For forward thinking leaders, Big Data can lead to even bigger profits. So, partner with the best tools and people you can find, and dive in!
In 2013, an astounding statistic began circulating in the tech and business spheres: 90% of all global data was created over the last two years. It’s as if data had been dormant prior to 2015 and has only just begun to be produced.
In many ways, that’s true. Historically, companies have been able to track only a limited amount of information about their customers, such as names, phone numbers, and previous transactions. Thanks to advancements in smart phones, social media, and e-commerce, we’re now able to track almost every major moment of our lives and turn this information into data.
Businesses now have access to a whole slew of new information about their customer base across many decision points — including their reactions to different stimuli in social media and advertisements.
They have a massive opportunity to better understand how customers make decisions and predict their future behavior when presented with new stimuli. While the customer may not know exactly why he bought a new hat, the business that sold it to him will. New techniques allow businesses to analyze data points over a long lifespan of interactions in order to disaggregate how customers make decisions.
While this influx of data is exciting, it is also difficult to interpret.
Without the ability to interpret the data, it becomes meaningless. That’s where behavioral analytics come in. Much like applying complex root-cause analysis to weather patterns, with the right information, human behavior can be predicted too.
Behavioral analysis aims to understand how and why consumers behave the way they do in order to predict what they are likely to do when presented with new situations. By compiling and analyzing raw data points like clicks, tweets, and online purchases, behavioral analysts can uncover hidden inner drivers. These insights help businesses understand what marketing should be used for individual customers — at the right time and at the right place.