Big data, the name sounds simple, but actually, its nature is complex. When previously customer data was collected for analysis purposes, it was regarding the sale of a product or responses to surveys, etc. Now data is so diverse and ranges from geolocations, feedback, reviews to browsing information, click-through rates, online transactions, etc. Currently, there are so many parameters to analyze to get numerous insights, but it can also confuse us.
Usually, a customer wants brands to connect with them, and big data can help us. If we know their buying behavior, we can offer more tailored deals to the customers in hopes of delighting them; this can result in customer engagement, retention, and loyalty. These are the most desirable qualities of a consumer to a marketer.
In banking, big data plays a significant role; we try to understand customers’ intentions, buying behavior, and where they go if they don’t buy our product. We can have a person’s data with different accounts(cards, mortgages, loans, savings account, etc.) to understand the personality of the client and offer better deals to them.
If you have the geolocation of a person and assuming that the person has permitted us to use his/her geolocation, we can notify them of what credit card offers we have nearby. It will get them to use our card and will result in more revenue.
The lifetime value of a customer is the sum of revenue; the person will give us over their lifetime. Since banking needs are different in different stages of life, big data is a crucial player to understand the life stages and requirements of the client.
But having this large chunk of data can cause various problems. We should know what data to collect, what parameters to use, and how to use different analytical tools that can give us the best insights. We should also know how to convert these insights into decisions because if you cannot act upon it, then it’s of no use.
We can use Big Data for learning about consumers till the time they don’t feel their privacy is compromised, so companies must be careful.