Having a wealth of data at your fingertips will help most companies gain a competitive edge. But, too much data can be overwhelming and in some cases useless. RICHARD MULLINS, MD of Acceleration shares 4 ways that marketers can use data to better shape their campaigns.
Data – and lots of it – is perhaps the single most important consequence of the shift from analogue marketing to digital marketing over the past 20 years. Marketers today have a wealth of data, much of it real-time or near real-time at their fingertips – including their own CRM, web analytics, ad tracking, and transactional data as well as external data sources such as social media, government databases, 3rd party data sources and market research.
Sure, marketers have always used information such as point of sale transactions, market research, and direct mail responses to inform their decision-making, but today, they have unprecedented quantities of data to draw on to shape their campaigns. It’s not just the volume of data that makes it such a challenge and opportunity for marketers. It’s also the variety of the data – structured and unstructured data from internal and external sources – as well as its velocity – the rapid pace at which data is being created.
Faced with this deluge, CMOs need to think more about how they will put the data to work and less about the underlying technologies. Here are a few of the ways that big data can be leveraged to drive real business outcomes:
More intelligent and granular customer segmentation
Marketers can look for patterns in data that can help them to refine their customer segmentation strategies so that they can deliver more personalised experiences to consumers. With rich data about customers’ behaviour and spending patterns, they can create sophisticated messaging and offers that are highly relevant to granular and profitable market segments.
They can also understand what keeps customers from different segments coming back for more, and ensure they give customers what they want, when they want it.
Because companies such as airlines, retailers and hotels operate on razor-thin margins and serve price-sensitive customers, smart pricing decisions can make an enormous impact on profitability.
With insight into customer behaviour from their own system and pricing data from external sources, organisations can optimise pricing for different customers and transactions. They can thus avoid losing a potential customer by pricing too high while minimising the danger of pricing too low and leaving potential profits on the table.
Get more bang for the media planning buck
With access to well-structured data, marketers can be far more discriminating about how and where they allocate digital advertising budgets. Before spending their money, they can ensure that they’re targeting the right people. The likes of Facebook, for example, can offer targeting options that go much further than the basics of age, location and gender. After they spend their money, marketers can track results by a wide range of metrics; for example, conversions or profitability of customers acquired through different channels and continue to enhance their marketing efficiencies.
Bridging the gap between the offline and online worlds
Data isn’t just about the Internet – the reach of digital also extends into the physical world. In future, marketers can be expected to make more use of geolocation and contextual data (with consumers’ permission, of course) to track customers’ behaviour in their stores and to target them with relevant information on their mobile devices, through near field communication devices (NFC). Even more possibilities will open up as connected cars and homes become a reality – the Internet of Things (IoT) will create new opportunities for data-driven customer engagement. Companies will need to start aligning their business strategies, structures and technology to the customer, the data and speed of personal relevance.
When will we stop calling them phones?
If you don’t remember when phones were only used to talk to people, you may wonder why we still use this term for handsets, writes ARTHUR GOLDSTUCK, on the eve of the 10th birthday of the app.
Do you remember when handsets were called phones because, well, we used them to phone people?
It took 120 years from the invention of the telephone to the use of phones to send text.
Between Alexander Graham Bell coining the term “telephone” in 1876 and Finland’s two main mobile operators allowing SMS messages between consumers in 1995, only science fiction writers and movie-makers imagined instant communication evolving much beyond voice. Even when BlackBerry shook the business world with email on a phone at the end of the last century, most consumers were adamant they would stick to voice.
It’s hard to imagine today that the smartphone as we know it has been with us for less than 10 years. Apple introduced the iPhone, the world’s first mass-market touchscreen phone, in June 2007, but it is arguable that it was the advent of the app store in July the following year that changed our relationship with phones forever.
That was the moment when the revolution in our hands truly began, when it became possible for a “phone” to carry any service that had previously existed on the World Wide Web.
Today, most activity carried out by most people on their mobile devices would probably follow the order of social media in first place – Facebook, Twitter, Instagram and LinkedIn all jostling for attention – and instant messaging in close second, thanks to WhatsApp, Messenger, SnapChat and the like. Phone calls – using voice that is – probably don’t even take third place, but play fourth or fifth fiddle to mapping and navigation, driven by Google Maps and Waze, and transport, thanks to Uber, Taxify, and other support services in South Africa like MyCiti, Admyt and Kaching.
Despite the high cost of data, free public Wi-Fi is also seeing an explosion in use of streaming video – whether Youtube, Netflix, Showmax, or GETblack – and streaming music, particularly with the arrival of Spotify to compete with Simfy Africa.
