Big data has been a tremendous tool for businesses around the globe. It has offered so many benefits to businesses and has allowed them to do things that were only dreamed of before. That being said, not every business owner understands or utilizes the power of big data in their own business. If you are business owner who needs a little convincing about the benefits of big data for business, then read on. Below is a list of 3 ways that big data can increase your business’ revenues in sales.
Integration and Simplification
This important fact comes from Glenn Gow’s article in CMS Wire. As Gow explains, so often businesses already have much of the information that they need to be even more successful. What businesses lack, however, is the ability to integrate and simply the information that they already have.
Thus, instead of looking for some complicated, new marketing strategy, consider integrating and simplifying the data your company already has. Software can help you to do this quite well. As Gow explains, big data systems use mathematical formulas to navigate through all your company’s information. With this ability, your business will be able to systematize information that may be able to help better predict your sales, which can help increase your revenue from them.
This important piece of information comes from Walter Baker, Dieter Kiewell and Georg Winkler’s article in Mckinsey. The idea here is that getting the price right for your products is extremely important to the success of your business. That being said, most businesses are not entirely successful when determining the price for their products. The authors estimated that up to 30% of decisions that businesses make every year concerning pricing are actually not the best price point for their products or services. That means that on average almost a 1/3 of your business’ decisions of pricing could have been optimized. In other words, you may be losing out on quite a bit of money because of this.
Thankfully, big data can help you. With big data’s ability to analyze and systematize your company’s information, you may be able to better price your products and services to maximize your revenue.
This tip comes from James Bennett’s article in CMO. This is a very useful feature of big data and can help your business increase your sales. Gathering behavior data can be a great way for you to understand your customers better. One way gathering this type of data works is by looking at what your customers’ buying habits are. By looking at what type of products a certain customer prefers, you can begin to tailor their experiences more.
Another way this type of data can be gathered is by looking at what customers or potential customers looked at on your website. As Bennett explains, even if someone’s search did not end up in a sale, knowing what people are drawn to on your website can be valuable. Knowing this can potentially lead to an increase in sales and revenue as well. For example, an insurance company could learn more about its customers by gathering this type of data. They could offer free insurance quotes on their website and track how many people used this service, and if it led to other purchases on their website. This is only one example of how this type of data gathering by big data can be used to increase revenue.
Trying to sift through enormous amounts of information that your customers leave you can be daunting and near impossible on your own. In addition to this, your business’ sales may in fact be hurting because of the lack of integration and useful information that is available to you. Thankfully, big data can help. Big data can integrate and simply your business’ information, help you set a better price for your products and services as well as collect important behavior data that can help you tailor your customers’ experiences on your website. These are some of the ways big data can help increase your revenue in sales.
by: Mark Palmer