There’s a lot of big talk lately about big data. But for those who aren’t up-to-speed on marketing and data collection lingo, big data is a confusing term to understand. The following takes a look at the big deal with big data, how it’s defined, and applications of big data in business.
What is big data?
Known by many different definitions, there is perhaps no one way to precisely describe what big data specifically is. That’s because big data is exactly that: big. It doesn’t rely on one set of information, but instead is a comprehensive collection of data from a variety of sources. With this understanding in mind, it could be reasonably said that big data is defined as a collection of data from both traditional and non-traditional sources that is used to help businesses make gains (whatever those gains may be).
Types of Data in Big Data
Okay, so if big data is a collection of information from both traditional and non-traditional sources, what sources are we actually talking about? Traditional data that’s used to comprise “big data” typically includes:
- Business financial records;
- Transaction history;
- Data from interaction channels (call center data, for example).
But in addition to traditional data—like profit margins—there’s a lot of non-traditional data that’s used to form big data, too. For example, non-traditional data may include:
- Social media posts;
- Online advertisements;
- Web log data.
Usually, the three ‘V’s are used to talk about big data. These are volume (amount), velocity (speed of which data is received/recorded), and variety (types of data). Each business’s three ‘V’s are entirely unique, and can be used to increase profits and enhance customer experience.
The Benefits of Big Data
Traditional data has long been revered as important in the business world. But with a large shift to digital and online efforts, big data has replaced traditional data as a must-have tool. Today, businesses can use big data to make educated decisions about where and how to invest in marketing, to discover exactly what it is customers want and how to approach prospective customers, and even to gather information about competitors’ pricing and marketing strategies. Collectively, these things can then be used to create a more effective business approach, in turn driving profits.
Collecting Big Data
While many companies may recognize the value of big data, collecting and applying big data can be difficult, especially with limited resources. As such, many businesses turn to big data support services. These services can help business to:
- Develop or enhance effective marketing campaigns;
- Analyze pricing options;
- Calculate risk;
- Understand and enhance ROI;
- Discover causes of failure;
- Streamline sales; and
- Improve customer relations.
Big Data Means Big Things
Collecting and utilizing big data is an important strategy for gaining a competitive advantage, and can help business to find growth opportunities and outperform contenders. If your business isn’t already using big data, the time to learn more is now.