It’s vital that marketers get a firm grasp of Big Data & AI if they are to deliver successful strategies and activations in the post-pandemic ‘new world’.
Have you ever wondered how impactful personalised marketing experiences actually are? Do they really make a difference?
They certainly do.
77 percent of consumers have chosen, recommended, or even paid more for a brand that provides a personalised shopping experience[1].
Consumer experience (CX) expectations have never been higher. 76 percent of consumers expect companies to understand their needs and expectations[2]. So what can brands do to meet such high demands in the ‘new world’ or ‘the New Normal’?
As a starting point, it’s imperative that brands truly understand their customers and how they behave – and that can only truly be achieved through excellent use of Big Data & AI.
Use Big Data to get to know your customers in the new world
What motivates individuals or groups of consumers to make purchasing decisions? What do they like or not like?
At what point in their journey are these consumers most likely to make a purchase? And how can a brand help them not only complete a single purchase, but also add to their shopping cart and become loyal, repeat customers?
Of course, qualitative and quantitative surveys that tell marketers about their customers have been around for a long time – but these methods pale by comparison with the enormous power that Big Data & AI can now give today’s organisations.
Imagine being able to recommend a product to a customer because you know – on the basis of previous online shopping behaviours, searches and preferences – that it could be perfect for an important forthcoming date. A gift for a loved one’s birthday, for instance, or a new dress for a special occasion.
Having rich strains of knowledge of this kind makes it so much easier to delight customers and meet them at the right point in their purchasing journey.
It’s the sort of knowledge and insight that brands and retailers of the past could barely even have dreamed of being able to access and apply to their strategies. It’s only possible now thanks to the power of Big Data & AI. And as we enter a new world defined by fast-changing consumer behaviours, Big Data & AI will become even more important.
Burberry’s high-end approach to Big Data
Luxury British clothes brand Burberry is enjoying exponential growth in China and Southeast Asia thanks to Big Data & AI.
Burberry’s analysis of this market found that more than 80 percent of online shopping takes place on a smartphone or mobile device in China and around 70 percent of luxury purchases are influenced by online interactions[3].
The company used this knowledge to create intelligent social media campaigns and tailor communications that will generate better engagement with customers. A smart move, considering that 70 percent of customers worldwide say that seamless online interactions positively influence their final buying decisions[4].
Burberry also uses Big Data & AI to get to know its customers better and elevate the omnichannel customer experience by making personalised product recommendations based on data that customers voluntarily share through the brand’s loyalty and reward programs.
When a customer enters a store, sales assistants will be alerted via their Burberry-issued tablets and be able to make recommendations based on the customer’s previous purchases or social media behaviours.
Burberry’s investment in data-powered personalised customer management programs has resulted in a 50 percent increase in global repeat custom[5]. And its powerful, data-driven approach will stand it in good stead as it looks to navigate its way through the post-pandemic new world.
Matching the organisation to customer needs
Big Data & AI also gives organisations the kind of bird’s eye view that allows them to reshape their structures and optimise supply chains.
The more they know about their customers, the better position organisations will be in to make the best decisions, whether that be in regards to improving products or stock management.
And the better their understanding of the nuances of their markets and how they are behaving, the better prepared organisations will be to recalibrate their operations and put the right people, processes and tools in place.
From a personnel perspective, Big Data & AI will enable business leaders to spot capability gaps and invest in tailored training that will lead to better performing and happier staff.
The advantages that Big Data & AI gives organisations will be vastly improved decision-making that will inevitably lead to increased effectiveness, efficiencies and profitability.
Too few business leaders understand Big Data
Big Data could give organisations a huge competitive advantage – but only if they know how to put it to good use.
Although many business owners and CEOs have introduced Big Data into their operations, very few know how to use it effectively.
Too often, Big Data ends up becoming siloed because a CEO or senior management team hands over responsibility to a certain department – IT, for instance – rather than involving themselves directly in implementing data approaches across all operations.
What this means is that data-driven strategies and initiatives don’t get out of first gear, because too few people in the organisations understand enough about data or have the capabilities to be able to use it.
Ultimately, organisations miss out on great opportunities and fall behind their competitors because they don’t have a strong enough data culture.
In conclusion – learn H.O.W to use data effectively
In what is a new world of unknowns, Big Data & AI can play a huge part in improving customer targeting, customer experiences, customer retention, risk management, supply chain, stock management, marketing campaigns and even product development.
What incredible power to have at your disposal – but only if you know how to use it properly. The importance of this capability will grow in the new world, as brands and retailers try to work out how their customers will behave.
Please contact us if you would like to learn more about our H.O.W Big Data & AI capability building program, which is designed to give business leaders all the practical knowledge they need to maximise growth and productivity with data.
This article was written and created by the eBusiness Institute team.
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Sources
[1] https://www.nosto.com/blog/product-recommendations-examples/
[2] https://www.salesforce.com/research/customer-expectations/
[3] https://techwireasia.com/2019/04/how-burberry-is-leveraging-technology-to-lead-in-the-digital-age/
[4] https://www.salesforce.com/research/customer-expectations/
[5] https://www.forbes.com/sites/bernardmarr/2017/09/25/the-amazing-ways-burberry-is-using-artificial-intelligence-and-big-data-to-drive-success/#b40be7f4f63f
