Leveraging Data to create a win-win-win for everyone!

“We don’t know what it’s yet. We don’t know what it can be.”

This is what Mark Zuckerberg, played by Jesse Eisenberg said to his CFO in the movie "The Social Network" when the latter wanted to monetize Facebook with ads.

Facebook was the ultimate online hangout back when it started. The only way the founders could keep it “cool” and “fresh” as if it never played any kind of ads.

And so the social media behemoth changed the business model other online networks were using. It created the biggest online congregation. They didn’t sell to the users. They sold to the advertiser. They created a huge database of those online and signalled to those who wanted to sell to their user base;

"Hey come along, we have the people you want to sell to. Just make sure the users don’t get irritated by your ads. Here are a ton of rules we want you to follow. And in return, we will give you access to the data which can help you get to the right people at the right time!"

They monetized data and created a win-win-win situation for all parties involved. The users, the company and the advertisers.

Fast forwards to 2019, today. Each company is trying to leverage social media. Facebook gave rise to the revolution that changed the very face of marketing. Data has largely changed the way one conducts business. It has impacted sales and marketing to a degree that was unprecedented prior to this.

Here are four ways that companies are leveraging data:

IMPROVE CUSTOMER ACQUISITION AND RETENTION:

A large amount of data available is great. But it is available for all, even your competition. But a brand’s ingenuity can help in improving customer satisfaction, retention, and acquisition. In 2015, Coca-Cola strengthened its data strategy by building a digital-led loyalty program. The data from such programs helps the brand to in keeping its online content relevant to the customer’s tastes. This keeps the brand engaged with its most vocal users.

HELP MAKE BETTER PRODUCT:

Netflix used an enormous amount of big data in creating its super hit TV show “House of Cards”. In short, the executives saw that those who liked David Fincher directed films also had a penchant for political dramas and loved the actor Kevin Spacey. So, they used this relationship in designing their product, a political TV show directed by Fincher with Spacey playing the president of USA. It was a smash hit. This is a huge success of practical usage of big data in product development.

DATA FOR TARGETED ADVERTS:

Again, let’s take up Netflix. It has over 100 million subscribers today in numerous nations. The company collects huge data. Basically, Netflix goes through your past search and watch data, and recommends to you the shows you are more probable to watch. This data is used to give them insights on what interests the subscriber most. Not only this but also, as per your view history the thumbnails of the shows change. This amount of granular data collection is very favorable for brands using the platform for running ads.

RISK MANAGEMENT:

Financial institutions have a huge potential to incur losses. Big data helps one analytically predict the possible trends the market can take. There are numerous banks and institutions now that conduct real-time risk analysis to limit possible losses.

In the current global scenario, investing in data is the most important aspect to focus on. In the 21srt century Data truly is the new Oil and Soil.