Believe it or not, big data is no longer a buzzword. Ever since its emergence in 2005, it has now become the treasure trove of business intelligence and standard for every business and organization that wants to scale and keep pace with the rapidly transforming consumer landscape.
But why does big data matter now more than ever before? Why now? Well, shockingly the answer is Covid-19. Professor Michael Davern CPA chair of accounting and business information systems in the Faculty of Business and Economics at the University of Melbourne says:
“The coronavirus crisis is a catalyst for structural change in the way consumers behave, the way we work and live,” he says. “Big data has the potential to provide early indicators of the nature and extent of that change.”
This statement is a testament to the fact that big data holds great potential for predicting the behavior of consumers and can aid businesses in making informed decisions on the premise of that analyzed data.
There would be no exaggeration to say that, COVID-19 has massively influenced consumer behavior – whether you look at the healthcare sector, education, or the economy at large – everything is disrupted in its own way. The global pandemic has also torn apart many companies and halted their progress. But the large amount of data produced during COVID-19 is helping businesses in discerning and analyzing the transformations in customer behavior. According to statistics in 2020 every person produced 1.7 megabytes of data per second.
On the basis of this data, companies are able to make informed decisions about various aspects of their businesses via predictive forecasting. A popular analytics strategy analyzes data, fluctuations, and trends to make predictions about future outcomes. Businesses with the help of big data can master customer or consumer data at every touchpoint from sales to marketing services – to deepen customer loyalty and steer profitable growth.
There are so many ways big data can help businesses such as in terms of revenue – big data, and predictive forecasting can project sales revenue for the upcoming seasons. In addition to this, it can also recognize the malfunctioning revenue streams and can adjust the revenue funnel to optimize to the ever-changing market demands and pricing. The data can also forecast the behavior of the consumers thus helping the business to do more targeted advertising, therefore saving companies money, effort and time.
Other than this, big data also provides insights into the high-value customers to suggest the most relevant methods of engagement. In contrast to traditional data collection methods, businesses can assemble data on millions of consumers by analyzing digital records. This information with the aid of new analytical techniques can be utilized to get valuable insights into the psychological states of consumers which in return can help in making informed marketing and sales strategy.
Suffice to say that big data fusion with analytics is dramatically transforming the world. Businesses around the globe are putting big data to work to procure customer insights to manufacture consumer-related products and services to accelerate their growth and maximize their profits. In addition to this, the utility of big data in all sectors of society like hospitals, e-commerce, fintech, and educational institutions cannot be denied too.
Experts believe that by 2025 463 exabytes of data will be produced daily around the world. Even though Big data can give businesses a high chance to interpret the behavior of consumers in this ever-changing landscape of sales and marketing. Yet it can pose challenges to the business world as well – such as lack of understanding, data professionals and tools, growth issues, data security et al. These challenges are inevitable but they can be mitigated with the right strategies and plan of action in place.