Seven Benefits of Big Data and Analytics, and Reasons to Consider It
The concept of "big data" has been around for a while, but it's only recently that big data has revolutionized the business world. Today, most companies have figured out how to capture the massive amounts of data flowing into their business and transform it into actionable insights through analysis. The benefits of big data and analytics make them a must-have tool for companies looking to unlock the potential of their business. For professionals, the field of big data analytics offers a wealth of opportunities and is a worthwhile next step in career development.
What is Big Data and Analytics?
"Big data" refers to extremely large amounts of data and data sets, including structured and unstructured data from multiple sources, which are so large that traditional data processing software cannot capture, manage or process them. Complex big data can be used to solve business problems that were previously difficult to reach.
The characteristics of big data are usually summarized as the "three Vs" - the variety, volume and velocity of data, which can come from publicly accessible sources such as websites, social media, cloud, mobile applications, sensors and other devices. Enterprises access this data to understand detailed information about consumers, such as purchase history, search history, viewing content, preferences, interests, etc. Big data analysis uses analytical techniques to examine data to discover hidden patterns, correlations, market trends and consumer preferences. Therefore, analysis helps enterprises make smart business decisions, thereby achieving efficient operations, customer satisfaction and profit growth.
Who is using big data and analytics?
Large businesses around the world are leveraging big data and analytics to achieve great success.
Online retail giant Amazon uses its vast database to access customers' names, addresses, payment information and search histories, which it uses in advertising algorithms and to improve customer relationships.
American Express Company uses big data to analyze customer behavior.
Marketing leader Capital One uses big data analytics to ensure the success of its customer offers.
Netflix uses big data to gain a deep understanding of the viewing habits of international audiences.
Brands such as Marriott Hotels, Uber Eats, McDonald's, Starbucks, etc. have also been using big data as part of their core business.
The most attractive advantages of big data and analytics
Regardless of the size of the business, all industries can benefit from the effective use of big data. The benefits of big data and analytics include better decision making, greater innovation, and product price optimization. Let’s take a closer look at these key benefits:
1. Customer acquisition and retention
Customers’ digital footprints reveal a lot about their preferences, needs, purchasing behaviors, etc. Companies use big data to observe consumer patterns and then customize products and services based on specific customer needs, which greatly improves customer satisfaction and loyalty, ultimately contributing significantly to sales growth.
Amazon uses this advantage of big data to provide the ultimate personalized shopping experience, recommending products to customers by analyzing factors such as previous purchase records, other customers' purchasing behavior, browsing patterns, etc.
2. Precision and targeted promotions
Big data enables companies to provide customized products to target markets, thus avoiding wasting a lot of money on ineffective promotions. With big data, companies can analyze customer trends by monitoring online shopping and point-of-sale transactions. These insights are then used to design targeted marketing campaigns, helping brands meet customer expectations and build brand loyalty.
3. Identification of potential risks
Enterprises operate in a high-risk environment and therefore require effective risk management solutions to deal with problems. Big data plays a key role in developing effective risk management processes and strategies.
Big data analytics and tools rapidly reduce risk by optimizing complex decision making for unexpected events and potential threats.
4. Innovation
Insights gained through big data analysis are key to innovation. Big data enables you to update existing products/services while innovating new ones. The large amounts of data collected help businesses identify what works best for their customer base. Understanding what others think about your product/service helps with product development.
These insights can also be used to adjust business strategies, improve marketing techniques, and optimize customer service and employee productivity.
In today’s competitive market environment, businesses must implement processes that help track customer feedback, product success rates, and monitor competitors. Big data analytics facilitates real-time tracking of the market, allowing you to stay ahead of the competition.
5. Complex supplier network
Companies using big data are able to provide higher-precision insights to supplier networks or B2B communities. Suppliers can apply big data analytics to circumvent the constraints they typically face. Big data allows suppliers to use higher levels of contextual intelligence, which is key to success.
6. Cost Optimization
One of the most attractive advantages offered by big data tools such as Hadoop and Spark is the significant cost advantage in storing, processing, and analyzing large amounts of data. The cost-reducing advantages of big data are aptly demonstrated in an example from the logistics industry.
Typically, the cost of returns is 1.5 times the normal shipping cost. Companies use big data and analytics to calculate the likelihood of product returns, thereby minimizing the cost of product returns. In this way, they can take appropriate measures to minimize the losses caused by product returns.
7. Improve efficiency
Big data tools can improve operational efficiency – Your interactions with customers and their valuable feedback help you collect a lot of valuable customer data. Analytical tools can extract hidden and meaningful patterns from the data to create customized products. These tools can also automate routine processes and tasks, thereby freeing up employees’ valuable time so that they can focus on tasks that require cognitive skills.
Why Choose Big Data and Analytics As A Career
The benefits of big data and analytics have proven that it has become a powerful tool that is indispensable to all kinds of businesses. Big data analysis has become essential for both businesses and professionals who have analytical skills. Big data analysts are in great demand nowadays because data itself has no value unless someone has the skills to analyze it.
Career opportunities in the field of big data and analytics are at an all-time high, and companies are searching for qualified data professionals who can help them tap into the true potential of big data to positively impact their business decisions. People with big data analytics skills are receiving lucrative compensation packages, with salary trends showing exponential growth. Many IT professionals are looking to invest time and money in data analytics training. All of this clearly indicates that big data analytics is here to stay, and building a career in the field of data analytics is one of the smartest decisions to make.
In Conclusion
Despite the many benefits of big data and analytics, there are still many untapped possibilities in the data space that are yet to be explored. As businesses seek to harness the power of big data, professionals with data analytics skills will be in great demand to not only drive business growth but also advance their careers.