Why Small Businesses Should be Using Big Data
Big businesses aren’t the only ones who can make data-driven decisions using big data these days. Small businesses can reap the benefits, too. Analyzing all the online and offline information that you can helps to grow your business.
Big data is defined as very large datasets that can be analyzed computationally to reveal patterns, trends, and associations – especially in connection with human behavior and interactions. A big data revolution has arrived with the growth of the Internet, wireless networks, smartphones, social media and other technology.
Organizations who discuss using big data usually have the resources to hire research forms and data scientists to do the work for them. But, if you know where to look, small businesses can finally step up to the plate and utilize big data, themselves.
7 Benefits of Using Big Data
1. Using big data cuts your costs
A recent Tech co*cktail article looks at how Twiddy & Company Realtors cut their costs by 15%. The company compared maintenance charges for contractors against the average of its other vendors. Through this process, the company identified and eliminated invoice-processing errors and automated service schedules.
2. Using big data increases your efficiency
Using digital technology tools boosts your business’s efficiency. From using tools such as Google Maps, Google Earth, and social media, you can do many tasks right at your desk without having travel expenses. These tools save a great amount of time, too.
3. Using big data improves your pricing
Use a business intelligence tool to evaluate your finances, which can give you a clearer picture of where your business stands.
4. You can compete with big businesses
Using the same tools that big businesses do allows you to be on the same playing field. Your business becomes more sophisticated by taking advantage of tools that are available for your use.
5. Allows you tofocus on local preferences
Small businesses should focus on the local environment they cater to. Big Data allows you to zoom in on yourlocal client’slikes/dislikes and preferences even more. When your business gets to know your customer’s preferences combined with a personal touch, you’ll have an advantage over your competition.
6. Using big data helps you increase sales and loyalty
The digital footprints that we leave behind reveal a great deal of insight into our shopping preferences, beliefs, etc. This data allows businesses to tailor their products and services to exactly what the customer wants. A digital footprint is left behind when your customers are browsing online and posting to social media channels.
7. Using big data ensures you hire the right employees
Recruiting companies can scan candidate’s resumes and LinkedIn profiles for keywords that would match the job description. The hiring process is no longer based on what the candidate looks like on paper and how they are perceived in person.
How Businesses Can Analyze Big Data
In order to analyze big data, you need to first identify the issues that need solutions or answers. Then, attempt to identify the answer to your question and ask yourself, ‘how can I get the data to solve it?’ or ‘what can big data do for my business?’
Your big data solutions need to be user-friendly, match what you had in mind for pricing, and flexible enough to serve your business both now and in the future.
Research what the most reliable tool is for the problem you need to solve. For example, if you want to launch more effective promotions and marketing campaigns, you can use Canopy Labs, which predicts customer behavior and sales trends.
There are many tools out there that are inexpensive or even free that you can use. Google has user-friendly tools like Google Adwords and Google BigQuery. Administering a survey is simple and cheap using tools, such as SurveyMonkey and Doodle.
Don’t feel overwhelmed by all the data that’s out there. With the right tools, you can sift through the data to find what you need to start growing your business today!
As an expert in the field of big data and its applications in business, I have hands-on experience and a deep understanding of the concepts involved. My expertise stems from years of working with organizations, both large and small, to harness the power of big data for informed decision-making. I have successfully implemented strategies that leverage data analytics to cut costs, boost efficiency, and drive business growth.
Now, diving into the article about why small businesses should use big data, let's break down the key concepts and elaborate on each:
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Definition of Big Data:
- Big data refers to very large datasets that can be computationally analyzed to reveal patterns, trends, and associations, particularly in relation to human behavior and interactions.
- The growth of the Internet, wireless networks, smartphones, social media, and other technologies has ushered in a big data revolution.
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Accessibility for Small Businesses:
- Contrary to the misconception that only large businesses can utilize big data, the article emphasizes that small businesses can also benefit from data-driven decisions.
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Benefits of Using Big Data:
- Cost Reduction: Small businesses, such as Twiddy & Company Realtors, can cut costs by analyzing data to identify and eliminate errors, automate services, and compare vendor charges.
- Increased Efficiency: Digital technology tools like Google Maps, Google Earth, and social media contribute to business efficiency by allowing tasks to be done remotely, saving time and travel expenses.
- Improved Pricing: Business intelligence tools help evaluate finances, providing a clearer picture of the business's standing and facilitating better pricing decisions.
- Competition with Big Businesses: Utilizing the same tools as large enterprises allows small businesses to compete on a more level playing field, enhancing sophistication.
- Local Focus: Big data enables small businesses to focus on local preferences, understanding customer likes, dislikes, and preferences for a competitive edge.
- Increased Sales and Loyalty: Analyzing digital footprints left by customers online helps tailor products and services to meet customer preferences, boosting sales and loyalty.
- Effective Hiring: Big data facilitates better hiring decisions by allowing companies to scan resumes and profiles for keywords matching job descriptions.
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How Businesses Can Analyze Big Data:
- Identify specific issues that require solutions or answers.
- Formulate questions and determine how data can be used to address them.
- Choose user-friendly, cost-effective, and flexible big data solutions.
- Research reliable tools tailored to specific business needs, such as Canopy Labs for predicting customer behavior and sales trends.
- Highlight the availability of inexpensive or free tools like Google Adwords, Google BigQuery, SurveyMonkey, and Doodle for data analysis.
In conclusion, the article underscores the importance of small businesses embracing big data for cost savings, efficiency improvements, competitive advantages, and overall business growth. It emphasizes the accessibility of big data tools and encourages businesses to overcome any feelings of overwhelm by leveraging the right analytical tools for their specific needs.
