Small Businesses Need Big Data Too
Contrary to popular belief, big data isn’t just for multinationals.
Yet, some small organizations don’t even know what this buzzword means; let alone how it can help their business.
So what exactly is Big Data?
According to SAS, a software solutions firm, information becomes big data when, “volume, velocity and variety of data exceed an organization's storage or computer capacity for accurate and timely decision making.”
Even small firms who understand big data often overlook it. For them, the cost and complexity of handling huge amounts of digital information is simply too much to bear.
But help is at hand. Whether your turnover is $100,000 or $100 billion, you can now outsource your big data projects to dedicated data analytics firms.
The Dangers of Ignoring Big Data
Small firms ignore big data at their own peril.
Traditionally, their unique selling point was a personalized product and sterling customer service. However, large corporates are fast closing the gap on these fronts.
The advent of new technology such as cloud computing and social media means that large corporates can now deliver tailored services to customers, respond in real time and predict problems before they occur.
So, all of this means that small businesses need an even deeper understanding of their customers to stay competitive.
In other words, the local bakery can no longer rely on a freshly baked croissant and a smile to keep Bill coming back. The chain down the road has texted him an offer for a free pain au chocolat on his birthday – a deal which may just tempt him away for good.
Outsourcing Data Analytics
It’s no secret that employing data scientists on a full-time basis is expensive, creating a barrier for many small businesses.
Luckily, we live in a world where outsourcing is easy, meaning firms can “rent labour” for a fraction of the cost of bringing them in-house.
Take Kaggle. This online job board allows you to post data projects using a standardized template which captures information on your: industry, type (public or private), participation level (individual or team), financial reward, and deadline.
What to do if your Company is Data-less
Renting data scientists is futile unless you have a rich data set to play with. And not all small companies do.
Yet, an empty data bank is not an insurmountable obstacle. Increasingly, businesses are taking on the role of mining, organizing and synthesizing big data for other businesses.
Axciom, for example, provides companies with extremely valuable data on individual consumers. Believe it or not, for a small fee, Axciom can provide your company with a database of people who are experiencing “life-event triggers” such as buying a home or getting married. Just imagine the possibilities for home furnishers and wedding planners…
Terapeak, by contrast, caters to businesses who sell their products on eBay and Amazon. It’s an eBay research tool that amalgamates real-time pricing and product information, to allow its users to gauge how tweaking price will impact sales.
The Low-Hanging Fruit
When it comes to big data, knowing where to start can seem daunting. To build your confidence, start with a few quick wins.
For example, if you have a website, Google Analytics is a godsend. You can use this tool to discover information about who’s visiting your website, what pages they’re visiting, how long they’re staying, and the keywords they used to arrive there. The insights gleaned from these figures can help you increase traffic to your website.
And, if you struggle to get to grips with Google’s suite of tools, you can always employ a local internet marketing firm. Your best bet are firms that are Google Partners, such as RankHigher.ca, which can give you expert advice on your Google suite.
[H2] Thinking Outside the Box
Some companies are getting really creative with the way they use publically available information.
Take roofing contractors. This age-old industry is generally not associated with cutting-edge technology. But they have come up with an ingenious way to use Google Earth.
For roofers, providing an estimate is a tedious process. It typically involves driving long-distances, often only to discover that they don’t have the manpower or appropriate tools to repair a particular roof. Time and money has been wasted.
Through creative thinking, roofers have made this risk obsolete. A quick scan of Google Earth gives them a perfect bird’s eye view of a property, allowing them to take a decision in a split second.
So – get your thinking cap on. Your small business could be transformed with a little dash of data and an analytical wizard.
