Before we move forward, let’s ask ourselves this question. What is it that made big companies like Google and Apple everything that they are today? Was it their innovation? Or their incredible marketing? The answer is yes in a manner of speaking, but it all truly falls in the line of business intelligence or rather Big Data.
With the help of analytical tools and reports, people today generate over 2 quintillion bytes of data about themselves. This is by no means a small amount. In order to get to know the customers better, many businesses today gain access to such information or big data and study it. This helps in overall better decision making. By incorporating better analytical methods and reporting, companies are able to derive key metrics and insights required to make more informed decisions thereby accelerating overall performance and more importantly, future growth.
So how does big data make its contribution here? Let’s understand how businesses can use this big data available to create their competitive edge:
1. Informed Decisions
There’s no doubting how overwhelming the presence of big data can be, especially given the situation of not being able to make much sense of it in the first place. But let’s not deny its importance. Such data only empowers organizations to make better, more informed decisions whether for internal or external purposes. Internally, businesses can evaluate employees in terms of their performance as compared to overall standards so as to make necessary improvements.
Big data allows companies to get real-time analytics so as to assess their performance on make changes dynamically if needed. Externally, it allows strategic decisions to be made by using customer information based on behavior and trends.
2. Know your Audience Better
Big data provides companies with all the ammunition in terms of rich data so as to help them understand their audience or customers much better and also divide them accordingly. These parameters can vary from a customer’s behavior as mentioned above to their experience and also knowing their preferences.
Organizations are therefore equipped with such knowledge that help them know their target audiences better and therefore make smarter decisions with regards to them. This is accomplished through effective relationships and segmentation which has helped cut acquisition costs by almost 30%.
3. Predictive Analysis
This is a more exciting prospect when it comes to big data. More so because it involves the concept of probability. Being able to go through such intensive amounts of data provides companies with a variety of insights. This opens up the day to a near infinite amount of possibilities when it comes to a company’s customers as it helps target them more proactively.
A common example in these cases is with e-commerce platforms that research customer purchase patterns and searches. This allows them to make recommendations and offers so as to increase sales.
4. Allows ROI Measurement
With the help of such data, companies can monitor and measure performance and determine ROI for success. Through the use of such reports, companies can increase their conversion rates and so on. It allows them to reduce maintenance costs as it is all in real time too. This allows effective monitoring and come up with more cost-effective methods as mentioned earlier.
5. Smarter Businesses
Big Data today, is spawning new categories of companies that embrace information-driven business models. Many of these businesses learn more and more and adapt accordingly while on-the-go. This allows them to create more in-depth profiles regardless of whether they’re B2B or B2C.
There’s no doubting the advantages big data brings to such companies. But there are things to keep in mind. Before adopting to big data analytics, companies need to ensure that they have the right resources to manage such volumes of data, customer and market insights that they will be receiving on a daily basis. However, if implemented effectively, a company will reap the benefits from the wealth of data and information that it provides.