When you hear the term ‘big data’, it often conjures imagery of corporate giants leveraging mountains of analytical data to squeeze as many pennies out of their audience as possible. And while this is rather apt (although, a little crudely worded, admittedly); how does it apply to small businesses?
In this article, we’re going to define ‘big data’ and talk about how it can be leveraged by you to grow your business online. Let’s get started!
The literal definition of the term ‘big data’ is: “extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions.”
However, the term itself is broadly used to describe data in general, with the word ‘big’ referring to the immense potential that collecting and analysing it can bring to small businesses.
The fact is, you don’t need ‘extremely large data sets’ to make informed business decisions. When collecting data through your website, it is possible to start gaining actionable insights on a much smaller scale – and then build from there.
You can collect and leverage big data in a multitude of ways and, as mentioned earlier, you don’t have to be a large business with tonnes of data to be able to do this.
Data is often overlooked by many businesses (of all sizes) despite how incredibly useful it can be. Here’s a quick glance at the ways in which big data can benefit you:
- Cost reduction: You can use big data to pinpoint inefficiencies in your business. This can be used to make cost-saving decisions, e.g., analytics might reveal that the large majority of your customers do not bother with gift-wrapping and thus doing away with the option could save you money (when executed throughout your entire business, these little changes can add up).
- Increased sales and revenue generation: Data can be used to reveal secrets into your customers’ shopping preferences and you begin to tailor your products or services to be more in-line with what they are truly after.
- Improved pricing decisions: You can use a variety of data financing tools to compare your pricing with competitors and increase or reduce yours accordingly.
- Gain a competitive advantage: Particularly on a smaller scale, focusing on your local market and leveraging data where some of your competitors are not, can help you add a more personalised touch to your operations and gain a healthy competitive advantage.
- Increased efficiency and overall decision making processes: Data can be used to influence all of your decision making processes throughout your business, from buying behaviour, promotions, and so much more.
When you go the extra mile you will be rewarded for your efforts. For example, businesses that use big data can increase their profits by at least 8% (and that’s not to mention all other areas in which you can benefit).
Understandably, the thought of collecting and analysing large amounts of data can feel like an overwhelming task – and perhaps something you have neither time nor desire to focus on. The good news is that when hiring an SEO agency to help with your digital marketing efforts, you can also use their data analysts to handle these requirements for you as well.
The principle behind using big data for your business is efficiency; running an airtight operation that is as smooth as it can be in all areas.