In the business world, it’s not enough to simply process a transaction or sale and hope for a repeat purchase the next time around. Successful businesses emphasize relationships and truly understanding the customers that they serve. Establishing these networks and customer loyalties involves repeated contact with the customers, knowledge of personal information, and a marketing strategy tailored to individual needs.
Although the relationship aspect of business has existed for a while, the world of Big Data completely reinvents our ability to understand customers. The 1950s traveling salesman’s questions like, "Where does your husband work? Don’t you think you could use my Product X in that new summer home of yours? Where did you buy that scarf – it would look even better with my Product Y!" can be known instantly through data analytics. In fact, this information can be known before even interacting with the customer, which will make your company have an even stronger first impression. Businesses have access to this knowledge by combining their company’s data with third party data.
Third party data provides a more complete view of each consumer, which has many implications for business practices and their enhanced CRM systems. First and most importantly, third party data makes data analysis much richer because businesses have more insight to answer business questions. Understanding a customer’s family life, education, occupation, and interests provides the reasoning behind their purchase behaviors captured in your company’s data. From this external insight, then, businesses can more appropriately target consumers and segment their market based on consumer activities, interests and opinions. They can increase customer retention and improve prospecting efforts with advanced planning through third party data.
Businesses can even offer products more customized to their customers’ need or adjust their marketing programs for current products on the market. With this in mind, businesses must ensure that they approach third party data with scalability and avoid being too specific or general in their analysis. Third Party data opens a world of possibilities for improving business performance, but the bottom line of relationship selling still exists. At the end of the day, the most successful businesses have people who know the "ins & outs" of their customers. Today’s data technologies provide us with the tools to do just that.