the early days, data collection started with website traffic, IP addresses and gated content. This information helped (and continues to help) marketers understand how often their customers were visiting their site and where they may be located. But, unless the customer signed up for a newsletter or requested to download a gated whitepaper, information was limited.

On-site cookies and the influx of social media have allowed businesses to not only understand who their customers are but also what they want, their interests and behaviors.

The term “customer journey” was developed to describe how customers shopped before they decide on a purchase. Realizing that customers go through a research and comparison process before making a purchase changed how marketers approached advertising. This new approach made it clear that brand loyalty was quickly becoming based more on a company’s reputation and references rather than recommendations from the business itself. 

The focus shifted from companies pushing products and more toward catering to the customer experience. The customer experience is how a shopper or client interacts with a business and decides if that exchange meets their expectations.

How to use the data you’ve collected

Big data uses the technology of the internet of things (IoT), the network of connected devices that collect and share information, to automatically build customer profiles. There are four types of customer experience data to be aware of as you develop your marketing strategy. These include:

1. Basic or Identity Data: The base-level information you might collect like name, email, income, LinkedIn, social media, or industry.
2. Engagement Data: How your customers interact with your brand organically or inorganically, such as click-through rates, hot spots, store navigation and so on.
3. Behavioral Data: When your customers navigate through your store or your website, their behavior after can help you gain incredible insight into the when, where and how of advertising.
4. Attitudinal Data: After a customer purchases something from your store or leaves your venue, it’s typical to send them a survey about their experience. The information you collect from the survey is called attitudinal data. This can be pulled from online comments as well. 

Ways in which big data use IoT to create better customer experiences include: 

• Tracking supply chain movement: Customers can more easily track their orders and have more realistic expectations for when an item will be delivered. It also allows businesses to communicate more effectively when an item may be delayed, merchandise is running low or a product is totally out of stock before a customer makes a purchase.
• Enhancing business performance and uptime: Sporadic or failed maintenance is now replaced with self-aware technology that can notify a professional of when it will need replacement parts or fixes due to predictive maintenance analytics. In this way, customers can rely on consistent business outcomes.
• Real-time personalization: Based on your customer profile (which is filled with your social media preferences, shopping habits and even personal style), business algorithms can offer you hyper-focused suggestions ranging from tools you may need for work, seminars and, of course, retail shopping recommendations.
• Satisfying in-store experiences: With WiFi marketing, even in-store experiences have stepped into the digital transformation age we’re in right now. Brick-and-mortar stores are now optimized to match customer shopping behavior. Customers can receive personalized promotions as they shop or walk through a venue, or even an automated optimized walking route recommendation if the system detects congested areas.

IoT and big data analytics have assisted not only businesses’ optimization and networking strategies but also customers’ experiences and expectations. However, with the collection and sharing of information, customers have not always felt comfortable with the movement.

Developing safe data practices

In August of 2021, T-Mobile announced that a data breach affected 40 million customers with cyberattacks. The cost of not actively protecting customers’ data could be their loyalty and potentially millions of dollars in damages. According to a survey by IBM, a data breach in 2021 cost a business an average of $4.24 million.

One way to resolve this problem is to adopt centralized networking like SD-WAN, which has a higher bandwidth, network visibility and safer programming. You should also integrate a proactive, zero-trust approach to data collection that stores information in redundant silos, duplicates data, and utilizes disaster recovery colocation.

Benefits of using big data in your marketing scheme

Meeting or exceeding customer expectations and developing incredible experiences for your shoppers comes with a host of benefits. Customer loyalty occurs when a shopper repeatedly visits your company and store instead of choosing another competitor. Building customer loyalty is based on creating incredible value for your clients through positive customer experiences such as consistency, communication and ease of use.

Zendesk’s Trends Report found several reasons to focus on customer loyalty and building positive customer experiences:

• 90% of loyal customers will spend more with businesses they trust.
• 76% of customers say that a bad customer experience will cause them to turn to a competitor.
• 64% say they will recommend a business to someone they know after a good experience. 

Big data has been around for a while, but the benefits are continuously growing as marketers hone their skills in data analytics. Here is a breakdown of some of these benefits of diving deeper into big data.

Developing a customer relationship

You may have had an idea of the type of customer you want to attract, but it’s exponentially more important to know who your customers actually are. Their interests, shopping habits, demographics, income, location, and so on could surprise you. Getting to know your customers can help you engage your audience in ways that are meaningful to them.

Optimized budgets

Similar to guessing how much product you will need and budgeting for marketing spending, big data can give you more precise information that can save you time and money. As you build on each piece of information, big data and IoT customer analytics can help you better predict trends and budgets more accurately.

Informed and successful marketing campaigns

Big data allows you to collect, analyze and segment customer information so you can target different types of customers and provide them with personalized experiences. This could include offering exclusive deals or products that you know a specific type of customer will like.

Telesystem’s network and IoT solutions

Getting ahead of the competition and staying there takes not only focused marketing efforts but agility as well. Telesystem’s network of IoT-connection solutions such as smart cameras, WiFi Engagement & Analytics, SD-WAN networking and more can help you target your best clients and improve customer satisfaction.

The digital transformation has pushed marketers and businesses toward adopting flexible marketing tactics and technology that is constantly changing. Knowing what to pay attention to and how to read the data you collect can sometimes feel overwhelming. But, with Telesystem’s IoT and WiFi Analytics solutions, there is nothing you can’t do with the insights you’re gaining.

Jumping into the digital transformation age we’re in right now takes a partner who can grow with you. Request a quote from a Telesystem professional today and see the ROI you’ve been looking for.