Big Data refers to the vast amount of structured and unstructured data that organizations collect and analyze to gain insights and make data-driven decisions.
It encompasses the technology, tools, and techniques used to store, process, and analyze large and complex data sets.
The concept of Big Data emerged as businesses sought to gain a better understanding of customer behavior and trends through the analysis of large data sets generated from various sources.
By utilizing Big Data analytics, businesses can identify key customer segments, improve their products and services, and create new revenue streams.
Big Data Benefits for Business
Big Data is a powerful tool that can be leveraged by businesses to gain valuable insights and make strategic decisions. One of the biggest benefits of using Big Data is the ability to understand customer preferences and anticipate their needs.
This can help businesses create more tailored products and services, ultimately leading to increased customer satisfaction and loyalty.
Here are the benefits of Big Data for business:
1. The advantage of Big data is used as an insight to be able to understand customers and markets more deeply.
Many companies use big data to build analytics that can provide a 360° view of customers. This Big Data analytics collects data from various internal and external sources, then analyzes and presents it to customer service, sales, and marketing to help them do their job.
The big data analytic platform allows companies to make reports about their customers, such as customer names, addresses, income, and family members.
Some can even provide data on the history of the last call, email messages, chat history with customers, and customer browsing history, which shows the company’s website page.
Which customers have recently visited to be able to find out which products they are interested in. Besides that, Big Data analytics can also attract external information, such as customer social media posts.
Sophisticated big data platforms have machine learning and AI features that can study customer behavior. This platform can provide opportunities for companies to cross-sell or up-sell customers on certain products and customers.
Big data analytics platforms can also predict whether their customers will be able to stop using the company’s products and move to competitors’ products.
By knowing this information, the company can make marketing strategies such as providing discounts, adding service quality, and various other things to keep customers using the company’s products.
Some big data platforms can detect customer emotions when dealing with customer service. These platforms can suggest appropriate responses for customer service to take proper follow-ups to make customers satisfied.
2. The use of big data in helping to make business strategies and pricing
With business intelligence tools in big data analytics, companies can evaluate using company financial data such as company revenue and customer transactions.
With this data, companies can be helped to determine better business models and pricing. They can increase company revenues by focusing on products and services companies that have the highest profit potential.
3. Use of Big data to help control brand reputation on the internet
With big data sentimental analysis tools, companies can monitor what netizens talk about their brand, such as feedback, comments on company social media posts, statuses, and photos uploaded by netizens related to products or company brands to be able to learn more details.
You can read the article Using Big Data and AI for Brand monitoring.
4. The advantages of big data for operational savings
By using big data tools such as Hadoop and cloud-based analytic cost savings in business can be done. With large enough data there, these tools can help companies to analyze and also manage data more effectively.
Apart from that, by analyzing data such as operational costs and raw materials, companies can make improvements to expenses that are not too important and also make strategies so that operations can be even more efficient, such as finding cheaper and better quality raw material alternatives, using economical electronics.
Resources, outsourcing, and other things that can save operational costs.
5. Use of Big Data for Product Development
By using big data analytics, companies can see trends in customer needs and satisfaction so that they can be analyzed, developed, and also implemented to increase customer satisfaction.
6. Ensuring the company recruits the right employees
Recruiters, as well as HRD employees, can make use of big data to scan portfolios and LinkedIn profiles using keywords that match the job description.
In addition, recruiters can also determine the nature of prospective employees by checking their social media so that they can produce a better selection. Appropriate.
7. Big data to increase company efficiency
Digital technology that uses big data, such as Google Maps, Google Earth, and social media, can be used anywhere and anytime, increasing company efficiency.
With Google maps online, motorcycle taxi drivers or couriers can deliver packages quickly and precisely, with company social media able to interact with its customers at any time without incurring high costs for offline activities such as bazaars, open booths in malls, or concerts.
8. The benefits of big data in increasing sales and also customer loyalty
Big data helps businesses grow and helps companies improve their services and products according to customer wishes. History of customer transactions recorded digitally can help companies provide customers with more personalized products and services to make customers more loyal and increase sales.
9. Use of Big data to reduce decision-making time
With tools that work quickly, such as Hadoop and in-memory analytics, you can easily analyze large amounts of data, thereby speeding up the decision-making process.
10. Helping companies focus on local community preferences
With quite several customers spread across various cities, provinces, and even countries, companies can find people’s preferences in certain areas by utilizing big data analytics.
With the results of analysis from big data analytics, companies can create product and service strategies. It can suit people’s preferences in certain areas.
For example in song recommendations on the Spotify application, each country must have song recommendations that differ in preferences both from the language of the music or the type of song.