Big data isn't only for big companies
Here's a quick quiz for the owners of small businesses. Do you know what big data is? You might have read about big data. You've probably even read that those businesses who study big data use it to forge a more powerful relationship to customers and gain an edge over their competitors. But as a small business owner you're busy. You have to hire three more employees . You have to approve your product's new marketing plan. And you also need to find a new location that will better serve your growing business. This doesn't mean, though, you can ignore big data, and here's why:
Defining Big Data
What is big data? John Weathington, writing for Tech Republic blog, does a good job explaining: Big data, as the name suggests, are massive quantities of fast-moving information. This information is free, but it serves a very important purpose in the marketplace. Big data, if effectively mined and studied, will tell you what your target customers want, what they lack and just how much they will be prepared to pay to get it. In other words, big data can tell you the best way to run your small business.
Big Data In Action
Knowing the meaning is one thing, actually using big data to draw in new customers is another. Fortunately, CIO Magazine recently took a quick look at three companies that market themselves in part by highlighting their ability to use big data to help their clients make smarter choices. Consider Financial Engines. This financial firm, as CIO writes, utilizes large financial data sets and advanced analytical tools to help customers successfully plan their retirements. Because the company has access to retirement statistics, trends and data, it has little trouble grabbing new clients.
Exmobaby uses big data differently: Its pajamas incorporate built-in sensors that compile health information on the babies wearing them. The sensors then compile this health-and-wellness data so that parents can access it. The marketing advantage is obvious: Exmobaby can take large amounts of data and then use it to show concerned parents how healthy their babies are. Parchment relies on big data to help students apply for the appropriate colleges. The company relies on a database of grade point averages, SAT scores and college acceptance data to guide students toward those colleges likely to accept them. The CIO Magazine story proves that big data is not an esoteric matter. It's real information that will help the owners of small businesses gain new business.