"Implementing Data Driven Marketing through Business Intelligence Tools: The Good – the Better and the Best – "
This White Paper is aimed at understanding how business intelligence is impacting the remit, success and evolution of digital marketing across the globe. With marketers capturing more and more consumer data, it is crucial for them to use the right business intelligence tools to analyze it.
We focused on the strategies, practices and functional technologies being utilized by marketers and digital teams in managing their customers and how their organizations can realize the potential of these next- generation capabilities
Business Intelligence is closely aligned with sales analysis and reporting therefore companies are evolving over the use of business intelligence to not only understand, predict and influence the behavior of customers but also to plan, evaluate and monitor their supply chains with the ultimate goal of driving performance improvements across businesses.
However, the million dollar question that arises is why we need these technologies in the first place and to get the answer we have to tinker our minds towards the impact of digital disruption and marketing as a function and corporate growth engine.
The onset of fourth industrial revolution build on digital revolution has shaken the fabric of what it means to be in business today. The new era of intelligence based technologies has arrived that is radically transforming the way we work, live and relate to each other.
No single individual or employee of an organization across any industry or sector is safe from its impact least of all the marketer. The recent industrial revolution in the form of digital evolution has led to another complementary revolution – The rise of the experienced economy and the customer as the key to competitive advantage.
Business Intelligence offers a 360 degree view of customers to help decision makers better understand who they are, what they need and what they may do in the future. Business Intelligence can help to examine customer and channel “value” from multiple perspectives and by understanding the relative value each customer due to which focus is placed on marketing efforts to those with the most profit potential. The hurdle is as is how to arrive at processes and in discovering issues with the data.
Digital Marketers who are not technical savvy may be overwhelmed by business intelligence tools. Marketers should not dismiss their domain knowledge when modeling data with only 45% of marketers agreeing that they are realizing the potential of new customer technologies.
Business Intelligence is touching every aspect of the way marketing is done internally from how a marketing team works and how they collaborate across the organization; to the way they understand their customers and to take action on those insights. In the CMO’s recent State of the CMO research, reported that marketers are increasingly gaining both a direct and indirect responsibility for digital strategy and delivery.
About 60% of the respondents during the survey were found to own their organization’s digital strategy that is well ahead of their IT counterparts and divisional business unit heads. This 4th industrial revolution has brought to the marketers a hoard of technologies that promise in assisting them in engaging with their prospective customers better. The marketers are actively purchasing and striving to utilize these technologies to improve their marketing strategies.
Digital and information based technologies are transforming the way the entire organizations interact with customers across the buyer lifecycle, how they produce and deliver products and how they service and innovate around them. At a high level, Business intelligence fosters Enterprise Performance Management or EPM through technology and applications that are designed to help organizations in:
- Better understand, predict and influence the behavior of their customers
- A Better plan, evaluate and monitor their supply chains or operation areas
As per this white paper, about 50% agreed or strongly agreed that their businesses had successfully adapted or transformed to the new digital economy. Organizations are spending as much as 60% of their revenue acquiring the goods and services needed to support their business.
Such large procurement budgets and reliance on numerous suppliers and hundreds to thousands of products can make business goals becoming increasingly complex, particularly when there is limited visibility to procurement expenses or the actual performance of vendors. By using Business Intelligence tools, organizations can improve their sourcing abilities. Designing a great business intelligence dashboard can massively improve the value of organizations gets from the data.
"The Top Ten Priorities of Marketing Function in this age of Business Intelligence-"
The top ten priorities of Marketing Function for digital marketers in this age of 4th Industrial Revolution are-
- Digital Transformation
- Increase Brand Awareness
- Identifying and delivering new sales opportunities
- Enhancing customer loyalty and advocacy
- Transforming the customer facing digital offering of our brands
- Marketing automation implementation
- Improving customer retention
- Deriving value from data to inform decisions
- Transforming the market organization
- Increasing customer satisfaction
Investment in Big Data by organizations during past 5 years -
Firms have undertaken significant investment in Big Data initiatives during the past 5 Years.
As per the market survey reports, 37.2% of executives report their organizations have invested more than $100 Million on Big Data Initiative within the past 5 years with 6.5% investing over $ 1 Billion.
Companies have invested in Big Data during the past 5 Years as in terms of percentage as shown in this table-
|Total estimated investment in Big Data during the past 5 years|
|Greater than $1B||6.5%|
|$500M - $999M||4.8%|
|$100M - $499M||25.9%|
|$50M - $99M||6.5%|
Organizations have successfully adapted to the new digital economy or achieved a category disruption during the past 12 months. As such digital transformation remains the top priority of marketing functions.
It is estimated that a quarter of organizations are incorporating one or a few business intelligence products across their company horizons as per the Information Week’s Analytical BI and Information Management Survey. For a business intelligence to succeed it should be implemented from higher levels of management hierarchy with tools that are standardized and process that works for all departments. This helps in having the entire organization involved from the beginning so that everyone’s input is taken into account.
How the power of Business Intelligence is boosting businesses –
The growth of Business Intelligence and analytics markets is expected to touch $20 Billion by 2019 with more than half of the business leaders believing that big data will dramatically change the way they do business. By 2019, 90% of large organizations will hire a Chief Data Officer or CDO. The basic feature of the Business Intelligence tool is its ability to hand over the required information to the business users.
