- 1 Introduction
- 1.1 Why is it really important for companies to have a big data strategy in place?
- 1.2 1 How Big data Influences Price Differentiation
- 1.3 2 Improving Customer Responsiveness
- 1.4 3 The Big data Influx in Sales and Marketing
- 1.5 4 Infusing AI into Big data and its Related Technologies
- 1.6 5 Target audiences using geo-analytical data
It’s safe to say that we are under a data avalanche. Neil Armstrong landed on the moon using a minute fraction of the data that we use today. The data we are producing is bound to grow exponentially. It is doubling year on year as of now.
Looking at things at a corporate level, a large amount of the digital information falls through the cracks. This takes away valuable insights along with it. A report from Bain and Company tells us that 4% of the companies make proper use of data analytics. This means leveraging the proper combination of people, data and tools with the aim of improving revenues.
Why is it really important for companies to have a big data strategy in place?
The fortune 500 companies invest billions of dollars in big data solutions to do two things: One is to save costs and the other is to increase revenues. This is done by gaining market share by predicting future behavior accurately rather than playing the guessing game. Employees who are forward thinking use the rapidly advancing analytics solutions to manage their workforces in order to become more profitable and productive.
The main objective of any business is to increase revenue. Below are a few ways in which big data can help your business increase its revenue:
1 How Big data Influences Price Differentiation
Companies today are using big data analytics driven customer product level pricing strategies to meet their targets. A survey conducted revealed that operating profits can increased by 9% if there was a 1% increase in price. In order to increase profit margins significantly, a correct pricing strategy with big data as the catalyst will help achieve that.
2 Improving Customer Responsiveness
The modern B2C marketers use advanced data mining techniques and big data analytics to obtain better than before insights into customer behavior. In order to achieve the desired results, data analytics techniques must be used effectively and efficiently. This in turn will lead to the development of better relationship driven marketing strategies. This will help prompt better customer responsiveness and will lead to better sales and increased revenues.
3 The Big data Influx in Sales and Marketing
When we tap into the analytics umbrella it is ideal to invest in operational analytics, fraud and compliance monitoring, customer analytics and enterprise data warehouses. This is because all of these are considered facets of sales and marketing. Even though customer analytics is considered to be the most important of the lot, developing the other facets has led to a considerable increase in revenue per customer.
4 Infusing AI into Big data and its Related Technologies
The needs of clients are always evolving and to deal with these needs, big data analytics has changed the sales and marketing channels altogether. What this has done is, it has left a huge bandwidth gap for the existing systems while managing tasks. This is why companies are now shifting to artificial intelligence and automation to cope with these challenges. Smart and scalable systems are being created using insights from big data analytics which are being used to perform automated contextual marketing.
5 Target audiences using geo-analytical data
Geo analytical data is extremely important today. Companies are making use of this data to focus their go to market strategies. This way they do not have to waste time on hit or miss experiments. With geo analytical data they can segment territories with higher sales potential and reduce their go to market costs.
Some of the important technologies under big data analytics which have been making businesses thrive are:
In memory data fabric
Knowledge discovery tools
Other than increasing revenue, big data analytics provide other benefits to companies as well. A few of them are:
- Organizational costs are reduced.
- Brand loyalty can be maintained.
- Workforce productivity and efficiency is increased.
- Helps HR hire smarter people for smarter jobs.
- Business strategies can be built based on analytics insights.
Big data technologies have evolved today and have become mainstream success factors for businesses. They have covered almost every domain that there is to cover. Today, the amount of data that is being generated is extremely vast. With this being the case, even the smaller companies cannot stick on to maintaining data using older systems. If these companies fail to move on to big data technologies, they will become redundant and extinct.
Big data analytics has become the guiding principle behind most of the business activity today. Most of the companies today are data driven and have automated most of their processes. Big data lends itself in a big way to artificial intelligence technologies like machine learning and smart personal assistants. Literally every department in an organization benefits from big data.
Abhimanyu is a sportsman, an avid reader with a massive interest in sports. He is passionate about digital marketing and loves discussions about Big Data.