Big data seems like it’s on everyone’s lips nowadays. Does it really live up to the hype? Only when it’s in the right hands, it seems. The value of big data is very much like gold: less valuable in its raw form, and only able to live up to its highest potential in the hands of a very skilled goldsmith. Similarly, big data might be worth something in an apprentice analyst’s hands, but in the hands of someone who is extremely skilled at extracting data, it can be priceless.
The hype of big data has led to formation of data analyst companies all over the world. For some, this is a great opportunity to be a nominee director, for others, a chance to run their own company and calling their own shots. Data analysts take raw data and transform it into vital information that can be used to better the company of others, depending on its implementation and how it is used.
Consumer behavior is something that is largely looked at and enhanced with the help of big data. Taking into consideration your customer‘s shopping behavior, it can help enhance your operational efficiency to consistently deliver top notch service. You will also be able to use big data to analyze current market trends and figure out what is the optimum inventory levels for each branch, or what your company can do in order to further optimize on the current trends.
Take for instance, Asian trends point to a boba and salted egg yolk craze. Whether you are operating an F&B or not is irrelevant, you can implement this to your products in a creative manner. Fashion brands can release food-related clothing, merchandise can be made, contests that revolve around the trend can be rolled out on various platforms. The important thing is to get participation and from there you will be able to generate even more data for future reference. The age group and participation behaviors are all data that can be useful for any company.
When you look at it from a consumer standpoint, it enhances their user experience, first of all because it reaffirms the idea that the company is current, creative, and understands what the public wants. This can only build confidence in the company. If you have two similar companies, one that jumps on trends and the other doesn’t, which do you think is much more likely to be popular with the general public? Especially if the demographic revolves around youths.
Another benefit of big data is that you will be able to predict customer satisfaction or sentiment. This can greatly reduce any negative feelings which will be associated with the brand or product. McDonald’s and KFC and other giant-scale food retailers rely heavily on this to retain customer satisfaction and keep them coming back for more.
Research shows that just one dissatisfying encounter or experience is enough to put clients or customers off a particular company. While this can be salvageable through good customer service, it can be avoided entirely with data analytics and standard protocols developed through the data provided by market research and consumer behavior.
Of course, marketing and customer retention is not the only benefit of big data. It can also be used to increase in-house efficiency. Production, execution, operations, even hiring. According to data from a 2018 research by Work Institute, 77 percent of turnovers can be prevented with analytics. It can eliminate candidates that will not have a high chance of aligning with the company’s culture and also whether or not they will be happy at the company, based on their past performance. Costs associated with onboarding is an overhead that can be reduced with data analytics.
Imagine building a dream team with data analytics and having a team that is completely in sync with one another. This will increase efficiency, while reducing any overhead costs associated with hiring new staff and onboarding as well as training. Being able to cultivate a team that shares the same vision is every company’s dream because it can also increase productivity. While this might sound idealistic, there are also downsides to using big data in creating a team. The Conversation reports that it might create the opposite effect, whereby employees are constantly under pressure to fit a certain ideal, which will create an unstable and tense environment which will not increase productivity. It will be hard to focus on work when employees are constantly worried about whether they are living up to expectations, and simply going through the motions because they want to adhere to a perceived office culture.
There are definitely pros and cons to every new initiative, but when it comes to big data, the pros far outweigh the cons especially when implemented with care.
