Startup companies are often described as small enterprises that compete with the large players in the economy. As they compete with large corporations for their market share, startups should consider the needed traction big data analytics could create for them. Using big data in today’s technological world is not an option, but a necessity. Big data solutions have become affordable in recent years, and small business can leverage them to gain a competitive advantage in the market. Consider the following major benefits that big data strategies bring to startup companies.
Personalized Customer Engagement
Data analytics allow marketers access to more detailed information about their customers such as who their most valuable clients are, their consumption patterns, and individual needs about a certain product or service. Businesses can now track customers’ digital footprints from the time they gained awareness about a product to their first purchase. This information allows them to focus their resources, marketing efforts, and incentives for individuals who meet the calculated criteria based on the data.
Startups often operate with fewer resources and being able to target the right consumers rather than homogenous groups is financially beneficial for their advertising needs. Similarly, once they identify their valued customers, they can employ personal engagement strategies that will facilitate customer retention.
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Access to Real-Time Data
When an enterprise is in its infancy stage, there’s a need to monitor what people are saying about its products and services, particularly on social media. Negative information on the internet can kill a small business in weeks. Research shows that eight out of ten startups close down within the first 18 months. Big data allows startups to obtain real-time information about what consumers are saying about the company on the internet.
With the use of programs such as Spark streaming, a business can obtain real-time data on people’s comments about the product, whether they are inquiries or reviews, and if the information is negative or positive. Monitor features that are available through big data allow business to respond to negative reviews and consumer complaints promptly. Addressing such time-sensitive matters can go a long way in preserving the firm’s reputation.
Improved Productivity and Sales
As small businesses enter the market, they may have a hard time discerning consumer preferences, why one product does so well in the market, and how users will receive their product. However, big data avails information on consumer likes and dislikes, and this can help the business to tailor its product to the client’s needs. A startup firm can use the data to make informed decisions rather than just go into the market blindly. This can facilitate the employment of effective customer acquisition and retention strategies.
Big data can help a business to streamline and improve its internal operations. For instance, through measuring the internal areas of the enterprise such as finance, labor, and productivity, big data helps to pinpoint areas that need budget cuts or reorganization. This promotes efficiency in management and improves the productivity of the company.
Market Trends and Patterns
Data analytics have made it easy for businesses to monitor market trends and patterns, and how they can influence operations, productivity, sales, and consumer behavior in the short and long-term. In a marketplace where small businesses are facing stiff competition from large corporations and other start-ups, there’s a need to stay up-to-date with prevailing trends. These also include the strategies that are being used by competitors to acquire and retain customers. Big data allows startups to evaluate their strategy and ensure that they are in line with the currents trends and patterns.
As small businesses benefit from big data solutions, they should ensure that the costs of software do not hamper organizational growth. A big data solution should be priced right, be flexible enough to accommodate future changes in the need for analytics, and improve the efficiency of the startup.