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Big Data & Predictive Marketing

Posted: May 5th, 2020

Big Data & Predictive Marketing
Read ‘Big Data And Predictive Marketing’ then write one-page synopsis of it. 12font, Times New Roman, Single space.

Big Data & Predictive Marketing
Big data refers to the large size datasets that cannot be processed and stored by the traditional database. It can only be produced by computer and mobile devices, sensors, networks, financial transaction, applications, videos and social media. It can generate up to 2.5 billion gigabytes per day.
Characteristics of big data include; Volume-data is gathered from various sources, velocity-data streams at a faster rate and it needs to be processed on time, variety-data is available in many formats i.e. numeric structured and semi structured, variability-there is a lot of inconsistency in the data flow hence can be difficult to process and Complexity-Data comes in very many sources hence there is need to link and match them into a certain format. Business organizations used big data to in making decisions, marketing products and facilitate. Financial institutions use big data to detect the cases of fraud. For retailers, big data techniques enable them to improve the customer experience and determine the prices.
Predictive marketing is the process of extracting data from the existing customer information so as to identify market patterns and predict future trends in business.
It utilizes collection of data and analyzing them in software programs so as increase probability of sales. The business wise marketing decisions made based on predictive marketing data tend to be more successful than decisions that do not utilize it. Nowadays, big data and predictive marketing are utilized by both large and smaller firms. Software keeps track of spending habits and also analyzes information collected through customer feedback to better identify products that a customer is likely to buy. This experienced is customized for each potential customer. Some examples of companies that utilize such predictive marketing techniques include; Walmart & Stitch Fix.
The major challenge firms face with utilizing big data and predictive marketing is how to extract maximum value from the data they acquire.

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