7 Areas of Your Business That Can Be Streamlined By Big Data
In this swiftly revolutionizing marketplace, businesses are getting more data-driven and goal-oriented. That’s where big data plays a very significant role. It combines the power of large data and technology with which organizations can achieve business growth.
Businesses have been using big data for many years when they used to do a manual analysis of data on a spreadsheet. However, in the current epoch, Big Data analysis is done with advanced software systems which lead to speedy, efficient, and cost-effective processes.
Big data generates true value through analytics and has a great influence on the business environment. It provides insights that lead to better decisions and efficient business strategies. The big data industry is supposed to reach $77 billion by 2023.
With big data analytics, data is utilized in such a way that it helps organizations to discover new opportunities, understand trends and preferences, and recognize the most valuable customers. This results in more proficient business operations, new products or services, delighted customers, and increased revenue.
Thus, Big Data can be very essential for organizations when it comes to outshining the competition. Various established companies as well as new participants are profitably using data-driven solutions to chase, capture, and innovate. Big Data can be used in nearly all sectors ranging from IT to healthcare.
In this article, we will look into the details of how big data is useful for the business. Below are 7 areas of your business that can be
Help to Acquire and Retain Customers
For any business to be successful, the first and foremost requisite is to have a solid customer base. Customers are a vital asset of the business. To gain customers, you need to look for their preferences, taste, or their choice of products. In this competitive age, if you fail to satisfy customer demands and end up offering them bad quality products then you may lose the customers which hamper the growth and success of your business.
Big data makes it possible for businesses to examine different customer-related patterns, their likings, and trends with which they can understand their customers better. Be it a website visit or an interaction on social media, big data can divulge a lot about your customers. Moreover, customer profiles and buyer personas can also be created with big data. This leads to improved products and services that help bring the utmost level of customer satisfaction. All this helps to generate customer loyalty.
So, if a business is able to gather more data then identifying more patterns and trends gets easy. And in the modern technology age, a business can accomplish all these with a big data analysis strategy. An accurate customer data analysis helps businesses to obtain significant behavioral insights with which desired products can be delivered and the customer base can be retained.
For example, Coca-Cola is extensively using big data analytics for customer retention. An interview with the Coca-Cola director of data strategy clearly explains the role of big data in achieving customer retention.
Trim Down the Cost
Big data technologies including Amazon Web Services, Hadoop, or Tableau store large amounts of data while significantly reducing the cost. Such technologies recognize the approach in which business can be done efficiently thereby helps trim down the costs. Big data provides the information required to identify inefficiencies in the business operations as well as the ways to unravel these issues.
Big data has a positive financial impact on businesses. As explained by Jesse Maida, Quantzig, Big Data solutions reduce the cost of failure by up to 35%. This is a noteworthy saving for any company, isn’t it?
For example, if gathered data is indicating that customers are not interested in buying gift wrapping at checkout then businesses can take out this offering. This will stop or reduce cataloging gift wrapping supplies thereby leading to decreased operational cost.
Provide Advertising and Marketing Insights
Big data analytics has a positive impact on several business operations with which customer expectations are matched, the product lines can be modified, and effective marketing campaigns are created. Earlier, businesses used to do advertising which was most of the time non-profitable. This was probably because they didn’t perform the perfect research.
However, at present, things have changed and businesses can utilize big data for both advertising and marketing purposes. They can carry out advanced analysis to monitor the online activity, the point of sale transactions, and spontaneous detection of swiftly altering customer trends. Such customer behaviour insights are achieved by assembling the customer’s data and analyzing the same. In this way, influential and targeted campaigns can be produced.
Such campaigns intend prospective clients with the precise products that aid businesses to save money and also ensure efficient business operations. Advertisers can also make out the customer’s purchasing behaviour with the use of big data. Moreover, businesses can achieve correct and effective customer reach that helps to shun the huge losses that happen due to Ad fraud.
In the following example, the screenshot is showing several stats about Netflix which indicates how big data is helpful in improving customer experience, customer retention, and targeted advertising. With the big data, Netflix achieves a saving of $1 billion per year on customer retention.
Assist to Know about the Competitors
Big data also has a lot to offer in knowing about your competitors. It makes available information about the pricing model of competitors and how it is observed by the customers. You can get ideas about the perceptions of your competitor’s customers by using big data analytics. In addition, you can also look at how your competitors are doing online or how they are engaging on social media channels.
Big data analysis can be used to estimate the strengths and weaknesses of existing and potential competitors. Besides, the market structure of competitors can be known with which business processes can be improved and competitive response strategies can be planned.
Offer Better Risk Management Process
For businesses to remain lucrative they should anticipate a potential risk and have the plan to moderate it before it takes place. Enterprise risk management is much more than having the right insurance for your business.
Big data is one of the most important solutions that offer a better risk management process. It allows companies to measure and replicate the risks that deal with business operations. With big data, companies can go for predictive analytics to have an intellectual risk foresight that eases the execution of risk mitigation strategies.
Hence, big data analytics can offer a great contribution to the development of risk management solutions. The growing availability and variety of statistics make it clear that big data can significantly improve the quality of risk management models. With this, businesses can accomplish smarter risk alleviation strategies while improving their strategic decisions.
However, businesses should apply a structured datasets to utilize the broad scope of big data. For the same, internal data is gathered first to achieve clear and beneficial insights. The integrated process of data analysis used by the company is also important in risk management. An appropriate big data analytics system makes sure that areas of weaknesses or possible risks are recognized.
For example, Singapore’s UOB bank employs a risk management system with the help of Big Data. It aids in rationalizing the calculation of the total bank risk which notably decreases calculation time from 18 hours to a few minutes.
Help with Innovation and Redevelopment of Products
Big data offers a great opportunity for building extra revenue streams with innovations and product enhancement. Here, businesses make possible data corrections prior to designing new product lines and re-designing the currently existing products.
The design process is started after understanding the exact fit for the customers by means of different channels. Then by using big data, the business can figure out the best way to capitalize on that customer need.
In no doubt, businesses should collect large data when it comes to advance the quality and restructure their manufacturing performance. This data should track competitors, products, and customer feedback.
After getting such data, logical reasoning is performed via analysis before an action plan is formulated. Thus, businesses can easily advance their product line with innovative products.
For example, with big data analytics, Amazon has moved into a large market known as Amazon Fresh and Whole Foods. Amazon achieves essential expertise with data-driven logistics which makes it possible to create and attain a greater value.
Useful in Supply Chain Management
Supplier networks can attain greater accuracy, contextual intelligence, and insights with big data. Big data analytics makes it possible for suppliers to overcome the constraints that are faced earlier.
With the help of modern approaches that are created using big data, the suppliers can manage advanced levels of contextual intelligence which is crucial for supply chain success.
Current supply chain systems that make use of big data lead to multifaceted supplier networks. Knowledge sharing and sophisticated collaboration are vital aspects here that help achieve apt intelligence. Moreover, big data analytics work as a disruptive technology for supply chain executives because it is supposed to set a base for change in organizations.
For example, one of the leading consumer packaged goods companies, PepsiCo, utilizes a huge amount of data for the better supply chain management. Check out the webinar by PepsiCo’s Customer Supply Chain Analyst to know the value of big data analytics in the company’s supply chain.
To Summarize
Big Data has a range of business applications for successful business growth. From risk management, customer retention, reduced operational cost, development of new products, competitive advantage, to supply chain management, big data is very useful in many ways to advance business operations. Notably, organizations must have the right infrastructure in place to implement appropriate data analysis systems to deal with huge data.
