Importance of Using Big Data to Define Your Business Goals

Importance of Using Big Data to Define Your Business Goals

In the modern day, we use data everywhere, for everything. From sports to security to entertainment, data makes everyone's lives a little bit easier. Businesses, especially retailers, have latched onto data with excitement, using information for every aspect of the decision-making process.

In the Internet of Things, or IoT, data is readily available and ready for use by those who know how to organize and read the information. Data gets used so promptly, there's a value to basic consumer information now. A business not using the information to their best abilities is likely to fall behind competitors quickly. Here are just a few ways data can transform a business.

Pricing Strategies

You want your product to be cheap enough to sell while also turning as much of a profit as possible. There are many factors to take into account, not the least of which is supply and demand. Competition selling similar products, name brands and advertising campaigns can all affect pricing. The best way to price a product with so much fluctuating information is to organize with data.

Predictive data analytics, or information predicting the future sales of a product, allows people to compare different pricing strategies. By combining data from past sales, trends, seasons, competitors, audience and other factors, it's possible to discover an accurate price range. You can even find out what specific individuals would be willing to spend on your product.

Customer Service

Businesses can rise or fall based on consumer whims. Having a customer-centric mindset, meaning to always put the consumer first throughout your decision-making, can have a massive impact on your business. However, you must know what the consumer wants first. Discovering consumer wants and needs in advance is a specialty of data.

Your team can categorize information to create an image of the average consumer and use the data to fill in any gaps left behind. Discovering who the customers are can help when they're in need. Data can help with customer problems, sales, points of contact and other ways to make the customer experience flawless and pleasant.

Product Planning

Product planning covers everything from deciding which products to make and how much to put in inventory. Choosing the wrong products by not factoring in future consumer demands can lead to the loss of a lot of money. Even selecting the right products but not selling them correctly can be devastating.

Having too many or too few of a currently selling product can be a significant loss for expenses. Indirect spending is a problem many companies have and are trying to rectify with the help of data. By using data to manage rent, office supplies, insurance and other small transactions, companies can reduce overall expenses by 25 percent without even touching the main parts of the business.

Better Advertising

Consumers are shopping more online these days, which is precisely where most data comes from. By keeping track of who views what product and when, companies can maximize on advertisements. Offering an ad to someone who happened to be looking for the same product can cut down on ad clutter for the consumer and also has a high chance of netting the business a sale.

Advertising comes in more forms than just online marketing, though, but not all of them may be effective. If you're unsure where you're spending too much in ads, data can help. Data can track where recent shoppers viewed virtual or physical ads and tell the business which ones are most and least effective.

Delivery and Suppliers

Some businesses, especially those with perishable goods, highly depend on delivery vehicles to get to their destination in an appropriate amount of time. Modern technology allows companies to track everything from the place of creation to the market. Data can also judge the average speeds of delivery, how long products can travel without spoiling and which suppliers achieve your goals the best.

Data can also make the trip safer. Now, you and your team can gather information on traffic conditions, local construction, weather or other factors which could affect travel safety, distance and time. Almost every business relies on suppliers as a critical factor, so making sure they can get your products to consumers is essential for business.

Big Data and Business

Data wasn't always a significant part of doing business, but the extra information has certainly changed the game forever. Now, the only way to get even or, hopefully, ahead of the competition is to use data as much as possible. Even when data seems useless in certain areas, information may still come in handy. Advertising, delivery and pricing are just a few of the ways data can be useful. As long as your business remains creative with new ideas, you can still get ahead.

About the Author- 
Nathan Sykes enjoys writing about how the latest technologies can improve business. To read his latest articles, check out his blog, Finding an Outlet.