Big data has undoubtedly become one of the most powerful tools in the business world, impacting everything from marketing to sales and customer service. Those who aren’t aware of Big Data Impact on Business may soon be left behind.
- But how exactly does it work?
- How can you benefit from it?
- And how do you ensure your business utilizes its power?
We will answer these questions and explore its impact on businesses in this blog post! So, read on.
Table of Contents
Why is Big Data So Important?
Data is crucial in comprehending valuable insights about target demographics and customer preferences. Each interaction with technology, active or passive, creates new data. Also, our data profile is growing exponentially since data is captured through products, video cameras, credit cards, mobile phones, and other touchpoints.
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If analyzed appropriately, these data points can explain a lot about our behavior, personalities, and life events. Companies can leverage these insights for product improvements, business strategy, and marketing campaigns to cater to the target customers.
The concept of big data and its importance has been around for years, but only recently has technology enabled the speed and efficiency to analyze large data sets. As structured and unstructured data grow substantially in the coming years, it will be collected and examined to reveal unexpected insights and even help predict the impact of big data on business in the future.
Big data will change how even the smallest companies do business as data collection and interpretation become more accessible. New, innovative, and cost-effective technologies are constantly emerging and improving, making it incredibly easy for any organization to implement big data solutions seamlessly.
How Businesses are Using Big Data?
Most companies these days collect an incredible amount of data that helps them run their business more efficiently. But for some, big data has become more hype than anything else.
On the other hand, some businesses are still figuring out how to use big data to improve their operations or serve customers better.
Harness the power of big data.
Here’s a look at a few examples of how businesses use big data today:
Improved Operations
Big data is helping employees make intelligent decisions every day. Bank Hapoalim uses call center records to spot spikes in customer complaints regarding certain types of accounts and then reviews account records from these periods. The bank identifies specific causes for high volumes of customer service calls and then addresses them quickly before they escalate into more significant problems.
Another company using big data effectively is Tesco, a supermarket chain based in England. To ensure its products are fresh when sold, Tesco analyzes its sales information every hour to determine what products should be restocked. The company also monitors social media sites like Twitter and Facebook so it can react quickly if there’s any negative feedback regarding its products.
Better Customer Service
Domino’s Pizza stores all sorts of data related to its orders, including phone numbers, addresses, and credit card numbers.
When customers place orders online, Domino’s can track their location through GPS technology and send them a text message confirming delivery times. If a customer doesn’t respond to a text message, Domino’s tries calling or sending another text. Those attempts fail, Domino’s continues trying until someone responds.
If nobody responds after several attempts, Domino’s might even contact local police to check on the safety of its customer.
Personalized Experiences
Netflix uses big data to recommend movies and TV shows based on users’ viewing history. Amazon does something similar with its recommendations for books, music, and other items customers may want to buy.
Track Behavior
We probably don’t think twice about sharing our personal information with our favorite websites—we do it all the time without giving it much thought. But most websites collect vast amounts of data and sell them to third parties. By tracking our online behavior, advertisers can learn a lot about us, such as where we live, how old we are, and what kinds of things interest us.
And because advertisers know so much about us, they can target their ads very specifically. They know exactly who they’re talking to and what kind of pitch will work best to get them to buy whatever product or service is advertised.
Identify Trends
Businesses use big data in a trend-spotting capacity by looking for patterns in search engine queries. If a large number of people start searching for a particular item, demand for that item goes up, and companies adjust their production accordingly.
Predict Consumer Behavior
Companies take note of what their frequent customers purchase and use that information to predict what they may buy next.
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The Benefits of Big Data for Businesses
A lot of companies receive a tremendous amount of data every day. That data is from external and internal sources. If you are a business owner or a marketer, you need to take steps to figure out how to use big data to better your company’s financial prospects.
The value of business intelligence is vast, so let’s see how you can start accessing data about your business internally and externally.
Get Customer Feedback from Social Media
Social media has become integral to our culture. A study found that many people spend at least six hours online daily just seeing what their friends are up to and talking to them. And without a doubt, consumers love brands that offer exceptional customer service through social media channels. You need to take advantage of that!
When people review your products or services on Facebook or Twitter, respond to them quickly and politely. Don’t be afraid to ask follow-up questions until they give you honest, insightful feedback, as it will allow you to figure out what aspects of your product customers like, what they don’t like, and what flaws they are struggling with. You can make adjustments to your product using the accumulated information.
