Data is omnipresent in the modern world. We, humans, are transformed into data-generating machines with each one of us producing a mind-boggling amount of information. Companies all over the world are choosing to increase business profits by using Big Data solutions.
Data-Driven decision making is the new norm in this information-overloaded industry. Today there are many efficient Big Data Analytics Companies providing cutting edge data analytics solutions to businesses all over the world.
Big data is entrenching various sectors of the industry like Financial Services, Retail, Pharmaceuticals, Manufacturing, and IT. The technology is providing insights into consumer behavior that was previously unknown and further helping the companies in understanding their respective customers in a much better manner.
Benefits of Big Data in Business
Next-generation embedded analytics, auto-machine learning systems, and Artificial Intelligence systems are the various Data Analytics Trends that are shaping the future of Mankind. In this blog, we are going to discuss a few essential benefits of Big Data Analytics that can help you to save money and get the best ROI.
Cost Reduction and optimization
Using the various Big Data tools available in the market, companies can save money on storing, analyzing, and processing vast amounts of data. Big Data Analytics helps companies in optimally allocating various resources. One of the significant benefits of Big Data is that it reduces unnecessary expenditure by letting the decision-makers know the best use of a resource. By doing this, companies can reduce the cost substantially. Big Data helps the decision-makers by providing them with an accurate insight regarding the impact of various variables on the business process.
The Logistics Industry is an excellent example of reducing cost by using the power of Big Data Analytics. One of the significant reasons for ballooning expenditures in the logistics industry is the expense of handling returned products. On average, the price of returning a product is 150% higher than the actual shipping cost.
By using Big Data Analytics, the logistics companies can predict with a fair bit of accuracy the likelihood of a product getting returned. It will aid them in planning the shipping route in such a manner that when the product is returned, the cost is minimized.
Big Data Systems also help in improving the speed to market of a product/service. In today’s ever-shrinking world where globalization is the new normal, the pace is proving to be an essential determinant in the success or failure of a business. More often than not, we see that the company that delivers its products/services at a rapid pace enjoys a substantial advantage over a company that does not. The speed to market is an essential factor for startups; hence Big Data is necessary for the growth of startups.
By using Big Data Analytics, companies can design, produce, and transport products much faster than before. They know the pitfalls thanks to the advanced predictive algorithms which are prepared using vast volumes of data. Companies are leveraging the power of Big Data Analytics in developing accurate simulations that predict the performance of a product in various conditions. It helps them in improving the longevity of the product and in identifying multiple patterns. The defects in a product are identified and eliminated much before their actual launch. Thus, saving an ample amount of money on products/services before its launch.
Foster Competitive Pricing
Savvy business-persons know the importance of keeping prices competitive. Earlier businesses used to rely on data gained through their team, which was often delayed and insufficient to draw any conclusions.
Many times the pricing decisions were based on the price of the nearest competitor and not on a detailed scientific analysis. But with the advent of Big Data tools, now companies can know the ideal price and even vary it according to different markets and peak seasons.
The Big Data systems allow the companies to monitor the cost of their competitors effectively and maneuver their prices accordingly. The impact of Big Data on competitive pricing is evident in the Airline and Tourism Industry.
Many Airlines use surge pricing when an important event is happening at a particular destination, Like, the Rio Carnival in Brazil or the Olympics. While the practice is common, what Big Data has done is that it has provided surgical precision to the process.
For example, it would be wise to give an attractive discount to a frequent flyer who regularly boards your airline. You can segregate such customers easily using a Big Data system.
Boost Sales and Retain Customer Loyalty
Customer is the king they say, and kings need to be treated royally! Customer satisfaction is the most crucial metric that can either make or break a business. Big Data Analytics helps in boosting customer loyalty by allowing you to gain insights into the customer’s psyche.
Using Big Data Analytics, the customer service team of your company can continuously monitor the social media chatter and identify any dissent with your product/service. They can contact the customer before the customer contacts them; imagine the smile on the face of the customer! Big Data will help your organization in becoming proactive. It, in turn, will help in improving your customer loyalty.
Using Big Data Analytics, you can identify the individual preferences of each customer and quickly identify the ideal demographic. Customer Analytics can thus help you in acquiring new customers with ease. Moreover, the customer retention rate will improve by using a Big Data system.
By analyzing the online behavior of the customer, a Big Data analytics system will recommend various customer engagement methods. This can include customizing landing pages, building dedicated mobile apps, and tweaking the user experience to make it more personalized. Doing this will make the customer feel special and cared for, boosting customer retention levels through the roof!
Increased Revenue
By using the power of predictive algorithms, companies are growing their revenues. How many times has it happened that you found that Amazon has accurately predicted the products that you were looking for in the “stuff you might like section”? Like Amazon, many other multinational companies are also sniffing through the data of their customers to identify business opportunities. Big Data systems help you in analyzing the buying patterns of your customers, and this, in turn, aids in increasing the revenues substantially.
Big Data systems help in identifying critical up-selling opportunities that aid in improving the revenues. Location-based analytics provides valuable insights into the relationship between the location of the customers and their buying behavior. You can target your customers based on the various neighborhoods, cities, and countries that they stay and promote products that are preferred by the local population.
Risk Management
In every business, managing risks is essential, and Big Data can help you in crossing the risk management hurdle with ease. Every year a vast amount of money is lost due to various kinds of fraud happening in the market.
By using the different Big Data predictive algorithms, businesses can assess the probability of a customer turning out to be a fraud. For example, Financial firms can use Big Data to determine the credit risk of a particular customer.
Big Data can also help in identifying and eliminating various operational risks like safety hazards. By gaining knowledge about the probability of a safety hazard happening, the decision-makers can take precautionary measures in time and stop an accident from occurring.
Using Big Data in Product Development
Big Data is playing an important role in positively influencing the product development strategy. Any new product development involves a lot of experimentation. By using Big Data, the process can be speeded up as Big Data systems can analyze the previous research quickly and eliminate the guesswork.
Usually, selecting the right kind of data is very important while developing a new product. By using Big Data systems, you can aid your R&D team in choosing the correct type of data.
By researching the right kind of data, one can considerably speed up the process of developing a new product. Big data systems analyze large sets of information in real-time; this fastens up the product development process.
Marketing and Advertising
Big Data is playing a massive role in improving the effectiveness of a marketing campaign. Which advertisement will have a lasting effect on the customers? Which ad would be best for a particular demographic group? These are the questions that generally plague a marketer.
One of the most critical insights that Big Data provides is that it lets the decision-makers know which content can prove to be effective in targeting the customers. Big Data can let you know the strategies for improving the conversion rates of your advertisements.
By using Big Data Systems, the Marketers can know how to lower the average customer acquisition cost and also how to improve the customer lifetime value. These are essential metrics defining the success rate of any organization.
Big Data and Sales can prove to be a lethal combination to take your business ahead.
Wrapping up
Big Data Analytics is the next big thing in business, and it is a reality that is slowly dawning amongst companies. With this article, we have tried to show you the importance of Big Data in business and urge you to take advantage of this immense business opportunity.
Hire experienced Big Data Analytics Companies to attain your objectives in business. Big Data is the technology that is responsible for improving the productivity of your business by providing better visibility about the business processes to the decision-makers.