Organizations are required to make decisions at an increasingly faster rate or pace therefore today’s business intelligence tools help decision makers access the information they need without having to first go through their IT departments or specifically designated data scientists. the creation of data categories that did not exist when the information came from its source.
The use of Business Intelligence or BI is enabling organizations to bridge the gap between product or service and sales with the most successful companies using the data provided by consumers in analyzing and predicting buying trends thereby improving customer relationships. For instance, Amazon – The Retail Giant is using BI tools to mine the consumer data such as purchase and shipping location to tailor its advertising algorithms to provide more efficient customer services.
The other function of Business Intelligence is to increase the understanding of the ramifications of various organizational processes. The entertainment streaming service provider such as Netflix collects data on the viewing habits of its millions of consumers. It uses intelligence to curate database of shows and movies that will perform well with a global audience. Starbucks – the reputed Coffee House is utilizing Big Data to know about new regions across the globe for running its businesses with profitability by analyzing the information on traffic, area, demographics and customer behavior.
The industry experts are all talking about the ways in which data and BI have become the essential tools for all business owners with the information becoming the fuel of the 21st century and analytics being the combustion engine.
Research firms like Gartner are also predicting the importance of Business Intelligence for decision making purposes. Surveys suggest that about 10% of businesses will become profitable by depending on “productizing and commercializing” of the data they collect by 2020.
Forrester – A popular research firm has discovered that enterprise data still remains an unexplored resource for organizations and it is reported that mere 40% of enterprise data is ever used to enhance operations. BI applications in a majority are still built by a shadow of IT processes with a huge number of organizations (63%) still building most (more than 50%) of their BI applications based on desktop tools such as spreadsheets.
To better leverage Business Intelligence organizations need to know about the three major trends such as-
- Small Businesses are using Self Service Business Intelligence in the form of self-service BI solutions that allow access to anyone who wants to evaluate the data that drives their business. Organizations can leverage internal data by collecting it from multiple processes or departments that makes it difficult to aggregate in a way making sense for the users.
- Data for visualization is another dimension of business intelligence with companies providing quality data visualization solutions that are geared towards being accessible to even non-technical members of the team.
- Security for data is a major concern for organizations when more people begin to access and share the data that may result in proprietary data to leak and more potential points for external attacks.
Gartner – A leading research and advisory firm predicts that by the end of 2018, 20% of organizations would be looking to develop sound data security governance plans to protect themselves from data breaches on the cloud. BI systems in large organizations usually create security challenges when not managed correctly.
An effective Business Intelligence empowers the CEOs and Managers of organizations to ask crucial questions and then arriving at answers that would help them in making better decisions about allocating limited resources, to refine processes and to place people or employees/staff at appropriate places.
Can Digital Marketers and Business Intelligence work together?
For digital marketing firms Business Intelligence tools are the biggest assets that they can leverage upon. By incorporating BI powered solutions they can stay ahead of their competitors. Initiatives taken by software service providers such as Microsoft by making its product Power BI user friendly and easy to configure is helping organizations to access data sources from popular services without the need to develop custom web services.
As per the Gartner’s Customer 360 Summit Report, nearly 85% of interactions would be automated by 2020. At last, digital marketers are turning to business intelligence tools to make good use of the data available on the web and by using these tools, these marketers are effortlessly analyzing a large volume of data in a lesser time frame and converting their insights into comprehensive reports.
With real time analytics, companies can market a wide range of products on multiple social channels and can know where to raise or lower their advertisement spending. With top business intelligence tools that offer real time data, digital marketers can learn about the latest happenings in their niche.
Through BI tools, marketers can gather a range of information like social comments, shares, mentions and likes thereby utilizing this information to gain insights on their target segment’s online behavior. Social media analytics tools is a type of BI tool that collects information like mentions, comments and shares this data across popular social channels. Organizations as such can use this information to learn about their prospective customer behavior.
Conclusion – So, What Next
Business Intelligence is the next leap forward for how organizations can approach for both marketing and customer engagement and we are only at the very beginning of how they are to be applied practically. So in the end, we can say that whatever may be your business or sector irrespective of whatever technology, strategy, culture or customers, there is always going to be the change required and it takes inherent strength and courage and a learning mindset to use these BI tools.
About the Author –
Mr. D.V.V.Satyanarayana Murthy is a Content Writer with Contentkraze.com. He has 9 years of experience that ranges across Content Development, Digital Marketing and Content Marketing. Mr.Murthy played multiple roles throughout his career including delivering website content for reputed digital marketing, BPO, real estate, infrastructure and eCommerce firms such as Talent Logic, Emblix Solutions, SVC Ventures, GPR Buildtech, Sastek Academy, and Indians health.com.
He has worked for clients across multiple markets including North America, Asia. He holds a Master of Foreign Trade Degree and is responsible for content writing projects for Vouch Solutions. He can be reached at email@example.com and firstname.lastname@example.org
About Vouch Solutions
Vouch Solutions is an international organization with prodigious vision to ameliorate organizations across globe by providing time-tested, formidable solutions & strategies, regarded as go-to source for Business intelligence, Digital Marketing, Information Technology, Creative Graphics & Consulting services. Visit us online at www.vouchsolutions.com or email us on email@example.com.