Open the Data
Because you can’t manage what you can’t measure.
When we hear talk of Data, many of us get goosebumps, especially if we’re from the arts. If we add the adjective “Big” in front of it, things get worse by the minute; then comes the fear generated by something that seems to be so big that we can neither encompass it nor measure it. And nothing could be further from the truth; Big Data is big in size, yes, but it is also big in terms of the incredible value it can bring to your business. But only if you know how to measure it and make the most of it
Big... what? An overview of Big Data and its importance for handling large volumes of information
OK, you’ve heard about it a thousand times, but… do you really know what Big Data is? If we go by its “literal” definition, Big Data it is a term that describes a large volume of data which is either:
- Structured: ordered in terms of format, size and length, e.g. spreadsheets, databases, etc.
- Unstructured data that is disorganised and has no value until it is sorted, identified and stored. For example, videos, audios, images, PDFs, etc.
- Semi-structured: non-regular information that we cannot manage in a standard way (e.g. HTML, XML formats, etc.). This data would be a mixture of the two previous ones.
The trick is to know what to do with all this information so that it contributes to making the right strategic decisions. The first thing is to know where all this data comes from
What are the types of Data according to their format and origin?
One of the most complex things about Big Data is the dizzying pace at which it is evolving. In the past there were few sources of information, whereas today there are a multitude of resources from which to draw increasingly more data. The speed at which we receive this data is also growing rapidly, making it increasingly difficult to decide which data is useful and which is not.
Although it may not seem like it, data is everywhere:
- In large transactions: business data facilitating customer information that is extracted, for example, from a CRM (Customer Relationship Management) platform; sales inventories, obtained through an “Enterprise Resource Planning system” (or ERP); billing records and call records, etc.
- On social networks and websites: content that is acquired from transactions, visits or sessions on the web and interactions or impacts on social networks such as LinkedIn, Facebook, Twitter, Instagram, etc.
- In biometric prints: information obtained from retina scans, fingerprints, genetic or facial recognition, etc.
- In our day-to-day activities as human beings: we generate data when we call a call centre, write emails, sign electronic documents, leave voice memos, use credit or debit cards…
- In machines (Machine to Machine – M2M): these are technologies that exchange information in data format between two remote machines. A good example is the smart meters used by water or gas companies to measure consumption; they obtain certain data which they then monitor and use to make frequency or voltage estimates
Without data, you are just another person with an opinion
William Edwards Deming.
American statistician, university professor, consultant and pioneer of the Total Quality concept.
The importance of Big Data in Inbound Marketing. Where do you start?
Before going into assessments, it is useful to break down the seven V’s of Big Data or, in other words, the seven characteristics or magnitudes implicit in this concept. They are:
- Volume: quantity of data generated.
- Velocity: in real time, the speed with which this data is generated, stored and processed.
- Variety: the different formats in which data is recorded.
- Veracity: the authenticity of the data.
- Viability: the feasibility of companies being able to generate reliable opportunities with the data collected.
- Visualisation: the way in which data is presented to make it readable and understandable.
- Value: undoubtedly the most important of all. A piece of data in itself is worthless. Even just collecting a large amount of data does not generate added value. The value of data lies in generating the best decisions based on it, for which it is essential to have the help of applied technologies and professionals capable of interpreting the data.
So far, so good. Big Data is really very BIG but, if we talk about how important it is for a business (and not just any business, but “my business”), how important is it?
At this point, we can introduce the very popular TOFU, MOFU and BOFU, or Top, Middle and Bottom of the funnel, acronyms that are used to refer to the phase of the conversion funnel to which our Inbound Marketing strategy is oriented. Organising data around one of these stages facilitates classification, interpretation and optimisation.
But let’s take it one piece at a time:
Getting a taste for TOFU (Top of Funnel)
Leaving aside the TOFU joke, of course we’re not talking about the oriental food prepared with soya beans, but about the top of the funnel where our task is to create content to attract as many visitors as possible. Visitors who don’t quite know what they want yet.
At this point, we want to whet their appetites to taste the “starter” of your funnel. How do we do that? By analysing how many people know about you, how many visits or interactions your communications generate, awareness and interaction rates, retargeting list growth rates, etc.
Controlling registration from the MOFU (Middle of Funnel)
In the middle stage of the funnel, or MOFU, users are already clear about what they want, so we can make a deal: give them more substantive content in exchange for information (what we call “lead generation”). Now is the time to make yourself noticed and ensure you are considered as a good option to meet their needs. At this stage, the important thing is to know the needs of our buyer personas to prepare them for the sale.
Our task here is to find out which users have gone from being visitors to subscribing or registering, see what works best to capture their interest, etc.
BOFU (Bottom of Funnel) or how to make the end just the beginning
We come to the narrowest part of the funnel; the key piece that closes a sale. Only those users who are genuinely interested in a product or service reach this point. Converting them into customers will depend on putting all your efforts into creating key, personalised content.
Here it is key to analyse the KPIs (Key Performance Indicators), ROI (Return on Investment) and engagement (between brand and audience) to adjust strategies.
In future posts, we will explore this data analysis and the importance of taking it into account at every stage of the funnel from the very beginning of creating a solid strategy for our business.
In short, it is important to create different content at each stage of the funnel (TOFU, MOFU and BOFU) to accompany the user from the moment they detect a need until that need is satisfied. And, of course, measure, measure and re-measure all the data recorded.
Tangible uses of Big Data to make business decisions
... without data, how can we reach definitive conclusions?
Thomas Alva Edison.
American inventor, scientist and entrepreneur with more than 1,000 registered patents.
Big Data is among the best tools we can use for our marketing campaigns and strategies. If we still haven’t convinced you of its importance, this compilation of the best uses we can make of it will make you an unconditional fan and have you shouting from the rooftops “long live Big Data”:
- It will help you to develop tailored communication strategies aligned with the preferences and needs of your customers.
- It will make it easy to segment your business: we can see how customers are evolving and know what their buying and consumption habits are, as well as how they behave with our brand.
- From the segmentations, you will be able to see in detail how your customers change and how you can hunt for more sales opportunities.
- It will allow you to create a unique data structure that will allow you to develop a more accurate business vision.
- You will be able to take better real-time decisions.
- You will be able to detect and prevent customer churn and fraud by observing patterns of behaviour.
- You will also be able to more accurately predict how your business is likely to do, without having to toss a coin.
- You will save money on your advertising investment by optimising your campaigns.
And this is only the beginning. By having Big Data as your best ally you will be able to create strategies which guide your customers through the entire buying process to make sure they complete it successfully. The key is to have the right methodologies and technologies in place to help you extract, analyse and transform data into useful information that will tell you when and where to listen to your customers so you can get there rapidly. At Genetsis we have all the tools and we know how to help you. Will you let us?
Genetsis Group
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