Chapter 3 - The Next Thing Is Big Data
This week, I read chapter three of "Loyalty 3.0” (Paharia, 2013) by Rajat Paharia. Chapter three is titled "The Next Thing Is Big Data." Big Data plays a huge role in loyalty and marketing as a whole.
First, let's discuss why using Big Data can be an asset to your brand. One way is that using Big Data helps a brand understand its audience better. In marketing, knowing who your target audience is is key. When you use Big Data, you are able to take a deeper dive into this and learn about the personal behavior of your consumer. When you know more about the behavior of your consumers, you are able to offer them more of a personalized experience with your brand. If consumers have a more personalized experience, they are more than likely to establish a good relationship and loyalty with your brand. According to a case study conducted by Deloitte, they "found that 80% of consumers surveyed prefer brands that offer personalized experiences". (Rohan Raj Shrivastav, 2024)
Next, let's look at different ways that data can be used in the consumer space. The first way is through an "In-store behavior analysis". The benefit of this is that a "real-time navigation analysis can provide fascinating insight into customer behavior." (Paharia, 2013, p.54). An example of this would be to examine footage of how a customer would move about your store, their preferences, and their interactions. The next way would be "recommendation engines." Dealing with this, the book states that "businesses can use big data to predict things you might be interested in." (Paharia, 2013, p.55). An example of this would be teh recommended items that you may like while you are online shopping When you online shop and make a purchase the company uses big data analytics to know what you have ordered in the past, so they are able to make existing recommendation to you to purchase again. This big data tactic always personally works on me when I am shopping online with Abercrombie & Fitch.
When it comes to marketing and dealing with actual people, there are always some challenges that may occur. When you are dealing with people, their habits, purchases, and emotions, you must keep ethical considerations in mind. You must respect the privacy of others, while also trying to find the best way to showcase your brand to them.
In conclusion, Big Data can be a great tool for building your brand as a whole. It allows you to know your audience better, form a deeper relationship with them, and to grow in loyalty and your success as a whole. When dealing with Big Data though, it is always important to remain ethical and true to your brand's mission and values.
Well, that's all for this chapter. Now onto chapter four!
See you next time!
Word Count: 472
References:
Rajat Paharia. (2013). Loyalty 3.0: how big data and gamification are revolutionizing customer and employee engagement. Mcgraw-Hill Education.
Rohan Raj Shrivastav. (2024, July 12). The Symbiotic Relationship Between Brand and Customer Experience. Convin.ai; Convin. https://convin.ai/blog/brand-and-customer-experience#:~:text=Customer%20experience%20directly%20impacts%20how,values%2C%20increasing%20trust%20and%20loyalty.
