In the past, businesses looking to make money would simply throw cash in the direction they thought necessary. Quite simply, it was a “hit and hope” strategy that failed more often than it succeeded. Then, online companies came along and the industry started to change. Thanks to the internet, money was used wisely with relevant information about consumer habits and customer expectations. By 2018, Big Data had arrived on the scene and online firms are now using as many stats as possible to gain a foothold in the market.
That is a short overview, but, regardless of the effectiveness of numbers, there are still businesses that refuse to peruse the figures. Or, even worse, they don’t know how and shun them completely. There is no doubt that the world of Big Data is one of the biggest, single factors in making money online today. SEO, PPC and analytics all play a part, yet even they revolve around data.
Still, it isn’t wise to trust a “fad” without evidence. With that in mind, here are the ironclad reasons statistics and figures are gaining popularity with companies around the world.
Keeping Up With The Competition
CEOs and business owners hate to see this reason in black and white because it goes against their analytical nature. For number crunchers, the idea that the company should follow a trend just because of the competition is short-sighted. What if it goes out of fashion? What if it ends up costing the firm money? What if the rest of the market can afford to take a risk? These questions make it seem like a bad idea, yet the opposite is true. In an industry where market share is everything, a company like yours can’t afford to get left behind. A fad it might look like, however, it could soon turn into a legitimate business operation. If you are not on the bottom floor when it takes off and a competitor is, they have a massive advantage. The great thing about Big Data at the moment is that it hasn’t hit that point yet but it will do shortly.
Knowledge Is Power
An undeniable fact is that Big Data is a language which you have to learn to speak. Using the universal language of business doesn’t work with facts and figures as you have to be able to see the patterns. Within every data dump, there are answers to the company’s most needed questions, but you won’t be able to see them without the necessary tools. Of course, learning to speak the lingo is a metaphor for being able to spot the right trends and asking the correct questions. To do that, education is essential. For example, you might decide to self-teach and study as many figures as possible to locate the common denominator. After all, lots of entrepreneurs are intelligent and proactive enough. Others feel that studying a master of data science is a better option as it is managed by professionals. The choice is a personal one, but the one thing you have to remember is that some form of data education is vital. Without it, you are a blind.
The only way to make money online is through loyal customers. Sponsorship and advertising help, but they are limited. Consumers are a steady flow of revenue that come back to make a purchase again and again. In terms of money-making potential, there is no better resource. However, hooking customers and keeping them there is one of the hardest things in business. If it weren’t difficult, fifty percent of companies wouldn’t fail within the first year. Thankfully, Big Data is making inroads in interaction as it analyses all the data and provides invaluable feedback. For instance, a quick glance at your customers’ purchases might shed light on their intentions and hesitations. Not only does this help you provide products and services they want, but it helps to fine tune what’s on offer to increase sales. And, in a world of social media, it has never been easier to ask a person how they think or feel about a product.
Around $12 billion is spent on direct marketing in the financial services industry on a yearly basis. As you can see, the figure is huge and SMBs such as yours can’t keep up. However, there is no reason to spend a fortune on marketing when you have the right analytics tools. Frankly, Big Data can help produce customer-concentrated content which focuses on a specific group of people. If this sounds too narrow, you should broaden your thinking. Businesses love to splash the cash and advertise to as many people as possible as it seems like it will have the best effect. Sadly, a scattergun strategy is a waste of money as the chances of hitting a target is zero to none. Modern marketing is about specifying which demographic is likely to make a conversion and flooding them with information. Without Big Data, it’s almost impossible to figure out the groups to target, never mind come up with a tailor-made plan.
Increasing revenue and sales is an excellent approach yet it isn’t the only way to make money. On the whole, small businesses use data not to boost trade but to cut back on their expenses. And, it makes a lot of sense when you look at the numbers. Firstly, SMBs have a tiny budget compared with their rivals, especially in the first two years. Therefore, to try and compete with the rest of the market by spending money is short-sighted and dangerous. Rather, it’s better to keep the money in the bank and focus on alternative ways to stay out of the red. Secondly, new companies have a plethora of debts to settle as soon as they set up shop. From the moment you begin trading, there are taxes to pay, creditors on your tail, and overheads to disburse. Small business owners try and sell their way out of trouble and tend to fail. The firms which succeed are the ones that trim the fat and cut expenses to the bone. With the right data, picking the sectors to tidy up is straightforward and can happen in a short period.
What gets customers’ attention? Typically, it’s the quality of the product. Shoppers want the best of the best, and they will pay extra for the privilege. The problem in the past is that innovation centred on gut feel. Manufacturers decided what consumers wanted without getting into their head. As a result, the “upgrades” didn’t have the right impact and customers used to shop around, picking and mixing. When this happens, a company loses a person who might spend a small fortune in the future. So, it’s essential that any product innovation mirrors the base’s wants and needs. Of course, Big Data is a handy tool to have in this scenario as the stats tell you the customers’ desires to the letter. It may be that they need it to be slimmer and sleeker in design, or that they would like it to last longer. Once you have this info, you can develop products and services that are better than the ones which already exist.
Before you decide to create something new, take a look at your existing goods. Are they obsolete? The majority of bosses answer with an emphatic yes as they think they are too old and behind the times. But, most products and services are very practical and only need a small tweak to get them back in the game. Take fast food as an example. Almost every “new” meal which the big three releases are the same one with a tiny twist. McDonald’s Big Tasty burger, for example, is a quarter pounder with a secret sauce and tomatoes. Still, most fast food eaters won’t notice this as they order one and pay an extra $1.50 for the privilege. In fact, it doesn’t seem to matter even if people do realise. Thanks to customer data, you can perform the same trick and make money in the process. The key is to find an enhancement which appears to make a huge difference and doesn’t cost a fortune to manufacture. As a rule, the company website is an excellent place to start.
The Only Way Is Up
Finally, Big Data isn’t a fad which is about to go away anytime soon. In fact, it seems as if the trend will only get stronger with age. Therefore, to dismiss its effectiveness out of hand is a very silly and dangerous move. By the time you do accept its importance, it will be too late and the leaders of the industry will be too strong. Now is the time to learn and take in as much as possible for the future of the company.
After all, you just need to look at the numbers to know the last statement to be true.