In the digital age, all information is stored in the form of data. If you’re using a smartphone, it generates data in the form of contact, photos, videos, e-mails, searches, or music. Approximately 40 exabytes of data are generated by each user. Now multiply it to five billion smart users. That’s how much data is produced by smartphones only.
All this data is difficult to process by the human mind. It’s difficult for even traditional computers to handle. This is what’s called big data. Do you know how much data is generated on the internet per minute? Here’s an estimate:
- 2.1 snaps are sent through Snapchat
- 3.8 searches are performed on Google
- 1 million photos are shared on Facebook
- 4.5 million videos are watched on YouTube
- 188 million emails are sent
That’s a lot of data to be processed. Let’s begin by understanding when data is qualified to be called big data.
How do you classify any data as big data?
This can be done by the concept by 5 Vs — Volume, Velocity, Variety, Veracity, and Value. Let’s understand these by taking the Medical sector for instance. Hospitals across the globe generate massive amounts of data. 2314 exabytes of data are collected annually.
This data can be in the form of patient information and test results which are generated at a very high speed. This contributes to the velocity. The variety includes structured data like excel files, semi-structured data like logs, and unstructured data like X-ray images.
The accuracy and trustworthiness of this data come under veracity. Analyzing this data can benefit the health sector tremendously. At last, the results like faster detection of diseases reduced treatment cost or better treatment is the value of the data.
How does big data help businesses?
Data improves the efficiency of businesses significantly. Businesses in any niche need information about user behavior so that they can improve their overall experience. Taking the gaming industry for instance. Games like Call of Duty or Halo, analyze what time a user pauses, plays, and quits the game. This helps them with timing their product launches.
For retailers, data is their biggest asset and biggest challenge. It’s crucial to understand and engage their consumers. It helps them plan efficiently and effectively at the hyper-local level. Data is at the core of effective store organization. When it comes to supply chain management, data means visibility and flexibility at the global level.
Data has been a part of retail for a very long time but big data improvises it even further. Retailers who use big data can immensely reduce the risk factor in their supply chain and manufacture. Businesses can hire experts in DBA services in SQL servers to keep track of important data.
What does big data tell you about customers?
Without big data analytics, you miss out on valuable information about your customers. You miss engaging them with the right kinds of offers and products that they’re searching for or maybe didn’t even know they want it. Big data allows businesses to target customers with personalized suggestions.
It helps you track prior customers behaviors and predictive models. This includes acquisition pattern analysis, collaborative filtering, customer-specific scorecards, real-time store sales modeling, and can even determine optimal pricing for individuals. This information about what a customer will purchase and for much is incredibly useful.
Brilliants software allows businesses to compare a customer’s history to others like him, so they can make more accurate predictions and suggestions. Big data helps to measure, monitor, and model business performance in real-time. Businesses can understand exactly what customers expect from them, without even asking.
This helps with customer acquisition and conversion which translates to increased revenue. All this is done for a significantly low cost. On top of all these benefits, big data creates flexibility at the time of supply volatility and market uncertainty. Businesses can now control costs and enjoy supply chain coordination.
Big data in marketing
Data works wonders in marketing; it helps businesses to stay relevant in an increasingly competitive marketplace. Analyzing data helps businesses create a target, a message, and a medium for their advertising campaign. This is used to nurture your target market. When the audience interacts with the campaign, their reactions are analyzed.
The results are used to polish the campaign even better to get results out of them. Digital marketing especially depends on this data to create successful marketing campaigns. The accuracy of this analysis is astonishing. It drives awareness and conversion for businesses.
Big data is the future when it comes to business management. It’s the key to your customer’s heart. If you’re not using it right now, you’re lagging behind your competitors. Your customers know more about you than you think, and you should know them. You can decrease the risk in your business. This will result in more sales, more targeted campaigns, and less wasted money.