As mentioned in a previous blog post Turning Big Data into Big Opportunity for Financial Services, Big Data typically refers to the storage and management of largequantities of data. As a result, the focus is placed more on the collection of everything instead of identifying what matters. If you are looking for a needle in a haystack, why add more hay?
Data collection and analysis is important, but if you are not able to act on it, what is the benefit from collecting more data? Through marketing that harnesses Big Data (Marketing Big Data), organizations can identify the data that matters and put it into the hands of those who can act on it. Big Data tools for marketing are not designed to replace large data environments and solutions, but to supplement them. Through Big Data tools, marketers can cull insights from vast and disparate data sources and identify signals to transform customer engagements, offering more optimized experiences that drive investment returns.
Obtaining Value From Big Data
In order to realize the benefits of Marketing Big Data, it is important to have a process and tools in place that will take your organization from the collection of various data points to the execution of marketing experiences. Consider the following framework:
- Ingest – Begin with managing the data. Identify the tools and processes needed to collect, connect, and store data points from the various sources.
- Distill – Refine the data through analysis. Automated algorithm may also help expedite the finding of valuable insights.
- Curate – Assemble the insight found while distilling the data into packages that can easily be consumed. This may be through reports for people, or through tools for other systems to use.
- Syndicate – Deliver and publish the insights to the people and systems that need to be aware of them.
- Optimize – Use what you have learned to test and improve. Learn from past work and get a little better each time.
Following a framework will allow you to not only act on Big Data, but also identify gaps in processes or technology in order to maximize the benefit of Marketing Big Data.
What About Privacy?
To date, many companies in the financial industry have remained cautious about delving into big data due to the industry’s strict privacy and compliance regulations. For the companies in this industry, privacy is paramount. If even a small amount of personal information escaped a “data vault,” it could be detrimental to a customer and the institution’s overall brand, including a loss in revenue from decreased business or from regulatory fines.
Since privacy is critical, government agencies heavily regulate the use of personal information for financial services and insurance companies. In addition, many institutions have their own policies in place to further protect and dictate the use of data; those policies can be even stricter than established government regulations. Additionally, institutions in this industry need to put forth the effort to convince regulatory groups that data is used appropriately and to reassure customers that their personal information is secure.
However, personal or sensitive information does not need to be made public in order to use for marketing. Most data sources and customer information lie in secure locations, where modeling and analysis may occur. Anonymous customer segments may be created based on rules and attributes from analysis of known information behind secure walls. Use what is known to market to the unknown.