Businesses, big or small, across all industries can benefit from using big data effectively. The benefits of big data and analytics include:
• Better decision-making
New customer acquisation and retention
The digital footprints of customers reveal a lot about their preferences, needs, purchase behavior, etc. Businesses use BigData analytics to observe consumer patterns and then tailor their products and services according to specific customer needs. This goes a long way to ensure customer satisfaction, loyalty, and ultimately a considerable boost in sales.
Amazon, for example utilized this big data benefit by offering the ultimate personalized shopping experience, wherein suggestions pop up based on previous purchases as well as products that other customers have bought, browsing patterns, and other factors.
Focused and tailored-made promotions
Big data allows businesses to deliver customized products to their targeted market—no more spending fortunes on promotional campaigns that do not deliver. With big data, enterprises can analyze customer trends by monitoring online shopping and point-of-sale transactions. These insights are then used to design-focused and targeted campaigns that help brands live up to customer expectations and build brand loyalty.
Potential risks identification & prevention
Businesses function in high-risk environments, so they require effective risk management solutions to address issues. Big data plays a critical role in developing effective risk management processes and strategies.
Big data analytics and tools promptly reduce risks by optimizing complex decisions for unexpected events and potential threats.
Creativity and innovation
The insights you gain using big data analytics are the key to innovation. Big data allows you to update existing products/services while innovating new ones that customer been shouting for. Information on what others think of your products/services can help in product development.
The insights can also be used to twist business strategies, improve marketing techniques, and optimize customer service, employee productivity.
In today's competitive market space, it is necessary for businesses to implement processes that help track customer reviews, the success of products, and monitor competitors. Big data analytics facilitates real-time tracking of the market and keeps you ahead of competitors.
One of the most compelling benefits that big data analytics can offer include significant cost advantages for storing, processing, and analyzing large volumes of data. The cost reduction benefit of big data is aptly demonstrated through an instance from the logistics industry.
Typically, the cost of returns is 1.5 times higher than normal shipping costs. Companies use big data and analytics to minimize product return costs by calculating the chances of product returns. Thus they can take suitable measures to minimize product-return losses.
Improve overall organization efficiency
BigData analytics can improve operational efficiency—your interaction with customers and their valued feedback help to collect large amounts of valuable customer data. Analytics can then extract meaningful patterns hidden within the data to create customized products. The tools can automate routine processes and tasks, thereby freeing up valuable time for employees, which they can utilize to perform tasks requiring cognitive skills.