Customer loyalty programs, recommendation engines dominate big data usage

New survey of MapR customers shows 40 per cent are using the big data analytics technology for marketing purposes

The appetite for big data projects within marketing functions has been revealed through internal customer polling at the Hadoop specialist technology developer, MapR.

Chief marketing officer at MapR, Jack Norris, said a survey of his company’s customers found up to 40 per cent are using the technology for marketing purposes. This was second only to cost savings at 60 per cent (the survey allowed overlapping responses), and well ahead of fraud detection on 20 per cent.

“We have experience with one of the world’s largest retailers that has tens of thousands of jobs a day being conducted on the platform and 50 different use cases, and these are driving significant results on the big data platform,” Norris said.

A key use for big data is recommendation engines to help customers find what they want or identify things that they weren’t originally searching for.

“A lot of that relies on sophisticated segmentation analysis, understanding individual preferences and then being able to react very, very quickly,” Norris said.

At times, this has also led to the creation of entirely new services, such as the music recommendation engine in the Beats music service, which was acquired by Apple in 2014.

“Beats took a very competitive market segment, where iTunes had been out for 10 years, with Pandora and Spotify and a bunch of services, and had this incredible growth spurt and after six months was acquired by Apple,” Norris commented.

Marketers are also experimenting with loyalty programs that take into account a member’s physical location at any point in time to create specific offers. In some instances, Norris has even seen big data implementations started in fields such as fraud detection, spur use cases in marketing.


4 brands making customer loyalty programs work

“And we have seen a lot of organic growth within our customers where they start in one area and it spurs innovation and development in others,” he said.

According to Norris, much of this activity runs against traditional thinking from the data warehousing and analytics community.

“There you are rewarded for really delving into the questions you are going to ask, the analysis that you are going to do, and spend months figuring out what the precise architecture is, because if you get that wrong then you’ll have a data warehouse that is really inflexible and doesn’t meet your needs,” he said.

“It is kind of the reverse of big data, where you have so much flexibility that you are not penalised for experimenting, and having the data reveal some surprises and directions.”

As a result, many assumptions that led to the creation and rollout and structure of data warehouses are coming under scrutiny.

“The assumption that you have production systems that are separate from analytics happened because Oracle relational databases were being brought down because of the analytics that were being done,” Norris said. “So they separated that our and had an operational data store and then shifted things out, and you waited a day or more before that data was available on the analytic platform.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How service heterogeneity is impacting engagement

Marketers have long known the importance of standardising products to assure quality and consistency. For services, however, standardisation is much more complex.

Dr Chris Baumann

Associate professor, Macquarie University

Kindness matters in business: why the nice guys finish first

A recent 1000-page Royal Commission report on misconduct in Australia’s financial sector revealed hair-raising stories of excessive commissions, rampant mis-selling and charges levied on the dead. So how do you stop a bank from misleading its customers?

Nick Liddell

Director of Consulting, The Clearing

Myer vs. David Jones: Do cyborgs win?

As two of Australia’s stalwart brands in Myer and David Jones continue their respective journeys through troubled waters, it heralds yet another sign of the shifting business environment and shift towards an experience economy.

Tom Uhlhorn

Founder and strategy director, Tiny CX

nice article

meripadhai

5 things marketers need to do to get better in buy in when presenting

Read more

International business is closely related to marketing or marketing activities carried out by the company. According to Gitman and McDani...

Eko Prasetyo Utomo X

Salesforce: The age of the marketing campaign is over

Read more

Back in 1968 Holden began an appeal to customers who have an interest in competition. It did this with the introduction of the HK GTS 32...

Ben Tate

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Your blog post is really good and informative. Thanks for taking time to provide us this useful information with us.Auto wrapping uaeADF ...

Yes Machinery

Image intelligence:10 must-see infographics for marketers

Read more

A debt of gratitude is in order for sharing this marvelous information.I have taken in numerous things from your post

digitech Classes

Lumen CMO strives to make the brand synonymous with anti-ageism

Read more

Latest Podcast

More podcasts

Sign in