How to predict consumer behavior with Big Data and AI.
BY: EMMANUEL URIAS
How to predict consumer behavior with Big Data and AI
Over the years, companies have made use of effective marketing strategies such as monitoring social media and other online platforms to reach out to consumers and find out how best to serve them. Now that more than enough data has been collected from these sources, there arises the need to make use of it, for instance, to predict consumer behavior days and even months from now. Anticipating consumer needs is made possible through Big Data and advancements in Artificial Intelligence (AI).
What is Big Data?
It is basically data that is too huge in size and complex to be processed and analyzed efficiently using traditional methods. This data is also growing exponentially with time. Consumer data on social media is categorized as Big Data. Big Data is characterized by its volume, variety, velocity, and variability.
Big Data and AI
Forecasting consumer behavior is realized through merging Big Data with AI. According to predictions from Forrester, there will be increased adoption of Big Data and AI among 70% of businesses globally; this is a 51% increase than in 2017. Let’s get into how Big Data and AI can predict consumer behavior.
The advancements in AI, analytics, and machine learning allow companies to forecast what consumers will be excited about, worried about, or need in the future, future being from 24 hours to even 12 months from now. One example is the Deloitte’s Blab tool used by Deloitte-owned creative agency Heat. This intelligence tool mines data from over 50,000 sources, for instance, social media platforms and the news, and from that predicts themes and topics that will characterize what consumers will be talking about in 72 hours. The tool has shown 70% accuracy. With such information, the enterprise creates a strategy to customize its services in line with the upcoming trends before they even take off. The head start created by Big Data and AI enables the agency to capture cultural moments and capitalize on them in real time.
Decision making is no longer based on guessing or inaccurate surveys and studies conducted on selected groups of people. The progress made in Big Data analytics using AI simplifies companies’ decision making processes in real time. Big Data can be structured, unstructured, or semi-structured, and in these forms, it can be difficult to interpret effectively by the human mind. AI systems use algorithms to break down and make sense of Big Data into actionable insight which contributes to a more mature decision-making process by businesses.
Social media is growing into a significant tool for monitoring customer needs, satisfaction, dissatisfaction, and overall behavior. Big Data and AI better customer experience by predicting what they will want in the near future. Companies can easily enhance a product or service, do away with it, or introduce a new and better one altogether all based on the information gathered from AI analytics. Big Data and AI yield more relevant and creative solutions for consumers before they even know it. They are certainly a must-have for modern businesses today.