Every consumer swipe and click is a valuable source of data for businesses eager to sharpen their marketing strategies. According to Cheris Chow, associate professor in the Department of Management and Marketing of the Faculty of Business Administration (FBA) at the University of Macau (UM), while quality products and services matter, the effective use of data is just as crucial for marketing success.
Predicting Consumer Behaviour
Before the big data era, companies relied on untargeted mass-media advertisements and skilled salespeople, an approach that is not easily scalable. Today, the popularity of social media and the widespread use of e-payments enable companies to collect a varied array of data, including purchase history, browsing patterns, payment methods, and customer demographics. This rich dataset allows companies to accurately analyse consumer behaviour and create customised marketing campaigns. ‘Search for a city online through a search engine, and your next social media interaction could very well show you an advertisement for flights to that destination,’ says Prof Chow.
Big data models are vital to the marketing efforts of top leisure and hospitality businesses in Macao, according to Prof Chow, a researcher specialising in consumer behaviour and frontline service staff. In contrast, companies clinging to traditional marketing methods not only risk losing customers but also face inefficiencies in their advertising expenditure. ‘In a service-based economy like Macao’s, which is focused on tourism, using technology to keep up with the ever-changing needs of visitors is essential for staying competitive,’ she notes.
While data analytics tools can reveal ‘what’ is happening in the marketplace and assist in creating predictive models, traditional marketing research methods such as experiments and surveys remain indispensable for understanding the reasons ‘why’ consumers make particular choices. The Marketing Analytics specialisation under the Master of Science in Data Science, jointly offered by UM’s Institute of Collaborative Innovation and FBA, is unique in that it encompasses both approaches. ‘The first step is to learn about the current market situation, followed by analysing the underlying dynamics. This enables us to formulate effective marketing strategies,’ says Prof Chow, who also serves as the coordinator of this specialisation.
Prof Chow says that graduates of the Marketing Analytics specialisation can apply their data skills to solve real-world business challenges. For instance, a recent graduate partnered with a leading local e-commerce platform to create a system that identifies the buying habits of customers at risk of switching to a new competitor. This analysis, encompassing hundreds of thousands of customer data points, paves the way for targeted marketing initiatives.
Harnessing Data for Customer Growth
‘Big data tools are fast becoming the standard in marketing, even if there’s a learning curve for some,’ Prof Chow says. ‘Recognising these industry shifts, our focus remains on advancing both education and research in the field. Our goal is to equip industries with the data skills essential for customer retention and growth.’
Chinese & English Text / Davis Ip
Photo / Jack Ho
Source: UMagazine ISSUE 28