Big data is important in the commercial world of today. No, scratch that – big data is essential in the commercial world. Estimates say that by 2020, every second will yield in 1.7 megabytes of data. The spending on technology for big data is reaching $57 billion, and fast. These calculations indicate that big data is used tremendously and to its full potential. Naturally, its impact on business gain is growing simultaneously, too.
And not just that. In addition to big data, the digital world is growing at a rapid pace, too. As a result, businesses use it to become more powerful than they’ve ever been. But, before we go into why big data is so important, let’s understand what it is first.
What is Big Data?
Big data combines a variety of things. The data that is generated by search engines, e-commerce stores, social media, applications (online and offline), government, websites that track human intelligence, habits, and behaviors, is called big data. It can be both meaningful and meaningless, online and offline, as well as data you collect offline through surveys on many people and save it to a simple, excel spreadsheet.
If, say, 100 people visit one website in a month, you are talking about data. If a million of them visit it in a month, it is a big data. It’s as simple as that.
Data is crucial for tracking the progress of anything, including businesses and even governments. It is used to implement technologies, track user experience, reduce risks, or create and introduce new policies. Each data type contains facts and figures that aid the organizational, career, business, and simply – daily life decisions people make. Tracking big data is the key to making things work.
This is precisely why everyone seems to collect and store data about customer number, user behavior and experience, income, purchases and sales, search queries, region, or trading. All these features are part of the big data and can be grouped with the goal to measure or track something.
Knowing all this, you can already assume that big data is important for – well, everything. This is why it isn’t all about internet and technology. Big data is present everywhere and for everything. And most importantly, it is highly important for business.
The Importance of Big Data for Business
All types of data are crucial for a business’ success. Even the small data. However, the bigger the data is, the more meaningful and concise is the research and data analysis. Small data can be effective for small businesses and their scaling opportunities’ analysis. But, big data comes with its own set of advantages, five of which we will be exploring in this article.
1. Develops Creativity and Innovation
For a business to achieve a goal, it needs big data to develop creativity and innovation. In order to find out what the customers look for and target their needs, you need big data.
You can’t just go and create a product because one or twenty people said they’d be interested. A business invests in manufacturing, talent, training, and many other things that simply pile up the expenses. If they don’t check how desirable their products or services are beforehand, the chances of those products failing to sell are very high.
Thanks to big data, businesses use methods to gather information that reduces the risk significantly. They do testings and conduct surveys that show them how well the selling process will actually go. It might not be the most accurate or look into the future for them, but it is certainly the most insightful tool for business.
2. Helps Attract Customers and Increase the Revenue
Regardless of its size, every business strives for consistent growth. Increasing the revenue is the primary concern of every business owner. This is where big data comes really handy.
To actually retain the old customers and attract new ones, you need big data analysis. You can analyze their behaviors, habits and interests, and lean the strategy toward the results.
Even if the products are already created and out there, big data can help you track them and modify them in a way that will result in more customers and increased revenue. Take a look at this sales pipeline template – the big data in it is the main factor as to how the sales progress.
Thanks to technology, big data can be accessed easily at this point. It is so simple, you can even track searches on search engines. For example, Google Adwords tell you which keywords are most used in the industry. You can then take advantage of this information and turn it into a successful SEO strategy.
What is more, you can monitor the visits on your websites, the sales and their percentage or progress, the specific keyword data used on social media and YouTube Video Ads, etc. The options are numerous and very simple, and the results are better than ever.
3. Allows Businesses to Compare and Analyze
Big data is the strongest tool you have to compare and analyze the products and services your business offers. You can use it to track your brand recognition and authority by examining behavior metrics and user experience. The trick is – you can do this in real time and take action early in the process to ensure better results and prevent mistakes for your business.
4. Enables Real-Time Marketing Analytics
Real-time marketing analytics aid businesses in promoting services and products to their target audience. They boost the creativity but also tell you what you are doing right and what needs improvement. They lead to higher creativity and innovation, and more informed decisions on behalf of business marketers.
One highly helpful tool in this sense is Google Analytics, and you can even install it to your website to access helpful big data.
5. Helps Increase Customer Satisfaction
When you have access to big data from different sources, you can enhance user satisfaction and boost their engagement. Big data helps you improve website usability, iron out the issues that occur with customers, preserve your brand loyalty and improve the customer service. Consumers of today are demanding, but they are also happy to let you know how your service went. When they do, you have the data you need to increase customer satisfaction and boost your revenue.
Most insights are right there and available at the click of a single button. Using big data to your advantage can help you solve problems before they ruin your brand’s reputation and finally see what’s in the mind of your customers. As soon as you know what makes them run away and what makes them stay, you can use big data to improve.
Data is primarily collected by using tools and sources. Whether it is Google and technology, or surveys and interviews, big data serves a big purpose. Businesses keep investing in it because it helps them grow and increase customer satisfaction. Both of these things are essential for the success of a business. That’s why big data is so important.