Big data 'boosts insight and sales'

A new report could make difficult reading for those in the direct marketing industry who are still questioning the concept of big data after it revealed firms using large data-sets not only gain greater insights, they also boost sales.
The Forbes Insights study, entitled “The Big Potential of Big Data”, is based on a survey of senior marketers in the US, including corporate and advertising agency executives. It was carried out on behalf of Rocket Fuel.
The report found that heavy users of big data were much more likely to produce useful insights about consumers than light users or non-users. But more importantly, according to Bruce Rogers, chief insights officer for Forbes Media, heavy users of big data are also more likely to report gains in sales.
The more frequently companies felt they were making sufficient use of data, the more likely they exceeded their goals. Some 92% of companies that had always or frequently made sufficient use of data said they had met or exceeded their goals, while only 5% that were making sufficient use of data said they were falling short of their goals.
Many executives believe they are using big data enough when in fact they are not, the study shows. The majority of both ad agencies and non-agencies said that they were frequently or always making sufficient use of data in marketing decisions. However, only about one in ten non-agencies managed more than half their marketing with big data, and one third of agencies used big data in more than half their initiatives.
The study claims systems that generate data quickly and that can account for changing consumer behaviour (for example, those that utilise machine learning) are likely to become increasingly important to marketers. Approximately one quarter of respondents called them “critical to the success of their marketing”, while more than 43% said they would be increasingly important for most marketing initiatives.