Big data is the term used to describe a sizeable chunk of raw data that is collected and analyzed by businesses and which they can use to better inform themselves and make more profitable decisions. It has become something of a buzzword right now with most experts stressing just how important it is to business. That means, if you aren’t already using data to your advantage, you should start!
Not sure whether you need to get in on the whole big data thing? Here are some of its competitive advantages, which I’m sure will win you over:
Big Data Saves Money
Okay, so collecting data won’t automatically save you money – it may actually cost you money as you will need to purchase the right tools and set up the right system to capture relevant data. However, if you use Cloud-Based Analytics and tools such as Hadoop, the cost of collecting data should not be too high, and you will save money in the following ways:
- Time Reduction. When you use tools such as the aforementioned Hadoop and also in-memory analytics, you can quickly identify new sources of information and make a faster decision based on the cache of data you have retained. You can do all of this with minimal human input.
- More Targeted Marketing. When you collect data on your customers and individuals who are likely to fall into your target audience, you can identify patterns in the way they shop and what their likes and dislikes are, which makes it a whole lot easier for you to come up with a marketing strategy that works – no more wasting money going after individuals who are unlikely to be interested or casting your net so wide that it is virtually useless.
Big Data Means Better Product Development
Another good thing about big data is that, once you’ve collected enough you can improve your products and services so that they are more desirable. How? By looking at customer trends, wants and needs and acting accordingly.
Big Data Can Be Sold
Whether you want to sell the data you collect to third-party companies who have a use for it, or you use ad-hoc reporting tools to repackage customer data you’ve collected as insights in the form of reports, it is possible to make money from your data directly. Obviously, if you’re selling to third-party, you will need to have permission, but other than that, it is a great way to boost your business’ income.
Big Data Can Boost Your Online Reputation
Some big data tools can perform sediment analyses which will give you valuable feedback about what your customers think of you. It will enable you to monitor this feedback and then act upon it by making any necessary changes so that your reputation is given a real boost.
The Bottom Line
Big data is here to stay, and if you aren’t using it, you are missing out. It can help you to improve customer relations, beat the competition and even make more money. But, this will only happen if you take action, start using the tools and make any necessary adjustments to your business.
