The most valuable item for any company in modern times is data! Companies can work much more efficiently by analyzing large amounts of data and making business decisions on that basis. This means that Big Data Analytics is the current path to profit! So is it any surprise that more and more companies are gradually turning towards a data-based business model?
Big Data Analytics is much more objective than the older methods and companies can make the correct business decisions using data insights. There was a time when companies could only interact with their customers on one in stores. And there was no way to know what individual customers wanted on a large scale. But that has all changed with the coming of Big Data Analytics. Now companies can directly engage with each customer online personally and know what they want!
So let’s see the different ways companies can use Big Data Analytics in the real world to improve their performance and become even more successful (and rich!) with time.
1. Companies use Big Data Analytics to Increase Customer Retention
No company can exist without customers! And so attracting customers and even more importantly, retaining those customers is necessary for a company. And Big Data Analytics can certainly help with that! Big Data Analytics allows a company to observe customer trends and then market their products specifically keeping their customers in mind. And the more data that a company has about its customer base, the more accurately they can observe customer trends and patterns which will ensure that the company can deliver exactly what its customers want. And this is the best way to increase customer retention. After all, happy customers mean loyal customers!
An example of a company that uses Big Data Analytics to Increase Customer Retention is Amazon. Amazon collects all the data about its customers such as their names, addresses, search history, payments, etc. so that it can provide a truly personalized experience. This means that Amazon knows who you are as soon as you log in! It also provides you product recommendations based on your history so you are more likely to buy things. And if you buy lots of things on Amazon, you are less likely to leave Amazon!
2. Companies use Big Data Analytics to create Marketing Campaigns
How can a company reach new customers? Marketing campaigns! However, if a great marketing campaign can get customers for a company, a poor marketing campaign can make a company lose even its existing customers. And so Big Data Analytics is necessary to analyze the customer base and understand what people want so that the marketing campaign is successful in converting more people. This can be done by monitoring the current online trends, understanding customer behavior in the market and then cashing on that to create a successful marketing campaign.
An example of a company that uses Big Data Analytics to create Marketing Campaigns is Netflix. Have you noticed that as soon as you open Netflix, they have movies and series marketed specifically for you? They do this by collecting data on your watching habits and search history and then providing targeted adverts. So if you have been watching mystery movies recently, that’s what you will be recommended in the future as well!
3. Companies use Big Data Analytics for Risk Management
A company cannot sustain itself if they don’t have a successful risk management plan. After all, how is a big company supposed to function if they cannot even find risks ahead of time and then work to minimize them as much as possible? And this is where Big Data Analytics comes in! It can be used to collect and analyze the vast internal data available in the company archives that can help in developing both short term and long term risk management models. Using these, the company can identify future risks and make much more strategic business decisions. That means much more money in the future!!!
An example of a company that uses Big Data Analytics for Risk Management is Starbucks. Did you know that Starbucks can have multiple stores on a single street and all of them are successful? This is because Starbucks does great risk analysis as well as providing great coffee! They collect data like location data, demographic data, customer preferences, traffic levels, etc. of any location they plan to open a shop and only do it if the chances of success are high and the associated risk is minimal. So they can even choose locations that are close together as long as there is more profit and less risk.
4. Companies use Big Data Analytics for Supply Chain Handling
The supply chain begins with the creation of raw materials and ends at the finished products in the hands of the customers. And for large companies, it is very difficult to handle this supply chain. After all, it can contain thousands of people and products that are moving from the point of manufacture to the point of consumption! So companies can use Big Data Analytics to analyze their raw materials, products in their warehouse inventories and their retailer details to understand their production and shipment needs. This will make Supply Chain Handling much easier which will lead to fewer errors and consequently fewer losses for the company.
An example of a company that uses Big Data Analytics for Supply Chain Handling is PepsiCo. While the most popular thing sold by PepsiCo is Pepsi of course, did you know they sell many other things like Mountain Dew, Lays, 7Up, Doritos, etc. all over the world! And it is very difficult to manage the Supply Chain Handling of so many things without using Big Data Analytics. So PepsiCo uses data to calculate the amount and type of products that retailers want without any wastage occurring.
5. Companies use Big Data Analytics for Product Creation
All companies are trying to create products that their customers want. Well, what if companies were able to first understand what their customers want and then create products? They would surely be successful! That’s what Big Data Analytics aims to do for Product Creation. Companies can use data like previous product response, customer feedback forms, competitor product successes, etc. to understand what types of products customers want and then work on that. In this way, companies can create new products as well as improve their previous products according to market demand and become much more successful and popular.
An example of a company that uses Big Data Analytics for Product Creation is Burberry, a British luxury fashion house. They provide luxury with technology! This is done by targeting customers on an individual level to find out the products that they want and focusing on those. Burberry store employees can also see your online purchase history and preferences and recommend matching accessories with your clothes. And this makes a truly personalized product experience which is only possible with Big Data Analytics.