Published on October 16th, 2019 | by Sumit Bhowal0
Why You Should Use Big Data to Grow Your Business
In the digital era, everything is basically taking place over the internet. We are talking about e-commerce platforms, online courses, and buy essay writing services. This is just a tip of the iceberg. What is happening online is impressive. The application of digital technology in business processes has made data collection possible. As a business grows, more data is generated. This has led to the birth of the concept of big data, which has become a valuable asset for businesses.
53% of companies are using big data. The number is also expected to grow. It is with good reason. Big data is helping businesses grow in the following ways.
1. Innovative marketing strategies
Thanks to big data, marketers have bid blind marketing goodbye. Since the onset of big data, the marketing world has experienced a significant shift. The use of big data in social media analytics has allowed marketers to get insights into customer behavior. Using the information, they are able to design marketing strategies that suits the preferences of the consumers.
Some of the big data techniques that are being put to use today include interpretation of traffic data, text analytics, and sentiment analytics. Through this, businesses are able to create strategies that strengthen customer relationships.
2. Improved business performance
Through the use of big data, companies are able to analyze their potential. With the insights generated from big data, businesses can come up with foolproof strategies. For instance, by analyzing customer response to marketing strategies, marketers can be able to point out the ones that work best for them. Through data analytics, organizations can create and execute well-planned strategies improving their overall performance.
3. Cut down expenses
Organizations look to make the most profits by primarily cutting down costs. Big data has enabled many businesses to reduce expenses, leaving them with substantial earnings. For instance, by studying the return on investment of various strategies employed, companies are able to point out the strategies they need to focus more on and the ones to get rid of. That way, they are able to spend on activities that are not profitable to the business.
Also, through data analytics, organizations are able to identify untapped opportunities and take advantage of them. Investing in opportunities that you are sure of prevents the wastage of time and resources. The same concept applies during hiring. An average company can spend close to $3000 in hiring an employee. When the wrong candidates are recruited, the turnover rate ends up being high and businesses spending a lot of revenue in recruiting human resources. Through big data analysis, businesses are able to check the profiles of candidates and assess whether they fit job specifications before hiring them. Recruitment process becomes even easier.
4. Customer retention
Getting new customers is one thing. One of the factors used to measure the success of a business is its ability to retain customers. Data analytics enables businesses to determine which marketing strategies are the most successful. With that information, companies are able to focus more on what helps them achieve customer satisfaction.
The data gives the business insights on customer preferences. That way, they are able to design products and services in a way that best meets their needs. Customer retention makes it possible for businesses to maintain steady revenues. Satisfied customers are also likely to become your ambassadors.
5. Risk analysis
The other area in which big data has been useful to businesses is in risk analysis. Identifying risks before they occur can help enterprises to avoid losses and failure in the long run. Predictive analysis allows companies to come up with contingency plans, be prepared for risks, and consequently be able to keep the business afloat.
The importance of data in organizations cannot be overemphasized. It is important to note that big data comes with its challenges too. It is primarily associated with securing it. Cybercrime is on the rise, and businesses need to be able to protect their data at any cost: besides data is valuable. Educate your employees on the importance of data management. To get the most out of big data, ensure that you employ the right big data analysis tools.