There are few things in this world that are absolutely black and white. This is a principle that’s long been known and understood by many philosophers and scientists alike. Nothing is certain, truth is relative, and nothing is absolute. These age old philosophies still ring true today and they come into play every day for some. When it comes down to making business decisions, or any big life decision, it can be beneficial to spend time examining the pros and cons before jumping in head first. When it comes to something like data analytics, it’s important to understand the full scope of what’s being brought into the organization. Like with everything, data activation is a two-sided coin.
Data activation is an innovative approach to data analytics that focuses on driving consumer behavior through real-time analytics that inform data-user actions. In other words, data activation empowers the user to take actions which in turn influence consumer behavior in some fashion or another. One good example is audience building. Data activation tools can identify complementary and similar products based on a consumer’s recent purchase. Then the data-user can add that target consumer to advertising campaigns revolving around those like-products.
With an idea of what data activation aims to do, here’s a short pros and cons list to implementing data activation strategies.
Real Time Data to Inform Decisions
One of the major selling points that data activation boasts is the delivery of real-time data-analytics that empower user actions. This brings data understanding and utilization to a whole new level within the context of organizational operations, marketing and advertising, and even consumer messaging. Enabling employees outside the analytics department with real-time data that informs and guides their decisions makes data activation a powerful tool for any organization trying to better connect with their target audiences.
The versatility of decisions that data activation is able to influence within an organization is also an impressive feature. Rather than a single-function-software, data activation empowers a whole suite of features that enable a variety of actions throughout an organization’s entire technological architecture. From building and editing specific groups that compose target audiences, to identifying specific consumer events and creating tasks around those actions, the limits of data activation are just starting to be tested.
As the world continues to advance in the ways of information, science, and technology, there are bound to be more use-cases for data activation uncovered in the coming years.
Automated Tasks and The Value of Being Data-Driven
Automation is a game-changer in the world of organizational operations. From its earliest iterations like that of the assembly line during the industrial revolution, to more modern uses like automatic-email-reminders, and automated automobiles. Data activation aims to bring certain aspects of automation into the world of data analytics. This adds efficiency into the organization and while opening up bandwidth of employees.
Some tasks that can be automated through data activation are sales driven, while others are simply informative. For instance, data activation can empower an organization to automatically contact a consumer a week before their typical purchase cycle with an email campaign geared at next week’s deals. This can all be arranged automatically and actively drives a sales activity.
Of course, it can’t all be roses and daisies, though. One of the main factors to consider when looking into data activation as an analytics solution is the cost. This is very likely going to fall in line with other large-scale enterprise softwares that are geared toward large corporations, but is still a significant variable that needs to be factored into account. On top of the cost of the software and service itself, is the necessity of having an implementation plan. In other words, it might not yet be time to invest in data activation if it isn’t totally clear how it can add value, or which features might be best utilized.
This is an especially important variable for mid-tier organizations that are focused on scaling and growth. With a tighter budget, paying attention to every dollar spent is vital. However, the argument could be made that data activation is well worth the investment for a growing business looking to increase their levels of consumer engagement.
Understanding Consumer Trust
Another major factor to consider when implementing data activation strategies is the impact it will have on consumer trust. In the era of technology and information, data is everywhere. Our digital footprints are all being tracked nearly every second of the day. While this is a generally well-known and accepted fact, it can still be off-putting to a consumer when it feels as though a line of privacy has been crossed.
As such, it’s important to use data activation responsibly and in a manner that will engage your consumers and customers rather than drive them away.