Smaller companies need big data, too—in fact, it’s everything. Read on to find out how the details of your customers’ preferences can determine the course of your business.
The term big data might be buzzing lately, but it has actually been in use for quite some time. Big data refers to the colossal amount of information businesses gather on their customers’ transactions and interactions. It’s what one does with that data, though, that makes all the difference.
Large conglomerates and budding startups don’t deny the power of big data. They are using it to heighten the quality of their products and services, improve their marketing processes and operations, and enhance their customer experience and relationships. All of this can sharpen the competitive edge of your business—and push your organization into the big leagues.
Big data has a colorful past, including controversial debates over how ethical companies are using customer data (even more so if businesses decide to disclose data to third parties). This article, however, focuses upon the use of data for the benefit of the customer, assessing consumer behavior and providing customers with a better overall experience.
There’s no denying the power of data-driven business decisions. Mistakes are minimized, risk is reduced—and, ultimately, the bottom line is positively impacted.
Let’s start with the basics. How can you gather big data? If you have an online business, you’re looking for the essentials: names and e-mail addresses. This information opens up a direct channel to your customers, allowing you to send them marketing updates (in the form of e-newsletters, for instance), e-surveys, and even forms to collect more data (their hobbies, likes, birthdays, etc.)
Next comes transactional data. What kinds of purchases are they making? When do they buy, and how frequently? What is their preferred mode of communication? All of this helps you figure out the kinds of products your customers like while analyzing their overall purchasing behavior.
Now that we have that sorted…the biggest mistake one could make would be to gather this goldmine, and then put it in an Excel file. There are several alternative options online for a minimal monthly fee.
Starting small is key. Often, companies that indulge in sophisticated big data overhauls find themselves overwhelmed with how tedious it can be. It can literally drain all of your energy and drive. Go with a free option first (or start out on a trial basis) before investing. Understand this newfound power. It may be the perfect fit for your vision, or it might be completely unnecessary.
Go for a solution that is easy-to-use, mobile-friendly, and cloud-based. Chances are, you don’t have a data cruncher on your payroll, so opt for simple but powerful solutions. Make sure you do your homework before signing up with a provider. Some companies do large-scale analysis, and others are quite niche. Read reviews, FAQs, tutorials, and blogs. Get acquainted before hitting the ‘pay’ button.
And most importantly, realize the value this capability will bring to your business.
Go big or go home.