Here’s what to expect from big data in the next twelve months
It wouldn’t be wrong to say that most businesses in the past operated like a rookie shooting targets with bullets made out of different materials, hoping some, if not all, might stick.
For better or for worse, the age of automation brought in intelligent machines that are now challenging human supremacy in a growing number of fields. Big data, machine learning, and automation are now casually helping businesses make efficient and more intelligent decisions daily.
A Data-Driven Economy
Big data is now making a significant impact on the global economy. The global market for big data is expected to rise to nearly $67 billion by 2021. According to Andreessen Horowitz, 90% of all the data in the world was generated in the last two decades. Today, 2.5 quintillion bytes of data is created every day and the pace is set to accelerate in the coming years. Learning how to make sense of this huge amount of data is proving to be promising for enterprises of all sizes. Welcome to a data-driven economy, where all great business decisions are driven by data.
Benefits for Businesses
With data multiplying at such a rapid pace, it has never been more important for business owners to adapt to digital transformation. This is something that every entrepreneur must understand in the coming years so that they can find ways to utilize the full potential of big data and substantially maximize their productivity as well as return on investment.
A few ways in which big data can provide big benefits to businesses are:
- Getting more accurate answers quickly
For an entrepreneur, a simple question like “Who are my 10 best customers?” could take months of research to answer. A business team could take 60 days or more to analyze everything to come up with the best answer to such a question and even then, it could be miserably wrong. But, with the help of a robust big data business intelligence solution, answering these questions can be a matter of a few hours. One of the biggest benefits of big data is the ability to ask and answer questions more robustly. The whole process of answering complex questions can be shortened from months to days and even to minutes.
- Understanding consumers better and predicting their behavior
“More than 150 zettabytes (150 trillion gigabytes) of data will need analysis by 2025.” — Forbes
Market research is an area which has benefited from the big data revolution. Accessibility to large data sets and cutting-edge cloud technology has enabled companies to gather and analyze over a million pieces of information in just a few minutes. Advances in predictive analytics and deep learning have further streamlined this process enabling businesses to increase the success rate of their marketing strategies. However, a lot of consumer data is useless, so the key is to collect the right data by studying the types of customers that convert and the behavioral factors that compel them to make a purchase.
Data can also be used to predict consumer behavior by displaying the patterns in which consumers shop and interact with a business. This can be leveraged to provide relevant solutions to customers by identifying what they want and when. Perhaps the most quoted example of this big data application is how Target figured out a teenager was pregnant before her father did.
- Exploring trends
Google, one of the largest data farming companies in the world, offers Google Trends which allows its users to search for top trends based on terms or keywords. With tools like these, a company can easily find the right pattern related to a niche which can help them structure their future offers.
- Targeting adverts
“After years of cautious enthusiasm, marketing and advertising technology sector is now able to embrace big data in a big way.” — Andrew Medal
Businesses have lost millions of dollars in running advertisements that turn out to be disastrous. This happens when people give little or no attention to the research phase. Big data can save human resources by allowing companies to gain accurate customer insights before launching their new campaigns. This process is carried out through a similar approach used by advertisers and marketers which involves monitoring customers’ online activity, point of sales transactions and changes in customer trends. As a result, the final campaigns turn out to be more focused and target just the right audience.
- Risk management — be more confident with accurate data
Regardless of the sector, a risk management plan is a serious investment for any business. Being able to anticipate a potential risk and mitigating it before it occurs is essential for a business to remain successful. Big data analytics has already proven to have played a significant part in the development of excellent risk management solutions. These solutions allow businesses to quantify and model risks that they face regularly and then empower them to make better decisions to create smarter risk mitigation strategies.
Benefits for Consumers
Big data is all about enhancing the customer experience these days. From recommending users what they would like to watch to suggesting products to buy, data is enabling companies to win hearts in every sector one can think of. In fact, consumers now expect brands to monitor their online activity so that they can be served better.
Here are some more benefits that big data promises the consumers of tomorrow:
- Smarter personalized shopping experiences
Smart chatbots, virtual stylists, and similar product recommendations are a few of the many innovations that came forth with the big data revolution. Welcome to the age of the customer, where companies are scrambling to keep their customers happy by providing them with superior customer experience through the power of data.
- Reduced costs, better deals
Targeted marketing using data not only provides relevant offers to customers but also helps businesses cut down prices for their products and services. The cost to email 200,000 highly targeted prospects versus marketing to an entire city can have a significant impact on the overall cost of those products and services a company offers. Hence, data is a critical cost-reducing tool for businesses of all sizes.
- Improved communication through consumers’ preferred channels
In the future, big data and automation promise customers quicker responses to their queries through their preferred channels, on their preferred device, at any time of the day.
This is only the beginning of what big data can offer to the world. Data never sleeps and it continues to grow with every passing second and with it grows the number of possibilities in which it can be used to benefit us all. As technological advancements continue, data gradually becomes more readily available to more and more organizations. Hence, it is up to these organizations to ensure that it is used in the best ways possible to serve the consumers in the future.
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