Why is Big Data Important For Your Business?
You’ve heard of big data before, but you’re a little confused as to why your business needs it. In this article, we’ll answer the question, “Why is big data important?” with ten reasons why.
Why is big data important to business? How important is it really?
Well, it’s worth a substantial investment for big companies out there. In fact, big data and analytics for business is a $150.8 billion industry in the US alone.
So what’s the big deal with big data?
Here are ten reasons why you need big data in your organization.
1. Effective Reporting
When asking “Why is big data important?” the first answer that tops the list is effective reporting.
There is no point in data collection if it doesn’t provide valuable insights for a company. Big data is one of the ways businesses are collecting analytics for reports that can drive growth.
Companies are collecting big data now, even metrics they aren’t sure how they’ll be used yet, in order to create plans for the future.
2. Automation and Integration
Going to implement ERP or a centralized database? You’ll need big data to populate it.
Cohesive systems for cross-department communication need big data. It’s the language software will use to translate complex information into relevant insights.
These insights then become actionable data for employees.
Creating an integration system in this way can help improve efficiency, reduce redundant data entry, and drive growth.
3. Market Research
You need market research to help you understand and run your business.
Is understanding and running your business something you’re struggling with? Luckily, there’s help. Learn more here.
Big data allows you to gather information for market research. It can give you insights such as:
- What your customers are most likely to buy
- How different factors affect purchasing behavior
- What products or services have the most growth potential
- How effective your marketing is
And much more!
Without this information, it’s impossible to make sound business decisions.
4. Customer Satisfaction
The collection of big data allows you to enhance the customer experience.
Today’s consumer is more educated and savvy than ever before. They’re looking for a unique experience.
Big data insights can allow you to create something personalized and unique. It’s also an opportunity to get innovative and ahead of your competition.
You can monitor and collect data on:
- How customers are interacting with your brand
- Brand loyalty and repeat customers
- Customer satisfaction and influencers
This information can help you focus on growing the areas your customers are craving. And getting rid of the things your customers are sick of seeing.
5. Improved Efficiency
Your companies productivity can greatly improve from big data insights. Big data allows you to identify bottlenecks in operations.
These bottlenecks slow down business development by sucking resources, both in labor and cost.
Once big data is used as a tool to identify where this is happening, it can then be used to create reports for insights into the ‘why’.
There can even be ways big data can help you implement technology for improved efficiency.
Sometimes a bottleneck happens because a system is too convoluted. Or possibly too many variables are subject to human error.
These are great places to explore introducing AI (artificial intelligence) to integrate with your big data.
6. Cost Reduction
Big data integration is a hefty investment… Initially. But in the long-term, it can dramatically reduce overhead costs.
This is because big data collection systems can reduce the need for IT department staff.
The real-time big data systems are a more effective tool for reporting, sorting, and storing relevant information.
It also increases data accuracy. This can dramatically reduce costs in several ways, including:
- Eliminating the need to double check data entry
- Reducing time needed to find relevant data
- Getting rid of the need to make sense of data to gather insights
- Reducing human error to save time
7. Reputation Management
The best business advice you’ll ever find involves reputation management.
A company will always go under without customers. The best way to create loyalty is through reputation management.
Your business is inevitably your brand. People need to know, like, and trust your company in order to refer the products and services.
Big data allows you to manage your reputation in several ways. You can gather insights into:
- How customers are interacting with your marketing
- What organic conversations are taking place around your brand
- How often you’re getting repeat customers
- How many customers are coming from referrals
These insights then allow you to create a game plan to manage your reputation. A lot of this reputation management will take place online.
Social media, for example, is a great tool for marketing business. It’s also ruined many companies reputations in the past.
Big data ensures you’re not turning a blind eye to pertinent information about how your company is being perceived.
8. Strategic Business Development
Big data give you the insights you need to create strategic business development plans.
Rather than being founded on ‘a hunch’, the metrics can give solid foundations for reporting.
This reporting, in turn, can be used to highlight anomalies — or a lack thereof — to instigate important conversations around business growth.
9. Comparative Analysis
How do you stack up against the competition?
Big data collection is a great way to stay on your A game when it comes to the competition. You can compare your numbers to industry averages to see how you’re performing.
This is important to remain competitive!
It’s easy to get absorbed in what’s going on in the company and not keep a tap on the industry as a whole.
Big data give you the tools to stay tuned in.
10. Predictive Power
Ultimately, big data technologies are important for predicting the future.
While not perfect this is as close as we can get to prepare yourself for what’s to come. Big data uses metrics from the past to show us patterns, and these patterns help us see what’s to come.
This is what helps businesses strategize for the best outcome.
How will you use big data to reach your company’s goals?
Why is Big Data Important for Your Business?
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