There is hardly a business in the present time that does not make use of big data analytics. By the end of 2018, more than 80% of the businesses planned to make use of big data analytics. The reason was simple. Given the limitation of the market to handle thousands of companies, it was natural for businesses to reach a state of stagnancy. To come out of this stagnant state, companies decided to harness the power of data and impart big data analytics training to their employees. This reskilling of employees gave the companies a large number of benefits.
It increased the depth of the market as companies could now reach the end customer and understand his needs and requirements. This also allowed them to keep their processes, products, and strategies as per customer requirements. In this way, big data analytics ended the cycle of stagnancy and even made room for new entrants.
Big data analytics in action
With the help of big data analytics, companies were able to decipher the shopping habits of a group of customers. Consequently, different groups of customers could be formed based on their likeness to a specific product and they could be targeted with related products. In this way, big data analytics allowed brand positioning as well as customer targeting. In addition to this, big data analytics also proved to be a boon for new entrants. For instance, new startups started to appear in the domain of the transportation industry just by utilizing the power of big data.
The case study of Uber
Let us understand this by the case study of Uber which made its mark by processing customer data. Uber provided a dedicated application platform to users as well as cab drivers. In simple terms, it acted as a link between cab drivers and users. With the help of a powerful recommendation system and big data analytics, Uber was able to bridge the gap between customers and drivers by providing a digital interface. Even without having physical infrastructure and a car fleet of its own, Uber rose to prominence in a short span of time.
Google and big data analytics
It is an open fact that Google works on the basis of the data of millions of customers that it collects online. This is done with the help of its various products like Google Chrome, Google Analytics, and the like. Data is not only a critical raw material for Google but is also the basis for its search engine recommendations. When we type something on the browser, we are actually feeding the system with important information that allows Google to decipher our liking, our way of thinking, and other important things.
As Google keeps a track of these searches and queries, it becomes the basis for improving the working of its algorithms. With the help of advanced algorithms, Google is not only able to correct spellings but also make sense of the search question that it needs to answer. That said, the question that looms large is the ability and mode through which Google is able to simultaneously process the data of millions of users worldwide. This is where big data analytics comes into action. Big data analytics allows Google to keep a track of historic records and even suggest autocomplete options to the users.
Marketing strategies and analytics
Firms like 3Q Digital and Amazon are largely dependent upon customer analytics for giving a perfect direction to their marketing strategies. By collecting customer data in the form of customer transactions and browsing history, the marketing teams get the desired information that they can utilize and pass on to the decision support teams. Moreover, data is also collected from diverse sources like social media, product search, emails, etc. so that the right genre of products reaches the right customers.
Demographics and previous purchases also allow these firms to provide a self-serving platform to users that cater to their specific requirements. This may include the viewing of information related to specific products in a chosen language. It needs to be noted at this point in time that customer data is processed only with the prior consent of customers. This not only allows companies and clients to maintain high standards of data security and privacy but also allows them to align with the prevalent set of rules and regulations in the operating market or country.
We conclude that big data analytics is an important lifeline for businesses, firms, and startups that want to mold their marketing strategies in the right direction.