Big data is the new buzzword in the business world and it seems like everybody is using it. It’s actually one of the biggest IT trends of 2017. This points to the competitive advantage of both big and small companies using it.
In a nutshell, big data refers to enormous volumes of data which is impossible to analyze with techniques used in the past, such as spreadsheets, database management and software techniques.
Big data includes all the information that is collected throughout a business’ lifetime by surveys, lists, call centers, transactions, sales and financial records. Added to this is all the incoming online data from social media, online purchases, website and mobile activities and online registrations. When everything adds up, databases are increasing exponentially.
Why is big data important?
Big data is important because it speeds up and automates tasks that when done manually are slow and inefficient. Interestingly, big data isn’t about how much data there is, but how you manage it. It is important for this data to be analyzed thoroughly so you get answers about issues regarding cost and time reduction, new product development and smart decisions making. When big data is analyzed, you can get valuable insight into business operations and take action, such as:
- Detecting unusual behavior before it starts affecting business
- Reevaluating complete risk portfolios in a short time
- Resolving failure causes, issues and defects promptly
What is big data used for?
Big data is used to formulate key strategic and operational plans. It helps business leaders seeking ways to become more profitable and innovative. Essentially, big data provides business owners with answers to questions like:
- How, when and why do our customers buy our products?
- What steps can we take to increase brand awareness?
- How do we optimize workforce planning and operations?
- Is it possible to predict market trends and consumer needs?
- What is our next source of revenue?
Still confused by the term big data? Here’s a great explanatory video that covers everything in a nutshell:
How can big data be used to boost sales?
Learning how your business can benefit from big data is definitely worth your time. Marketers believe that it is important for businesses to analyze all the available data, no matter how insignificant it may seem at the time. According to recent studies big data analytics help businesses provide better customer service, increase brand recognition and ensure growth. Here are some ways big data can help you boost sales:
Improve customer experience
By looking at data patterns you can see how you can improve the user-friendliness of your website. For example, if you follow patterns and see during which stage your customers leave the sales process, you might realize that the process is too long or complicated and you can do something about it. Thanks to big data you can make changes that will improve customer experience.
Provide customized promotions
Segment your list so that you can optimize your promotions to different groups of customers. For example, you can promote different products to different groups. This way you can personalize your messages so you can speak directly to a specific type of customer.
Make better decisions
By analyzing big data, you can see customer purchase patterns. For instance, you might find out at which time of the year your customers buy your products or spend most. With this data you can decide and create strategic promotions, marketing campaigns and make decisions that will save you money and time. Also, this a great way to ensure you are not short of products or manpower during your busiest times of the year.
Define and isolate your “good” customers.
Big data can show you who your “good” customers are. What this means is that you can direct your focus to serious and repeat customers that actually buy from you. Open and click-through rates are a good indication, too. Once you define and isolate your good customers are you can work on refining your marketing strategy which will essentially save you e money on promotion and advertising. If you don’t have any data collected, consider sending out a survey to your customers so you can create your target persona.
Develop and improve products based on feedback
If you know what people need, you can meet their needs by optimizing your product to fit their needs. With the help of social media, it’s now easy to find out what interests people and what doesn’t. This way you can read what they say about you online and you can quickly address the issues and make improvements before it is too late. There are lots of tools you can use to easily monitor and protect your reputation online.
Big data statistics
- 90% of the data in the world today has been created in the last two years alone
- All of the world’s digital data equals to about 900 exabytes, 70% of which is created by individuals
- More than 570 new websites are created every minute of the day
- Average online cart sizes increase 10%-15% as a result of personalized advertising, using customer information obtained through big data
- The White House administration is investing $200 million into big data research projects
- By 2018, the United States alone could face shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analytics from big data to make effective decisions.
What is next?
As one of the fastest growing trend in 2017, big data has become a massive part of every business and isn’t slowing down anytime soon. Looking at some big data predictions it’s safe to say big data analysis will continue to grow. We can also expect to see improvements with the introduction of big data analytic tools that won’t require an analyst.
Need help with analysis and management for your business? Contact Valoso Hub and find out how we can help your business thrive.