The biggest and most successful companies in the world utilize big data to improve their processes, increase productivity, and boost profit.
Every day, people generate troves of data through the use of digital services. By simply browsing social media, reading news articles, clicking links, playing games, and shopping on e-commerce platforms, users create information that helps businesses refine their services to better cater to the needs of the public.
Most businesses are aware of how data can aid in achieving growth. A previous survey found that 99 percent of all businesses plan to, at some point, implement big data analytics as well as artificial intelligence.
However, only a small percentage (30 percent as of 2019) have successfully implemented big data analytics. Not all businesses have the technological capacity to do the same. Most of those that are reaping the benefits of big data analytics are big corporations that have the budget to upgrade.
But, using data analytics is the tool that can enable small businesses to compete with big corporations like Amazon. SMEs can harness big data analytics solutions by transitioning to an integrated digital platform that offers numerous digital services.
Entrepreneurs are in charge of making major decisions that will have an impact on the business now and in the future. One wrong move can destroy the reputation of the business or prohibit its growth. Its impacts will be felt for a really long time.
However, big data can make the job of the entrepreneur easier. Humans are intelligent but fallible. At some point, they will make a mistake. Through the help of big data, there is no need to predict the future because it can more accurately identify trends and see where it is headed. Analyzing big data reveals so much about the public’s wants and needs, their priorities and fears, and their spending behaviors. This allows organizations to make decisions faster and with better results.
Better Customer Satisfaction
Many businesses already utilize chatbots to improve customer service. The technology enables businesses to be online 24/7, ready to respond to inquiries and concerns in an instant. Even in the middle of the night, way past office hours, customers can send a message and receive a response.
The technology has already reduced the workload of human customer service representatives. They no longer have to answer frequently asked questions; the chatbot already does that for them. They can focus on more complex demands that require a sophisticated understanding of the human brain. The use of chatbots has led to time and money savings as well as improved customer satisfaction and retention.
However, big data can also create a guide that can help produce features that solve problems before customers encounter them. You can also identify and eliminate features that only discourage customers from completing a transaction.
Better Understanding of Customer Behaviors and Trends
Entrepreneurs need to monitor trends to identify what consumers want. This allows them to tailor their marketing strategies as well as develop new products and services that are presently in demand.
Moreover, it identifies what consumers need based on future purchases. An e-commerce platform can, therefore, use artificial intelligence to make recommendations for special offers or similar products.
Better Human Resource Management
The integration of big data analytics can make the human resource department’s job a lot easier. This area typically requires a well-trained human, especially in choosing which job applicant to hire for a position. However, a lot of their work is also repetitive. They, for example, have to review dozens, if not hundreds, of resumes, read cover letters, send emails, make calls, and more. They have to look for those who have the qualifications that they need in the organization.
The conventional matching of keywords to qualifications no longer works, especially in the tech industry where more and more companies are choosing to hire based on capabilities and not on educational background. Plenty of things need to be considered to hire the right candidate.
AI can evaluate resumes and find the right fit by analyzing skills, prior jobs experience, certifications, and other parameters. The technology can also perform background checks and social media activities of applicants to rule out job applicants whose values do not match those of the organization.
The use of big data analytics is good for business because it leads to overall better results. Competitors already know this, and they are taking advantage of consumer data to improve their products and services. SMEs should upgrade, too, to better compete with big corporations.