So the title of this blog is so uninviting and overflowing in people emails that I will have to do Push marketing to make people read this .But with all our clients in almost all industries – from hospitality to financial services to retail – I never leave some strategic meeting where people wonder about the true strategic value of Big Data and get questions like “Is it really that new? “You know us oldies in business and technology, we have seen it all and someone just came up with a new buzz.” “What is this hoopla about the elephant called Hadoop?”
Well, like all things in life there are always perspectives and point of views. The usage of a process or technology to effect the top line growth and operational efficiencies is up to the culture, intent and execution mastery of organizations.
So Big Data from social media impacts a lot of business functions but greatest is in the front end of any business – your customer relationship management (CRM) processes and systems. It implies a fundamental shift in the way organizations interact with prospects, customers, employees, partners and other stakeholders. Leaders must take the first critical step of changing their mindsets and revising some long-held beliefs about building and managing customer relationships.
The traditional 4 Ps of marketing (famous framework by Jerome McCarthy) has a new dimension – PEOPLE. The technology has enable people to talk to anyone within the organization or outside.
- Outside the organization there are Customer Peer – Customer peer conversations (Opinion sharing, Discussions, Idea sharing, Complaints, Questions, Jokes, Gossip, News, Etc.) for Information sharing, Relationship building. These are “Off Board” Outlets – (e.g. Facebook, Twitter, YouTube, etc.) Public Internet Outlets that organizations do not control, but can choose to participate in
- At the company – customer touch points there are Customer – Employee conversations (call centers, chats, forums, Sentiment Monitoring, Brand association monitoring, etc. for Information sharing, Relationship building. These are “On Board” Technologies – that can be integrated into your public facing website to engage your constituents. Examples include discussion forums, ratings and reviews, idea solicitation communities, blogs, etc
- Within the company walls there are employee – employee conversations (Opinion sharing, Questions, blogs, Etc.) for Information sharing. Hopefully nothing like NSA goof-up. “In Board” Technologies – that leverage social media techniques to facilitate collaboration and knowledge sharing between an organization’s internal employees.
So Big Data especially in the Entertainment & Hospitality business is surely evolving and rapidly for usage. Hotels, travel agencies, airlines, vacation clubs, and other industry players are unlocking the power of Big Data to dramatically improve products and services, thereby enhancing their competitive position and benefitting customers.
- Enhanced revenue management: Hotels recognize that data analytics are helpful in establishing the optimal price for rooms and ensuring that as few as possible are empty. Hotel chain Marriott takes this approach further, using big data for price optimization in restaurants, catering, and meeting spaces too.
- Better relationships with hotel guests: When customer data is aggregated, instead of being fragmented across a hotel’s various divisions, the analytical insights lead to better marketing and customer service.
- Targeted Marketing Promotions and Targeting is being focus even more to enhance extra marginal revenue.
But a major caveat to using all this is – data quality. I was on a Consulting panel recently where a good friend mentioned that companies are like true organisms – with a brain, muscle, fat etc. But the data is truly the blood that keeps this organism alive and running. I loved this analogy and carried it further in my head. Bad data can spoil the functions. Also polluted data (aka too much alcohol in the blood) can be devastating. Some threshold is OK. But that’s why we have data czars (aka police) catching folks doing DUI (aka management making wrong decisions under the influence of bad data). Now with sudden infusion of more diluted blood into the stream, how can we use the RBCs (red blood cells) properly. The elimination of a lot of White Noise in this big data to get to the little clusters of information wealth is where value is. The things to note on Big Data are:
- User-generated content is often triggered by emotion
- Amplified via the “viral effect”
- Impact cannot be stopped or undone
- Does not follow the conventional rules of commerce
- Forces companies to act in shorter cycle times
- Fast and truly global