Defining Big Data and its Effect on Your Growth
It’s one of those industry buzzwords that you might have heard but not fully understood: big data. And while it might sound intimidating, there are practical ways to leverage customer insights and intelligence to grow your business. Unfortunately, that data can be exactly as the name implies: big. The sheer size and volume of information can lead you to feeling confused about how you’ll harness the intelligence and use it for growth. By gaining a better understanding of what data is readily available and how to use it, you’ll be better equipped to apply it to your own portfolio growth.
The Gartner Group defines the term “big data” as “high volume, velocity and/or variety of information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making and process automation.” Breaking down the three v’s here helps to put it all into perspective.
Volume: Due to the sheer volume of information, processing is required to break down the data so that it can be applied to the right customers at the right time. One way for the information to be processed is through segmentation, where a company creates criteria to essentially group like terms and behaviors to reveal like customers. That way, marketing tactics are used to target the right group with the right offers, products and services for the best chance of success.
Velocity: Speed is of the essence when it comes to big data. That’s because the world of consumer finance is constantly changing — almost as fast as customer behavior itself. Whether an existing customer is looking to renovate his or her basement or a prospective client has a high propensity to apply for a new home loan, having access to the fastest and most recent applicable data means you’re the first one on the scene and have the upper hand when it comes to creating solutions and competing against other lenders or organizations.
Variety: You need much more than a credit score to predict a customer’s behavior, which is why one of big data’s main advantages is its variety. Not only do you gain access to basic information such as credit score, credit history and employment history, you have other intelligence, too, from investable assets and investment history to utility payments and property data. The result is a more complete customer profile that you can use in your targeted marketing efforts.
Big data isn’t a trendy buzzword — it’s a viable way to increase your efforts and grow your business. By gaining complete customer intelligence, you gain an edge that allows you to cross-sell more effectively, develop comprehensive retention strategies and target and track your marketing efforts. Get the upper hand against competitors with timely and comprehensive information that increases your growth and complements your success.