October 3, 2016
With big data providing more insight into buyer behavior than ever before, it's no surprise that startups are changing the way they invest in marketing. But what exactly is the availability of big data helping them do?
We asked 10 entrepreneurs from Young Entrepreneur Council (YEC) the following question: how is big data going to change the way startups invest in marketing now and going forward?
Their best answers are below:
1. They Can Explore New, Unseen Areas
More companies may invest in new areas that they never knew existed until big data broke down and segmented the data in a different way than previously seen. This may redirect marketing dollars to areas that a company was unwilling to try before but now sees the potential. – Angela Ruth from Due Cash
2. They Can Have an Objective in Mind
Big data allows startups to analyze their customer base before ever launching a marketing initiative. When startups launch their initial marketing plans, they will have a data-driven objective in mind when tailoring these campaigns. – Patrick Barnhill from Specialist ID, Inc.
3. They Can Focus on Quality Over Quantity
With the targeting capabilities available through data, startups are going to be able to better speak directly to the most qualified audience. Their marketing efforts will increasingly become more efficient and effective. Additionally, more of their marketing processes will become automated, allowing startups to focus more time on developing their product and company. – Jarrett McCraw from Mighty
4. Big Data Can Act as a Sales Team
Big data has changed the world. Now it's time you let it shift your business model. Your door-to-door salesmen are now your ad words, sponsored posts, website redirects, etc. Be strategic when creating your company ad words and the right people will come looking for your services. – Andrew Namminga from Andesign
5. Marketing Services Can Be Outsourced
Data is a commodity, especially in the B2B world. The companies that have direct access to massive databases, reliable data streams, and the ability to segment are now capitalizing on that access, to the benefit of startups. Instead of having to generate all of your own new leads and sales prospects from scratch, you can now outsource that work to a third-party agency and jumpstart your pipeline. – Rob Bellenfant from TechnologyAdvice
6. They'll Have Better Performance Benchmarks
Knowing how well your marketing initiatives perform against peers in your industry and direct competitors can be enough to motivate you to work both harder and smarter. Big data has the potential to provide businesses with major insights into how well (or poorly) their marketing campaigns perform so they know where to increase and decrease their budget allocation to maximize ROI. – Firas Kittaneh from Amerisleep
7. They Can Invest in Data Scientists
Startups will invest and recruit data scientists prior to early growth to establish data lakes and source third-party big data sets for effective marketing decisions. The capital costs, options, and expense of data scientists will ideally be offset by efficiencies in marketing and associated budgets. As a graduate of MIT and an early pioneer of big data, these tools have been essential to our growth. – Michael Gleason from InMyArea.com
8. They Can Shift Toward Analytical Tools and Databases
The accessibility of big data and the proliferation of tools to analyze these vast amounts of information will make traditional marketing and PR companies sink or swim. Businesses know their target demographic better than third-party companies, so they will license analytical tools or databases from tech firms so that they can best tailor their own marketing efforts. – David Mainiero from InGenius Prep
9. They Can Invest in Analytics Education
Big data is powerful, but it's nothing if you don't know how to read and analyze it correctly. Moving forward, startups should invest in analytics education for their marketing team or hire a big data specialist who can help them efficiently utilize big data. It's important to filter out which data is relevant and useful versus distracting. – Jared Brown from Hubstaff
10. Consumers Will Expect More From Them
Consumers expect transparency from brands, especially as they give up more and more information about themselves to those brands. By giving brands permission to know more about them, consumers will expect brands to market to them with more specific and relevant offers. Brands should create more engagement and start conversations at every touch point. – Marcela De Vivo from Gryffin
The answers above are provided by members of Young Entrepreneur Council (YEC), an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.
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