It is a form of advanced analytics that involves applications with elements such as statistical algorithms powered by high-performance analytics systems.
Why Companies Use Big Data Analytics
From new revenue opportunities, effective marketing, better customer services, improved operational experience, and competitive advantages over rivals, big data analytics which is driven by analytical software and systems offers benefits to many organizations.
- Analyze Structured Transaction data: Big data allows data scientists, statisticians, and other analytics professionals to analyze the growing volume of structured transaction data such as social media contents, text from customer email, survey responses, web server logs, mobile phone records and machine data captured by sensors connected to the internet of things. Examining these types of data help to uncover hidden patterns and give insight to make better business decisions.
- Boost Customer Acquisition and Retention: In every organization customers are the most important assets; no business can be successful without establishing a solid customer base. The use of big data analytics helps businesses discover customers’ related patterns and trends; this is important because customers’ behaviors can indicate loyalty. With big data analytics in place, a business has the ability to derive critical behavioral insights it needs to retain uts customer base. A typical example of a company that makes use of big data analytics in driving client retention is Coca-Cola which strengthened its data strategy in 2015 by building a digital-led loyalty program.
- Big Data Analytics offers Marketing Insights: In addition, big data analytics helps to change how business operates by matching customer expectation, ensuring that marketing campaigns are powerful, and changing the company's product line. It also provides insight to help organizations create a more targeted and personalized campaign which implies that businesses can save money and enhance efficiency. A typical example of a brand making use of big data analytics for marketing insight is Netflix. With over 100 million subscribers; the company collects data which is the key to achieving the industry status Netflix boasts.
- Ensures Efficient Risk Management: Any business that wants to survive in the present business environment and remain profitable must be able to foresee potential risks and mitigate them before they become critical. Big data analytics helps organizations develop risk management solutions that allow businesses to quantify and model risks they face daily. It also provides the ability to help a business achieve smarter risk mitigation strategies and make better decisions.
- Get a better understanding of their competitors: For every business knowing your competitors is vital to succeeding and growing. Big data algorithms help organizations get a better understanding of their competitors, know recent price changes, make new product changes, and discover the right time to adjust their product prices.
Finally, enterprises are understanding the benefits of making use of big data analytics in simplifying processes. From new revenue opportunities, effective marketing, better customer services, improved operational experience, and competitive advantages over rivals, the implementation of big data analytics can help businesses gain competitive advantages while driving customer retention.