Big Data provides you with useful insights into the workings of your own company as well as market trends

Because big data is complex and deals with a lot of information, most small businesses assume they cannot use it. This could not be farther from the truth, as big data is one of the ways in which small businesses can succeed. The proper utilization of these data tools can help businesses stand out from the competition, make more informed decisions, and increase their revenue.

What is Big Data?

In simple terms, this is a collection of data that is huge and grows rapidly. It provides so much information that traditional data tools may not be sufficient to analyse it. Some everyday examples of big data include social media platforms and stock exchanges, which generate many terabytes of data per day. This can exist in structured, unstructured or semi-structured forms. Structured data is relatively easy to work with, as the formats are predictable. Unstructured or semi-structured data is when the format is not known. While this data is not easy to work with, it can provide a plethora of benefits.

What are the benefits?

In the information age, the more knowledge you have, the power you wield. SAS, Qualtrics and Google Analytics are some of today’s most prominent big data solutions. Through the help of technologies that access and crunch the numbers from Big Data, you can enjoy a number of perks.

• Identifying Trends

If you work in sales and are wondering “Why is Big Data Important In Business?”, you can find no better reason than the ability to identify market trends. By studying the behavioural patterns of consumers, you can predict where the market is heading. It is inevitable that demands for products and services change over time, but by knowing why and how that change occurs, you can be prepared for it. Big Data can take multiple factors into account, such as social media trends, seasonal effects, economic conditions. All these factors help give you an accurate picture of what people are likely to buy. You can also use this data to identify issues in a timely manner and take corrective steps before the problem gets out of hand.

• Improving Your Online and Offline Stores

In terms of online stores, data can track how a person moves from product to product, which banner image or product layout caught their eyes. In real-life stores, you can use data from your security footage to see how customers move across the aisles. This can help you make adjustments to the site that encourage people to spend more time on, and potentially purchase your product. In physical stores, you can arrange the layout to maximize the chances of a customer moving up and down the aisles. This increases the number of products they see and utilizes the sunken-time fallacy to encourage them to buy. Big data has already been used in grocery stores to determine that playing slower music creates a sense of calm and discourages people from rushing through the aisles. It also showed that keeping sought-after items in the middle of the aisle increases the time people spend roaming the store. You can use these analytics to determine the best arrangement of your online and physical retail store.

• Improved Customer Service

A common tip in the business world is providing personalized customer service. This not only helps you target ads at a customer based on their unique identifiers, but it improves the value they derive from being your customer. Most businesses are becoming customer-centric to drive up sales, and you need to focus on customer value to increase your reach. Previously, determining what the customer considered as valuable was guesswork. However, Big Data empowers you to derive fairly accurate conclusions about what the customers want without needing to spend too much time or too many resources. By reading and evaluating customer responses, you can present your company as attentive and proactive. This can reap benefits such as brand loyalty and word-of-mouth recommendations.

• Manage Your Running Costs

Companies need to operate in the most efficient manner possible to maximize their net profits. Depending on the type of company you run, you would be getting operational data as well. This could be the information from the production line, sensors on delivery systems, or payment and ordering systems tracking. Big Data can be used to pinpoint whichever section of your company is operating below its optimal performance and rectify it. You can also deploy smart strategies to connect different segments of your operation. Depending on how much machinery is used in your work, you could potentially create a rather autonomous work setup. This would allow for consistent, quality workflows while reducing the number of laborers you need to hire. The savings you make through this data not only increase your revenue but offer you the chance to outdo your competitors. You could use the savings, for example, to offer more sales and undercut your competition. Amazon regularly undervalues its items to increase its user base, which it then retains for more purchases down the line.

• Improve Your Hiring Strategy

A company is only as good as its team. As your small business starts to grow, you would want to bring on the best talent you can afford as well as retain engagement with your employees. Big Data can also be used to accumulate a wealth of HR information. This includes absenteeism figures, productivity data, personal development reviews, and staff satisfaction data. With this information, you can tweak your team structure to reward the most productive members, try to talk out any issues with team members that are performing below average, and ensure you meet your expected goals. Data from recruitment sites and social media such as LinkedIn can help you target new and experienced workers that would be most beneficial if added to your team.