Use Big Data Analytics to Maximize Your Sales
There are many ways to use big data to get more of what you want. Carefully analyze what your customers want and when they want your product or services. It will lead you to better marketing strategies for each customer group. For example, if one group wants discounts and another wants free shipping, find a way to provide both! Using marketing analytics for increasing sales includes the analysis of customer reviews, searches on the web, advertisements, and loyalty programs.
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Create a Profile of Each Customer Group
Creating separate profiles for your customer groups can help you promote relevant offers and customize your message. Your customers will feel special because they are receiving messages targeted only to them, while you will have better control over who will buy from you and why.
Predict Data by Analyzing Demand
Its most advantageous feature is that it can anticipate future trends with the help of current trends – impossible to do without extensive data! For example, if past Google searches indicate that most people have been searching for red dresses rather than blue ones, we can safely assume that red dresses will also sell better than blue ones next month.
Armed with that knowledge, you can stock up on red dresses and plan your promotions around them.
Improve Customer Retention
One of the most significant benefits of big data for businesses is that it helps retain customers.
If you know what your customers want and are interested in, you can send them emails and push notifications to remind them that they’ve bought from you before. And bring them back to your store!
In fact, research shows that repeat customers are much more valuable than new customers because they usually buy more often and spend more money overall.
Personalize Your Website
A big data tool called Customer Relationship Management (CRM) helps marketers manage customer data efficiently. CRM tools allow you to collect customer information from multiple sources, such as email addresses, phone numbers, and social media accounts.
Once you have accumulated enough data, use that to personalize your website. For example, if a customer has filled in their name on your site in the past, you can give them the option of auto-fill so they don’t have to type it all again!
Drive Sales with Targeted Ads
Based on big data analytics, marketers can identify people with specific characteristics and target them with ads. For example, if you’re selling running shoes and know that 20% of your customers are female runners between 18 and 24 years old living in Los Angeles, then you can target those women specifically with ads for running shoes!
Challenges that Businesses Face When Implementing Big Data Solutions
While the impact of big data on business can be rewarding for many, it may also pose challenges. The biggest issue is collecting, storing, and analyzing massive amounts of data can be extremely costly. Besides, companies might not have systems in place to use big data effectively.
Implementing big data solutions is great, but they’re only helpful if businesses use them appropriately. However, even with these issues, big data solutions are worth pursuing because they can provide many benefits. An increase in profits or efficiency could make it worth your while to take on these challenges.
Even though there are risks involved with big data impact on businesses, it’s important to remember that you don’t need to do everything at once; small steps toward progress will still benefit your business.
To Get Started:
- Identify the aspects of your business that would benefit from big data solutions
- Look into different ways to implement these applications
- Think about how you want to collect data, store it and analyze it
- Then, work out a plan to implement each step of your plan one by one
Over time, you’ll see results from big data solutions—and hopefully, they’ll be positive!
If you already have some kind of system in place, it should be easier to start using big data technology than if you don’t have anything set up yet.
The Future of Big Data and Its Impact on Businesses
Ultimately, in a world where experience is key and businesses constantly compete to make themselves stand out, there’s nothing more valuable than data. Big data gives companies the scales and insights they need to develop a sensible growth strategy. With the appropriate big data analytics and tools, anything is possible.
Image Source: Statista
Using the right big data technologies will allow you to show an unparalleled connection with your customers and how to make your team more efficient. Data gathering systems will allow you to streamline business operations, reduce your outgoing costs, and help you grow your bottom line. In the years to come, any business that does not use big data will be left with endless improvement opportunities.
Stay ahead in the competitive landscape.
FAQs about Big Data Impact on Businesses
Is Using Big Data Expensive?
No! There are so many ways to capitalize on your data, such as locating and retrieving it with no cost or investment. The first step is understanding how your data is stored. In addition to tracking current numbers with preexisting analytics tools and reports for things like traffic, you can use it to find new revenue opportunities, develop better marketing campaigns, or find new customers.
What If I Don’t Have Any Data Yet?
Don’t worry. It doesn’t matter if you’re a beginner or simply looking for ways to better what you already have. Even if you have no available resources, it doesn’t mean you can’t make the most of available information or take steps toward acquiring more valuable information moving forward.
In fact, it’s good to start small and figure out how you can use existing data in your business before trying to collect additional data. For example, do you know how many people visit your website each month? If not, start there!
What are Some Common Ways Businesses Use Big Data?
From finding new revenue opportunities to improving customer service, there are countless ways in which companies across all industries are leveraging their existing data for business growth. One popular approach is using analytics tools, such as Google Analytics, to gain insight into foot traffic patterns on a website or mobile app; another is mining social media platforms for mentions of products or services that could lead to new sales leads.
