Big Data Analytics Applications - Big Data Analytics: Disruptive Technologies for Changing the Game - page 24

coniguration service that switches a smartphone to silent mode every time the
subscriber enters the movie theater and switches back to normal ring tone once
the subscriber leaves the movie theater. Prepaid wireless providers are engaging
in location-based campaigns targeted at customers who are about to run out of
prepaid minutes. These customers are the most likely to churn to a competitor
and could easily continue with their current wireless provider if they were to be
directed to a store that sells prepaid wireless cards.
These scenarios raise the obvious data privacy concern, which is a hotly
debated topic worldwide. We will spend some time in the technical sections
talking about data privacy, governance, and how consumer data can be protected
and used only as permitted by the customer. As expected, there are many avenues
for abuse of customer data, and data privacy must be engrained in the architec-
ture for an effective protection of customer data.
3.6 Micro-Segmentation and Next Best Action
Automation has provided us with tremendous opportunity to use sensors to
collect data in every step of the customer-facing processes, such as click streams
in the use of a website. Sensor data gives us an opportunity to establish behav-
ioral patterns using analytics. The early evolution was in use of analytics for
segmentation. The original segmentations were demographic in nature and used
hard consumer data, such as geography, age, gender, and ethnic characteristics
to establish market segmentations. Marketers soon realized that behavioral traits
were also important parameters to segment customers.
As our understanding grew, we saw more emphasis on micro-segments—
speciic niche markets based on analytics-driven parameters. For example,
marketers started to differentiate innovators and early adopters from late adopt-
ers in their willingness to purchase new electronic gadgets. Customer experience
data let us characterize innovators who were eager to share experiences early on
and could be more tolerant of product defects.
In the mid-1990s, with automation in customer touch points and use of the
Internet for customer self-service, marketing became more interested in personal-
ization and 1:1 marketing. As Martha Rogers and Don Peppers point out in their
book The One to One Future , “The basis for 1:1 marketing is share of customer,
not just market share. Instead of selling as many products as possible over the
next sales period to whomever will buy them, the goal of the 1:1 marketer is
to sell one customer at a time as many products as possible over the lifetime
of that customer's patronage. Mass marketers develop a product and try to ind
customers for that product. But 1:1 marketers develop a customer and try to ind
products for that customer.” 16