4 Ways to Use Big Data in Your Company
Big data is becoming one of the essentials of doing business, for entrepreneurs as well as large enterprises. It allows your to make the informed decisions that will give your company the best opportunities for growth. Data-driven businesses can recapture 20 percent of lost ROI. This builds greater value both in terms of profitability and public perceptions.
Here are four ways your company can leverage big data.
- Identify your customer
Many potential consumers are just never going to purchase from you. Each could have a very different reason why. The key is finding those who are most likely to purchase your product or service. Big data can not only help to determine the characteristics of those who are spending money in your niche, but identify what appeals to them.
It’s possible to gather data for customers on demographics such as income, education, age, gender, and so forth. This can be further broken down into locations, products, even the websites they visit and the ads they click on. However, it won’t do you much good until you see it in a context that aligns with your business. By breaking down your best customers into market segments and learning more about them, you can specifically target your best prospects.
The prices you set can determine your business’ future. Pricing too high will discourage consumers while pricing too low will erode your profit margins. It can be difficult for you to determine exactly where your company stands in terms of value within your industry. As a general rule, the greater the value that a consumer associates with your brand, the more they’re willing to pay.
Big data analytics helps to provide a clearer picture of where you stand. For instance, you may be able to charge more for the same product in markets where there’s less competition or your value perception is higher. The time of year, product bundles, and incentives like free shipping can help you to determine what consumers are willing to pay so that you can maximize different product opportunities across the board.
Big data can also help to optimize internal and external processes. Establishing and monitoring metrics for employee performance can help to identify areas needing improvement. If you can find a way to capture the data, you can analyze results for everything from warehouse allocation to call center capacity. Analyzing vendors could boost your supply chain performance by 15 percent. Greater visibility into your workflow will enable you to determine exactly when and where bottlenecks and waste are occurring.
This becomes a continuous process leading to constant improvement. As your profits grow and costs fall, you may choose to invest in technology like automation. Equipping your workplace with sensors, scanners, cameras, electronic switches, and more enables automatic data capture that’s fed immediately into your big data solution to indicate where production stands at any given moment.
Without big data, marketing becomes a trial-and-error process if not an outright gamble. This can make many businesses hesitant to devote much capital into new advertising campaigns or product development. Fast analytic tools can help you discover buying trends and consumer behavior in real time. For example, you could install Spark for cluster analysis, which is engineered to process large online datasets.
Agile marketing strategies help to reduce wasted time and money while boosting revenue. The grocery chain Kroger used analytics to earn an additional $12 billion in one year. Analytics of real-life consumer activity allows you to identify exactly what works and what doesn’t. You can focus your marketing budget and employee efforts into the platforms, content, and offers that are working now, and make adjustments as patterns begin to change.
Big data can provide the answers your company needs to improve your processes and marketing. Data-driven decisions will fuel more rapid growth and increasing value
Finn Pierson is a freelance writer and entrepreneur who specializes in business technology. He is drawn to the technological world because of its quickly paced and constantly changing environment. He believes embracing technology is essential to capturing success in any business and strives to inspire and encourage top technological practices in business leaders across the globe. He’s a fan of podcasts, bokeh and smooth jazz. His time is mostly spent learning the piano and watching his Golden Retriever Julian chase a stick.