Big Data Applications In Small Businesses– Some of you may ask, can big data be as useful for small businesses as it is for large companies? The answer is, of course you can!
Even though small businesses have less self-generated data, that doesn’t mean it’s impossible to take advantage of large data sets.
On the other hand, insights from large volumes of data are sometimes more suitable for small businesses because their character allows them to move quickly based on the latest information.
Examples Of Big Data Applications In Small Or Medium Businesses
However, maybe not all business owners are aware of the possibility of utilizing this data. So, let’s see examples of big data applications in small or medium businesses below!
Understand the reasons behind customer loyalty
Through large data sets, a small business can understand consumer behavior: why they buy, which way of shopping they like the most, why they buy again, to what factors make consumers recommend a business to others.
Small businesses can also leverage data to better interact with consumers. For example by analyzing the feedback given by consumers regarding products or services.
There are many useful data sources, including internal company data such as sales reports and customer service documentation . Apart from that, you can also take advantage of data from social media, browser search history , to public data, for example census data.
Identify trends
Seeing and monitoring consumer behavior patterns predicts where your business is going. No exception, predictions about changes in demand for products or services and what are the triggering factors for these changes.
Previously, these trend changes were predicted on instinct. The good news is that now small businesses can identify changing trends more accurately by leveraging big data.
If you don’t have enough capital to hire expert staff in terms of data analysis, you can do a very simple method by observing social media trends. Trending topics show more than just what’s hot, they also show market preferences
Understanding competition
Previously, a small business might only know about the competition from chatting with fellow entrepreneurs or checking the competitor’s official website. Some may pretend to be consumers and visit competitors’ outlets to find out the service and quality of the products offered.
Now medium or small businesses can use more valid data to understand competition. You can check Google Trend to find out the popularity of competitors. You can also analyze social media to hear consumer comments about competing brands.
More than that, you can compare it to your own business. For example, do competitors’ brands appear more in mentions from consumers or whether consumer comments about your business are better than competitors.
Optimizing operations
Besides being used to look outside, such as analyzing consumer behavior and competitor strengths, big data can also be used by small businesses to optimize business operations.
There are many operational processes that generate large volumes of data sets. For example, machines for production and ordering systems or ordering systems .
By observing these data, businesses can find out the actual operational conditions. Then, you can look for ways to make operational processes more efficient.
Other utilization on the operational side can be done by retail businesses. Retail businesses can optimize the amount of product stock based on trending data on social media or search popularity on search engines.
Customize business models
Furthermore, data can even become part of the business model, leading you to new ways to make a profit. This has been proven to work in several large companies.
One that is quite significant is Facebook. This application can indeed be used free of charge by its users. However, the use of these applications generates very large volumes of data.
Then, we know that Facebook then earns revenue from advertising. Brands are willing to place ads because they believe their marketing campaigns will target specific targets based on insight data owned by Facebook.
In other words, data can generate new revenue streams for a business, including for small businesses. Based on the collected data, you can offer value added services.
For example, you can take advantage of customer membership data to offer services or products according to their preferences.
Conclusion
Big data analysis by small businesses can start as simple as utilizing various data that can be accessed around them. The reason is, ignoring large data sets is quite risky for small businesses.
Small and medium businesses need to take part in utilizing big data to identify opportunities and threats in the midst of competition. If you have trouble, now there is software that can be used to analyze the data.
Read Also: