Which of the following are the distinctive features of “Big data” being used in Analytical CRM?

Correct option is A

The "Four Vs" — Volume, Variety, Velocity, and Veracity — are widely recognized as the key characteristics that define Big Data, especially in the context of Analytical Customer Relationship Management (CRM). These characteristics allow organizations to gather, analyze, and leverage vast and complex datasets for improved customer insights and decision-making.

1. Volume refers to the massive amounts of data generated from customer interactions across channels.

2. Variety indicates the different forms of data — structured (e.g., transactions), semi-structured (e.g., XML), and unstructured (e.g., social media, videos).

3. Velocity highlights the speed at which data is generated and needs to be processed to enable real-time analytics and responses.

4. Veracity refers to the quality and reliability of data, addressing issues like inconsistencies, inaccuracies, and biases in large datasets.

These features empower Analytical CRM systems to extract actionable insights, predict customer behavior, personalize marketing efforts, and improve retention strategies.

Information Booster:

• Big Data analytics in CRM enables deep insights into customer behavior through real-time processing.

• Volume includes data from CRM systems, social media, IoT devices, transaction logs, etc.

• Variety enhances understanding by combining text, audio, video, and transactional data.

• Velocity supports quick decision-making, important in dynamic marketing environments.

• Veracity ensures that decisions are made based on clean, trustworthy data.

• These 4Vs collectively support customer segmentation, churn prediction, personalized recommendations, and campaign optimization.

Additional Knowledge:

(b) Volume, Variability, Variety, Veracity
While variability (data inconsistency over time) is occasionally discussed, it is not one of the original 4Vs of Big Data. It is considered an additional characteristic by some, but not core.

(c) Valence, Variety, Volume, Variance
Valence (emotional charge) and variance are not recognized characteristics of Big Data in CRM. These terms are more relevant in psychology or statistics, not data analytics.

(d) Variance, Valence, Velocity, Veracity
Again, variance and valence are unrelated to the standard Big Data framework. This option mixes valid (velocity, veracity) and invalid terms, making it incorrect.