Big data is used to optimize pricing and boost profit margins. Online stores often change their prices to meet market demand and clear old stock. They raise the prices when costs increase and lower them during the holidays when the demand is high. But they don’t pick just any price; using retrospective analysis and data gathered from multiple sources, they go for a price the consumer is more likely to pay.
At the same time, they also consider their costs. Big data allows companies to get every detail about cost. They can find information about the cost of raw materials and transportation to and from the manufacturer. Based on vehicle logs, they can find out how much fuel is used to deliver those items. Every expense is related, and learning about those costs can help businesses cut inefficiencies.
All this information helps marketers find optimal price points. The end price is the one most likely to maximize the company’s profits given the current market conditions and competition.
Big data gives marketers information on recent campaigns from competitors. The marketer can compare those campaigns to find similarities and differences. The marketer can also try to understand why the competitors went for certain trends. Could there be something that the competition knows and your company doesn’t know? Big data helps marketers find those informational and research gaps. As a result, they can launch better marketing campaigns.
In the future, big data will continue being used by marketers. There will be artificial intelligence tools to assist marketers in deciphering the cluster of information much faster than the current Hadoop and Spark systems.