Who has time for phone calls?
The changing of the phone guard in South Africa was officially signaled last week with the announcement of Vodacom’s annual results. Voice revenue for the 2018 financial year ending 31 March had fallen by 4.6%, to make up 40.6% of Vodacom’s revenue. Total revenue had grown by 8.1%, which meant voice seriously underperformed the group, and had fallen by 4% as a share of revenue, from 2017’s 44.6%.
The reason? Data had not only outperformed the group, increasing revenue by 12.8%, but it had also risen from 39.7% to 42.8% of group revenue,
This means that data has not only outperformed voice for the first time – as had been predicted by World Wide Worx a year ago – but it has also become Vodacom’s biggest contributor to revenue.
That scenario is being played out across all mobile network operators. In the same way, instant messaging began destroying SMS revenues as far back as five years ago – to the extent that SMS barely gets a mention in annual reports.
Data overtaking voice revenues signals the demise of voice as the main service and key selling point of mobile network operators. It also points to mobile phones – let’s call them handsets – shifting their primary focus. Voice quality will remain important, but now more a subset of audio quality rather than of connectivity. Sound quality will become a major differentiator as these devices become primary platforms for movies and music.
Contact management, privacy and security will become critical features as the handset becomes the storage device for one’s entire personal life.
Integration with accessories like smartwatches and activity monitors, earphones and earbuds, virtual home assistants and virtual car assistants, will become central to the functionality of these devices. Why? Because the handsets will control everything else? Hardly.
More likely, these gadgets will become an extension of who we are, what we do and where we are. As a result, they must be context aware, and also context compatible. This means they must hand over appropriate functions to appropriate devices at the appropriate time.
I need to communicate only using my earpiece? The handset must make it so. I have to use gesture control, and therefore some kind of sensor placed on my glasses, collar or wrist? The handset must instantly surrender its centrality.
There are numerous other scenarios and technology examples, many out of the pages of science fiction, that point to the changing role of the “phone”. The one thing that’s obvious is that it will be silly to call it a phone for much longer.
MTN 5G test gets 520Mbps
MTN and Huawei have launched Africa’s first 5G field trial with an end-to-end Huawei 5G solution.
The field trial demonstrated a 5G Fixed-Wireless Access (FWA) use case with Huawei’s 5G 28GHz mmWave Customer Premises Equipment (CPE) in a real-world environment in Hatfield Pretoria, South Africa. Speeds of 520Mbps downlink and 77Mbps uplink were attained throughout respectively.
“These 5G trials provide us with an opportunity to future proof our network and prepare it for the evolution of these new generation networks. We have gleaned invaluable insights about the modifications that we need to do on our core, radio and transmission network from these pilots. It is important to note that the transition to 5G is not just a flick of a switch, but it’s a roadmap that requires technical modifications and network architecture changes to ensure that we meet the standards that this technology requires. We are pleased that we are laying the groundwork that will lead to the full realisation of the boundless opportunities that are inherent in the digital world.” says Babak Fouladi, Group Chief Technology & Information Systems Officer, at MTN Group.
Giovanni Chiarelli, Chief Technology and Information Officer for MTN SA said: “Next generation services such as virtual and augmented reality, ultra-high definition video streaming, and cloud gaming require massive capacity and higher user data rates. The use of millimeter-wave spectrum bands is one of the key 5G enabling technologies to deliver the required capacity and massive data rates required for 5G’s Enhanced Mobile Broadband use cases. MTN and Huawei’s joint field trial of the first 5G mmWave Fixed-Wireless Access solution in Africa will also pave the way for a fixed-wireless access solution that is capable of replacing conventional fixed access technologies, such as fibre.”
“Huawei is continuing to invest heavily in innovative 5G technologies”, said Edward Deng, President of Wireless Network Product Line of Huawei. “5G mmWave technology can achieve unprecedented fiber-like speed for mobile broadband access. This trial has shown the capabilities of 5G technology to deliver exceptional user experience for Enhanced Mobile Broadband applications. With customer-centric innovation in mind, Huawei will continue to partner with MTN to deliver best-in-class advanced wireless solutions.”
“We are excited about the potential the technology will bring as well as the potential advancements we will see in the fields of medicine, entertainment and education. MTN has been investing heavily to further improve our network, with the recent “Best in Test” and MyBroadband best network recognition affirming this. With our focus on providing the South Africans with the best customer experience, speedy allocation of spectrum can help bring more of these technologies to our customers,” says Giovanni.