By now, most people have heard the term “big data,” and are aware of the impact it has had across almost every industry. Today, big data’s usage has extended beyond the tech industry to include healthcare, education, governance, retail, and manufacturing, just to name a few. Just about every enterprise and organization is already leveraging the benefits of big data, particularly to inform data-driven decision making. In fact, according to Statista, the global big data market will grow to $103 billion by 2027, and in 2018, nearly 45% of professionals in the market research industry used big data analytics as a research method.
But fully leveraging the benefits of big data requires powerful analysis and interpretation. If you’re curious to see how your business could leverage the many advantages of big data, keep reading as we dive into just a few of the benefits of big data analytics tools.
What is Big Data Analytics?
Before we talk about the advantages, it’s important to have a clear understanding of big data and their analysis. According to Gartner, “Big Data are high volume, high velocity, and/or high-variety information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization.” Essentially, big data deals with datasets that are too large or complex for traditional data processing applications. Big data analytics is the process of analyzing and examining that data on a large scale.
Big data analytics can reveal hidden patterns and help stakeholders discover correlations and acquire important insights that could help them pivot their business in the right direction.
How Does Big Data Analytics Benefit Companies?
For businesses that learn to use them correctly, big data can help create breakthroughs and empower organizations to work in ways that improve outcomes. Here, we’ll dive into just a few of the benefits of big data analytics.
- Increased customer acquisition and retention
Whether a multinational firm or a brand-new business, the most important asset to any business is its customers. Regardless of the industry or business model, every company aims to establish a solid customer base, which is an indispensable ingredient for success. Big data tools can help businesses gather large amounts of customer data, which when analyzed and interpreted, can reveal patterns and trends such as customer taste and preferences, pain points, buying behavior, etc., allowing companies to create personalized products/services. As a result, businesses can better deliver exactly what their customers want, making it easier to attract and retain them and increase brand loyalty.
The insights gleaned from the analysis of big data can be used to inform and influence business decisions. Additionally, these insights can lead to new ways of thinking which are key to innovation. The insights you gain can be used to develop new products or services to address specific customer challenges, optimize customer service, improve marketing strategies, or find unique ways to grow a brand.
- Identification of potential risks
With the disruption of just about every industry, taking more and more risks has become standard operating procedure for many businesses. In fact, many businesses are thriving in a high-risk environment, which requires a risk management strategy. Big data has proven to be instrumental in helping businesses develop new risk management solutions. Amassing large amounts of data on specific risks a business faces is just the first step and can shape and improve the effectiveness of risk management models and create smarter strategies. From there, the analysis of this data can help a business see patterns and trends that might lead to risky scenarios, allowing them to course correct or prepare to take on the risk.
Big data has emerged as a powerful tool for businesses and opened up new worlds of possibilities. Increased customer retention and acquisition, better innovation, and identification of risks are just a few of the advantages big data analytics can offer. Stay tuned for part two of this blog as we dive into additional benefits that businesses can leverage.
If your business is looking to better understand and leverage its data, reach out to Gemini Data. We can help you transform data and analytics by enabling you to easily and intuitively interact with data using storytelling visualization. We know how to create a narrative from massive amounts of data, giving you the context and commentary you need to appreciate an insight and integrate it into your business strategy.