We know that collecting data and running it through advanced algorithms (like AI) can result in remarkable things. One example includes machines that beat humans at the board game GO. Another is imbibing computers with the ability to generate faces that don’t exist on real people. But there’s a growing sense that big data can’t add real value to the economy. Where’s the money?
Although that might be a general perception, there are a bunch of companies like LinkedIn and Mindjet, that are making serious use of data to make money. It’s not all just hype.
LinkedIn Boosted Revenue 85 Percent
When people talk about “double-digit” revenue growth, they’re usually talking about growth in the region of 10 to 15 percent. But when LinkedIn decided to start relying more on data, it managed to boost its revenue by an astonishing 85 percent. How did it do it?
It turns out that LinkedIn had done something simple. It turned over its Tableau and Hadoop insights to critical salespeople. Those sales experts then used the data to create more targeted marketing campaigns. By using company resources, they attracted customers with a higher probability of conversion.
NYSE Cut Costs By A $1 Million With Third-Party Data Management
Managed IT has the potential to cut business costs across the board by eliminating the need for companies to store data on their premises. The NYSE, a data-heavy organization, managed to save around a million dollars on data costs by simply switching service providers, and storing its data with somebody else. Thanks to the cloud, the NYSE can still access and analyze the data in real time but doesn’t have to go to the expense of looking after its own computer hardware. That’s a significant benefit.
News Corp Saves On Wages With Relationship-Software
News Corp, a major news organization in the US, wanted to find a way to reduce some of the interpersonal frictions in the organization that were leading to lagging productivity. It began using something dubbed “relationship software”. This tool allows colleagues in the firm to share relevant information without having to meet with each person to discuss ideas. The technology saved the average worker five hours per week. This led to annual savings of around $16,500 per year.
Mindjet Boosts Conversions
Mindjet sells work management software. As any growing software company knows, the industry can be unforgiving and competition fierce. But that didn’t deter the San Francisco-based firm. Executives realized that if they wanted to make a dent in the market, then they would have to use their data advantage to capture new customers.
The company began collecting all the data it could be related to potential customers. Data scientists then used these data to predict the likelihood that a particular company would buy. Only targeting companies with a high propensity to purchase led to an impressive 500 percent boost in conversions. Mindjet now makes much better use of its limited marketing resources.
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