Navigating the treacherous waters of Big Data

“Not everything that counts can be counted, and not everything that can be counted counts.” This quote, often attributed to Albert Einstein, originated before the evolution of data-driven marketing and Big Data. Yet now, more than ever, we should reflect on what it means in the context of how our marketing decisions are made.

Steer clear of the shallow waters
The first part of the opening quote reveals one of the most inconvenient truths of analytics; that as much as we strive for a world where everything is measurable and all decisions can be based on real-time, infallible data, this is not always the case. Take ‘Social Media ROI’ for instance; a term that pervades marketing industry commentary. In many circumstances, the data required to attribute sales revenue confidently simply isn’t there and no amount of white papers and positive thinking can fill that gap.

In these cases, it’s important to understand the options, the level of commitment needed to attribute sales data to your activity and the accuracy of the results quickly. Be prepared not to do it at all. Yes, really. Perhaps controversial and something that doesn’t fit well with cultures that only approve projects based on hard commercial benefits, but better to focus your efforts on what you can do than stretch data to the point at which it loses credibility.

Instead, change the focus to measure other things where the data is more readily available, but will still indicate how well you are doing against your objectives. Have I got good reach across my target audience compared to other channels? Does my target audience even use this social media platform? How many people are engaging with my content compared to my competitors? You may find that some of these measures, once properly benchmarked and tracked, along with a good dose of marketing nous and common sense, will lead to a well-informed social media investment and strategy.

Beware the sirens
The second part of the quote provides a counter-perspective on data to the first, yet is equally important. We are told that Big Data is all around us; that we must collect it or we’ll be hopelessly behind the curve and lose huge amounts of revenue against our competition. It seems almost every day a new vendor, seminar or white paper springs up promising to deliver the solution to our Big Data problems. If anything Big Data (the media campaign) is an unintentional mirror of big data (the real stuff) itself; in that it creates more noise, more pitfalls and requires more precision to navigate to what actually matters. The amount of data available does not necessarily correlate with its value – not everything that can be counted counts. Would we expect a prospector to pan the ocean simply because there is more water there?

Yet the solution to such concerns is similar to that when you don’t have enough data. Align the data you need to your strategic objectives, assess the options in collecting it in terms of cost, value and accuracy and make the decision accordingly. This could be Big Data, small data or somewhere in-between data.

Not only is the opening quote important in its intended meaning, but also in that it existed well before the advent of social media and Big Data. It’s a reminder that these principles hold true now, as they did when CRM was marketing’s ‘the big new thing’ and also before the quote itself was conceived.

We live in an environment where certain parties obfuscate some of these truths of data and analytics, whether it is in the pursuit of selling technology or simply amplifying the hype to appear to be leading the conversation.

Plot your course before setting sail
As someone who is an advocate of data-driven decision making, I’m aware that I’m focusing on the fallibility and dangers of data, rather than lauding its value and simplicity. Also, that I’m saying that it can’t be taken for granted that data can drive every decision, but we must use our experience and judgment as well.

Well, I’m prepared to be honest about this as, despite the limitations of data, on balance, far more decisions are made by instinct alone when data could have improved that decision. It just takes the foresight to collect the right data and ensure it is used in the correct way by people with the right skills. There is often a significant gap between what value can be added with data and what happens in reality. So the opportunities can be huge in closing that gap.

If you’re a business that is focusing on the Big Data question and how it might revolutionise your marketing, I advise you to take stock of what your objectives are and look before you leap. Do you have a clear connection between your strategy and the data? Are you only planning to collect the data you really need (regardless of size)? Do you have a clear roadmap? Do you have the expertise to evaluate the options and steer the course? If you can’t provide a confident yes to these questions, make sure you work on rectifying that before you spend considerable time and money on solutions. Otherwise you may find yourself another wreck stranded on the rocks.

By DMA guest blogger David Lloyd, Data Planning Director, TMW