The evolution of big data has already started transforming large businesses. There are many success stories about how companies can better understand customers, and catered to their needs in a most effective way, resulting in increased customer retention and profit. However, small businesses are still trying to find ways to make big data work for in new company or small-scale startup setting. There is huge potential in big data, and businesses big and small can all profit from the large amount of data available in our day and age. Here are some pointers on where small businesses might be able to leverage big data effectively:
Up until now, many small businesses used a “one size fits all” approach in their marketing effort. However, this may not result in a best return on investment (ROI). Customers have different needs, and sending a campaign email with generic information may not excite them to go and buy something. Fortunately big data could come to the rescue in this case. Big data analytics is superior to traditional database analytics. It supports multi-dimensional analysis, and uses a variety of models to predict the final outcome based on machine learning. As a result, campaign emails can be catered to the individual needs of a customer, resulting in higher ROI.
Venturing into a new market area is a risky, but necessary option to stay competitive in the market. Many times, small businesses might find opportunities to expand their business beyond their current line of operations, and resort to traditional options such as market research, often hiring third party vendors. However, the cost of a market research gone wrong could be huge. Big data analytics could play a role once again to solve this issue. With its ability to predict opportunities and risks using multitude of options, big data analytics could play a significant role in helping to expand the business in potentially profitable areas.
With so many options available for consumers to buy a product at a competitive price, businesses often struggle to retain customers who love to shop around. Keeping the customers loyal would require one to understand their intentions and needs better, and provide them the best option with discounts and promotional offers. These options are better served using big data analytics, which could analyze customer purchase history, social media profiles, and location data to provide the best possible options for customers that are individually tailored to their needs.
A key factor that influences a small business is the ability to cut down the costs associated with procuring and distributing a product. At the same time, businesses have the need to delivering the product at the shortest possible time to increase customer satisfaction. Both these tasks require better logistics and management. While utilizing third party vendors to provide logistics support is an option, the higher charges associated with hiring them could be an issue with small businesses. This is yet another area where big data could play a major role with its ability to provide better logistics using the predictive analytics capabilities.
Big data is still evolving, and small businesses are at a unique position to leverage this opportunity, which could help to keep them competitive and maintain a profitable business for a long time. Don’t think that just because you own a small business that big data doesn’t apply to you. Yes, you must still build a customer base, but data can help you make future business plans, fix current problems, and fine-tune your business practices in order to succeed. The information for this article was provided by the professionals of Map A Data Center, a top data center that provides listings to help business owners select a data service.