Internet of Things & big data are closely related as IoT helps to measure and report data so that all these big data can be transformed into information that can be used to understand trends, patterns and consumer behaviours.
All the actions that we take online would leave a footprint, and all these data captured would benefit the business if they know how to use it.
For this week’s topic, let’s analyse three pros and cons from the marketers and consumer’s perspective.
Three Marketer’s PROS – Big Data & Internet of Things:
1. Analyse Consumer Purchasing Habits
Marketers would be able to gain insights about the consumer’s purchasing habits such as the frequency of them purchasing a product, how information search is conducted before they make a purchase and what is the determining factor to convert a consumer.
An example would be that brands could analyse how frequent customer make a purchase of a particular product using transaction data and send a reminder email to “remind” customer to stock up on their products when the time comes.
2. Gain Insights on Customer Buying Journey
Google Analytics is a perfect tool for business to analyse the traffic that is generating website visits. You’re able to tell where the website visitors come from, such as through your Facebook, an external partner website etc.
Other useful information would include letting marketers know which pages generated the highest conversion or pages which needs to be optimised (e.g., whether more content is required or the message needs to be stronger) to increase conversion performance.
3. Perform Real-time Retargeting with Ads
Consumers would only want to listen to a message that is relevant to them, and with big data, it allows marketers to utilise retargeting to ensure that the message is being exposed to them at least 3 times based on Herbert E. Krugman theory.
An example is when you visit an online Shopping website such as Zalora, and after leaving, when you visit an external site that is not Zalora, you still see it appearing on the side banners of the webpage.
Three Marketer’s CONS – Big Data & Internet of Things:
1. Not Equipped with Knowledge to Analyse Data
Data would not be useful if the employees are not equipped with the relevant knowledge in the area of expertise. There could be massive data which they need to learn how to analyse it to draw a conclusion after analysing it.
2. Inaccuracy of Data – Neglect Offline Channels
When data is captured, it is only collecting information that is available online. Marketers would not be able to tell if it is an offline marketing communication channel is the one that has triggered the conversion.
An example could be that a consumer may see the in-store A3 Poster and that was one of the determining factors which made her went home to buy the product online.
3. Time Consuming To Analyse
As mentioned earlier, big data are generated on a “real-time” basis which means that frequent tracking is required to ensure that the data analysed is up to date.
If marketers want to ensure that the data are up-to-date, they must follow up very closely with the data analysed to get the latest insight of information to be used for their marketing strategy and this will be time-consuming.
Consumer’s PROS – Big Data & Internet of Things:
1. Get Real-Time Update About Their Online Delivery Status
58% of the Singaporeans shop online at least once a month, and no doubt being able to track their parcel online would give them satisfaction, so that are able to find out where their package is at currently (mainly when you shop online)!
This real-time tracking allows delivery information being conveyed to the customers timely and accurately to create trust in the brand.
2. Driving and transportation at Ease
With real-time data being conveyed to consumers, they are able to navigate at ease using GPS when they are on the road as the update will send signals to the consumers to allow them to be informed about the congested area to avoid.
This is exceptionality important for commuters as they wouldn’t want to be late for work, class or meeting with friends.
3. You See What You Like
As mentioned earlier, big data enables marketers to personalised marketing messages which are relevant to them. This would filter out that promotional information that they are not interested in.
An example is if I’m not interested in Golf, but I see a golf advertisement, the chances of me clicking on it are impossible.
Three Consumer’s CONS – Big Data & Internet of Things:
1. Privacy Issues
When our digital footprints are created, it’s there forever. This means that the organisation can and will have the ability to exposed all the information which you have left online.
Did you know that Google Map tracks every place which you have been to? If this information is new to you. You can now go track and feel “exposed” by Google.
2. Indulge in Impulse Purchases
Marketers will always create a beautiful message to remind you to make a purchase through retargeting that you should not miss out on the “biggest discount of the year”.
During this time, you will realise you fall for these gimmicks (i know I do, guilty as charged). From here you could tell that retargeting works on me 🤣.
3. Potentially Increase Social Stratification
As a lot of our personal information and search behaviours are captured online, and this information would enable the organisation to categorise the consumers in a certain way which may potentially increase social stratification.
Do you have any other pros and cons of big data and internet of things? Do share your thoughts with me on the comment box down below.
Thank you for taking the time to read this blog.