Can big data provide similar opportunities for small businesses and retail traders the way it does for large corporations? This remains one of the most commonly asked questions amongst many venturing entrepreneurs. For decades, big companies like Google and Facebook have benefited from big data; and they still are! The fact that the giant companies have more self-generated data doesnt mean big data harvesting is out of small businesses reach. Interestingly, big data is even more suited to smaller businesses because it is easier for them to act on data driven insights. So how best can small enterprises make use of big data and analytics for their own benefit?
1. Identifying Essential Trends
Being able to monitor particular behaviours and patterns makes it possible to predict future outcomes. Whats the likely change in demand for your services of products in the next few days, weeks, or even years? What factors are likely to influence or trigger such changes? With analysis of big data, getting answers to such questions become easy. Previously, trend analysis and predictions were out of instincts but not anymore. Using trending topics from various sources like Facebook and Twitter, service providers can easily have an idea of what the consumers want. The emergence of services such as Trend Hunter and Trendera has made it even easier to collect data that is useful in answering particular questions.
With recent technology, it is now possible to assess the movement of customers in both brick and mortar shops and online outlets. Using this data alongside external data such as the time of the year, economic conditions and weather, data experts can predict what people are likely to buy during certain times.
2. Understanding Customer Behaviour
Thanks to big data, small businesses can now have a concise idea of their customers behaviours. What makes them tick? What prompts them to buy particular goods? What are their preferred shopping techniques? What are they likely to buy next? With big data, it is possible to get answers for such questions and more.
Through feedback provided by clients, companies can analyse the feedback and implement necessary measures to improve user experience. Through product and service reviews, it is assessing the needs of clients. Other useful data sources that can be used for the same include customer service logs, sales data, text analytics, public data sets,Seo and social media. The increased use of social media by consumers has made it easier to collect data necessary for identifying target markets and analysing client feedback. In the long term, this method has proved cost effective.
3. Recruitment and Management of Staff
With sufficient data, hiring out appropriate candidates can become an easier task. Big data helps in identifying better recruitment channels for engaging potential employees. Already, companies are able to access data from recruitment sites and social media, which are critical in finding the most suitable candidates for various job positions. It is even better when it comes to managing talents. In the past, companies have generated stocks of useful data like productivity data, absenteeism figures, staff satisfaction data, and personal development reviews. This way, small and medium size businesses are able to assess candidates for job promotions.
4. Optimising Business Operations
Big data has consistently been used in improving everyday operations in various businesses. Data from business processes generating data like customer ordering systems can be useful in optimising efficiency of related processes. Take for instance small manufacturing companies. Machines can be connected to generate data at intervals. In the case of retail stores, data generated from various sources like social media, web search trends, and weather forecasts can be useful in stocking the stores with the most relevant products for that season. For those dealing in supply chain, it is even better. The use of GPS and sensors enable seamless tracking of goods or delivery vehicles in addition to optimisation of routes.
5. Generating Extra Revenue
Considered critically, data can turn out to be an essential aspect of your business model. Small businesses can end up earning extra income from generated data. In case of larger corporations like Facebook, which is free to users, advertisement has evolved to be an integral part of their revenue sources. Some businesses need particular data about consumer in order to run their advertisements in an effective way. They end up paying for such data, creating an additional revenue stream for Facebook. In a similar way, small businesses can monetize the generated data. By providing value added services or selling generated data to third parties, businesses can easily boost their incomes.
6. Assessing Level of Competition
The progress of your closest competitors can give you an idea of how well you are doing in a particular industry. In the past, small businesses relied on rumours and stalking their competitors shops and websites to find more about their competitors services or products. In the wake of technology, essential data has been made readily available without the need to go out and look for them. Google trends and social media analysis can give insight on the popularity of a particular brand. How often is a brand mentioned by customers and what do they say about it? Using data from platforms like Twitter, you can make critical comparisons between your company and the closest rivals.
Nevertheless, it is worth noting that your competitors can also take advantage of such data and gain competitive edge over you. At the end of day, the one who is consistent in analysing the trends and implementing the generated data insights will have the widest smile.
Conclusion
Big data is consistently revolutionising the corporate industry. While many larger corporations have profited from such data, several smaller and medium size businesses are yet to pick up the trends. For smaller businesses with hopes of sharing a fair share of the market, ignoring big data can prove a costly venture. Instead of waiting to figure out if big data is for you, you should develop workable strategies to reap big from big data exploitation.
