Everyone has heard about the term ‘Big Data’, which is used frequently to describe a collection of data for businesses that is analyzed for gaining deeper insights into the business and for creating strategies for improving performance and generating greater profits. By analyzing and calculating this data, businesses are able to find valuable information regarding customers and their common habits. It helps select key performance indicators (KPIs) of a company, and highlights new ways, where they can improve. A lot of big name businesses are using big data in order to improve their systems and calculate how to target their customers in a better manner.
The majority of transactions happen online, and big companies tend to generate large quantities of data, which they can analyze and use to spot key trends. They can then use these figures in order to come up with new corporate strategies, which will not only improve ROI but overall profits for a company as well. The bottom line is that big data is important, because it generates more than $22 billion every year!
How big data really works?
In order to properly understand the workings of big data, you will need to find out what it actually is. Big data is basically the exponential growth of structured and unstructured data. This seems simple to understand, but it is much more complicated than that, since big data is all about the three Vs, which are ‘volume, velocity, and variety’.
Businesses aim to collect big data in order to personalize their inventory and make it more appealing to their customers. This way they are able to make more informed decisions regarding the implementation of their marketing strategies. So they review their analytical data in order to predict different factors that will determine the success of their brand or product.
What about the Companies that has Less Data?
Big data is easy to collect and make use of for multinationals that are churning out huge profits, and have a large user base with thousands of interactions taking place with customers on a daily basis. But what about the SMEs? What should the small local businesses be doing?
Around 50% of large scale businesses have already executed big data solutions, in comparison with 20% of small companies. Why the disparity between data collection? This is simply down to the volume of data being collected, and small companies simply aren’t able to generate a large amount of data to analyze and use consistently.
But this doesn’t mean that there isn’t any value for small companies to use ‘big data’. They can still apply data analytics on a smaller scale in order to increase ROI and boost their profits. The size of the data shouldn’t matter, because all data is valuable, and every number will offer something of value to the company. This is another key area that modern day technology has greatly influenced as cracking codes and crunching numbers will allow a small business to take the step to get to the next level.
Making the Best Use of available Data
You should know that a business can’t really improve things that it can’t measure, but if they have to change things, they need to know what should be changed. This is why businesses use web services and tech devices that generate useful information on a daily basis. Free to use tools, such as Google Analytics have changed the game for companies, as they help them analyze big data, and search for important trends that reveal key performance indicators. These can include the following:
- The top seasonal products and their best selling time
- The impact of discounts and promotions
- Length of time spent on sales calls
- Overall spending habits and demographics of customers
- Peak times for online sales
- Sales funnel journeys
It is important to make sense of the information and numbers across important areas of the business, since that is the only way you are going to manage improvement and use them to your advantage. This is also great for customers, since businesses will aim to improve overall engagement with their target market, which will mean better services and quality of products for them.
Small companies hold a key advantage here, since they can easily analyze and apply information faster, which will lead to better and more personal interaction with customers. This allows them to come out with solutions, and improve their services, due to big data.
Putting Big Data into Practice: Trying to Help Companies
There are lots of businesses that have helped improved their services by improving customer engagement through big data analytics. The number of businesses relying on big data is growing, and small businesses stand to benefit the most from it, since they will be able to quickly understand how their market works, and how they can serve better services, while keeping costs down.
The customers of small businesses need to feel positive when engaging with the brand, which is why big data is even more important for them. Statistics show that about 23% of small businesses are using data analytics software these days to leverage big data, with a staggering 73% of these businesses reporting that doing so helped them attract more customers and help existing ones.
A further 65% of small businesses revealed that big data helped them enhance customer experience, and 63% of business owners reported greater returns from their investment after only one year!
The Future of Big Data
There is no denying the fact that big data is extremely important for small businesses, since it helps them gain access to detailed reports on solid business numbers. This helps the management hire the right employees, and identify the key areas where the company needs to grow. The main goal for analyzing big data is ensuring that the customers are happy and the business is on its way to improving its return on investments.
It is true that big data analytics software is a time investment, and comes with significant costs, but it also comes with the solid guarantee of enhancing ROIs. This makes it an investment worth making for small businesses, and makes is so invaluable for small businesses around the world. Contact Noel Network & PC Services for more details.