In contrast with the common myth, small businesses need to make data-driven decisions just like big companies. This brings most of the benefits that are explained in this article. Big data is a large dataset that is analysed through various computations to reveal trends, patterns and associations. With the growth in smartphones, wireless networks and social media and cloud computing, a data revolution has taken place. While big organisations work with data scientists and data-mining firms, small businesses can still utilise the data with various tools without breaking the bank. Here are some of the benefits of using big data to a small business.
1. It helps Increase Efficiency
One of the major drivers of business growth is linkages and relationships with partners in the industry and the target market. This requires extensive travel and research on both publics before making your moves. However, with big data, you can cut the costs involved in market research and prospecting. It gives you the market trends, best methods to engage your customers and the right touch-points to engage so that you pull these publics to your business. This, in turn, helps you engage your market fast and use the existing resources efficiently.
2. Big Data Helps Cut Costs
Cost is one of the variables the inhibit business growth. Small organisations cannot engage markets, tap into bigger resources and increase their capacity. Therefore, anything the enables you as the business owner to cut costs is welcome.
Big data helps in cutting costs using several methods. First, it allows the business to compare its costs with similar businesses in the industry so that you can get the best pricing from vendors.
You can also automate the maintenance cycle of your equipment such that you do not suffer from unexpected breakdowns and reduce costs of maintenance. Besides, you can also streamline your purchase process and eliminate errors in the invoicing process.
3. It Helps Grow Customer Loyalty
With everyone researching and buying online, the digital footprints that are left behind give a comprehensive view of our personality and shopping preferences. Therefore, a company looking at this data will know the customer likes and dislikes, beliefs, purchasing power, colour, aesthetics and capacity choices for a given market.
It can then use the information to tailor their offering to meet the need and wants of the market. This leads to increased sales. If the customers love the offering, they keep coming back and become loyal. Such customers are brand ambassadors who can help bring more clients to the business.
4. It Helps in Focusing on the Target Market
A business may have several target markets for a given product. In most cases, it repackages the product to appeal to a specific market and not the other. Unfortunately, the process of building a buyer persona is exhausting and may take up a significant amount of resources. However, with data housed in a VPS server, the business can focus on a local market or type of customer and determine the buying pattern fast. This enables the business to give the market a personal touch and gain a competitive advantage over the competition.
5. Businesses Can Use Big Data to Hire the Right Workforce
Recruiting new employees is no longer just about academic qualifications. Businesses need a candidate that can fit into their company goals, core values and drive their aspirations. Big data for small business helps small businesses identify such candidates on platforms like LinkedIn by using the right keywords. They can filter out candidates with variables such as market knowledge, experience, personality, personal goals and the previous market that he or she has served. These businesses can reach out to those candidates with offers or invite them to apply for opportunities in the organisation. The right employees are one of the major drivers in business growth.
Big data reveals the little market secrets that you may not point out in your normal research. It also helps you tap into the industry-wide data and data generated by the competition to your own advantage. As a business owner, consider utilising big data for small business to enjoy the benefits listed above.
About the Author
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. Other interests also include content marketing and self-development. Say hi to Patrick on Twitter @patrickwattpat.