In today’s digital age, gathering and analyzing vast amounts of data has become increasingly important in driving business decisions forward. Big data has been a buzzword for years, and companies’ efforts to collect, store and analyze this data has been never-ending. While big data has its own importance, there is another type of data that businesses need to consider, and that’s the thick data.
Thick data, unlike big data, primarily focuses on qualitative data that uncovers the rich storytelling around the reasons people behave the way they do. It helps explore the emotional responses, cultural trends and social changes that big data could not capture. In other words, thick data offers companies unparalleled insights into customers’ needs, desires and motivations, allowing them to create more customer-centric products and services.
Let’s understand this with an illustration. A hotel chain collects data on customer satisfaction scores. They see a decline in the room-service satisfaction score. While big data allows them to analyze numerical data such as the time of day or the average rating of the menu items, thick data provides context around the negative feedback. In-depth interviews with customers reveal that they want to experience local cuisine in their hotel. Thick data helps businesses make informed decisions that ultimately boost customer satisfaction and word of mouth.
In an age where customers crave connection and meaning, thick data helps businesses create a unique value proposition. By relying solely on big data, businesses run the risk of losing touch with the customer’s perspective. Hence, it’s important to blend both big and thick data and strive for a healthy balance.
For instance, Proctor & Gamble identified that diaper sales were declining in Western countries. The company relied on thick data to discover a critical insight: while western cultures prioritize independence and personal responsibility, Japanese culture values the idea of group happiness. As a result, the brand launched “Pampers Charity Pack” in Japan, where a donation was made to a children’s charity for every pack sold.
In conclusion, big data has a vital role to play in the business world, but it’s not enough on its own. Thick data supplements this by exploring the meaning behind the data points and by providing more empathetic insights about the customer. By blending both the data types, businesses can have a more complete picture of their customers’ profile and behavior. This way, they can design more effective strategies to engage with the customers and build relationships that foster loyalty and retention.
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