The rise of big data means companies and organizations can now understand who their customers are, and what they desire, better than ever before. It also allows companies which deal in the financial sector to trade using a vast range of different signals. However, could big data finally make the marketing and finance departments of businesses like each other? Marketing and finance are widely different disciplines, but the impact of big data could be bringing these different domains closer together.
“Big data” is a way of expressing the increasing speed and volume at which information is created and collected by businesses. Big data is a result of the rise of the internet and mobile technology, which has allowed luxury marketers to interact and connect with customers in completely new ways. For example, the type of data analyzed by a luxury brand might include keywords used to search for its products, the types and number of social media interactions which involve a certain product, and the geographical location of the customers involved. Further data can also be gathered using online surveys and special promotions which require the customer to register their details.
It is the job of the marketing department to use big data to establish the direction of their next campaign or product launch. Being able to quickly and accurately understand big data is a critical function of a modern marketing department. The information about the reaction to a certain product or campaign, the demographics of those who are engaging with the brand, and the loyalty of customers to the brand can be fed into a Customer Relationship Management (CRM) system. Then, optimized content is transmitted to customers who have shown a certain pattern of interest in the past. For example, if a customer has previously expressed interest in a certain campaign or luxury product, but not completed the purchase, messages about this product could be targeted at those customers to encourage them to complete the sale.
The finance departments of luxury brands have traditionally used data such as profit, loss, and the sales data of individual lines or products. This has allowed luxury brands to establish which marketing campaigns have been successful, while also helping them to decide which products are still viable, and which should be withdrawn from the market.
However, in the same way that big data has vastly increased the volume and speed of data available to the world of marketing, it has revolutionized the amount of data available to the financial departments of luxury brands. Companies wishing to make decisions about which products to promote, and which to pull from sale, can now use computer-driven algorithmic systems to crunch a vast range of information, including real-time news feeds, company data, social media trends and other news and data sources. This algorithmic analysis relies on a system similar to a CRM; it carries out an analysis of patterns of the financial and media data, to decide the best course of action to reduce losses and increase profitability for the brand.
Big data can help both marketing and finance departments carry out a speedy analysis of a large volume of data. This improves the relationship between the departments, as it allows the marketing manager to quickly identify, and respond to, any concerns or issues raise by the finance department about the volume of sales or the profitability of the company. This coordination allows for better interdepartmental working, which helps to better promote the brand and its products while also increasing market share.