Techblog
How can small businesses grow with big data
Big data is not just for big businesses. In fact, SMEs can benefit from big data – and it does not require a massive increase in resources or a big budget.
With big data, businesses have access to information and data that run across their entire business. Data that provides useful information allows business leaders to make important, optimal decisions that can help improve business operations and efficiency.
However, many SMEs lack awareness and the expertise to properly utilising the power of big data. On October 3 2017, Singapore’s Minister for Communications and Information, Dr Yaacob Ibrahim, said that many local companies are not yet tapping the potential of big data or other new technologies, and steps must be taken to help them overcome barriers to adoption.
He added that a study conducted by the Committee on the Future Economy showed that about a third of business had not adopted data analytics. Additionally, 80% have not harnessed the potential of artificial intelligence. This is unfortunate because “data science and artificial intelligence (AI) technologies can help companies use raw data to make better decision. However, they are not taking advantage of this potential.
“Many of these businesses said that they lacked awareness and expertise to harness data science and AI, or were concerned about breaching data protection regulations,” added Dr Yaacob.
What is big data?
A lot has been said about big data, but what exactly is it?
In a nutshell, it is the process of examining large data sets from various sources. This is mainly to uncover “hidden patterns, unknown correlations, market trends and customer preferences” according to Search Business Analytics. Such patterns, when uncovered, can help organisations make better, more informed business decisions.
For example, you can turn transaction data into opportunities that will help the business. Transaction data can help business owners better understand who their customers are as well as identify their returning customers. With this data they can offer deals they know will resonate with both new and returning customers.
While hiring data science experts to take advantage of this technology is preferable, they are expensive. SMEs may not be willing – or able - to splash out on a big data expert.
However, business owners can also glean data from simple sources like Google Analytics. With Google Analytics, which is free, SME owners are provided a great insight into web traffic, visitor behaviour and levels of audience engagement. These data then enable businesses to assess their operations and efficiency as well as adjust their digital marketing accordingly.
By looking at where the traffic is coming from and the bounce rates (how long visitors stay on a website), you can:
- Make better decisions on how to modify your website to increase more sales.
- You can analyse the data on social media traffic and adjust your social media campaigns according to what is or isn’t working.
- By looking at the traffic from mobile sources, you will know how effective your mobile-optimised site is.
With the data gleaned from Google Analytics that enables businesses to see how to target different groups of customers, SME leaders and marketers can differentiate their marketing campaigns.
With the data collected from analytics:
- Campaigns can customise their EDM campaigns more effectively and carry out a more data-driven campaign.
- SMEs can distribute personalised, targeted information to a group of potential customers.
- Track the data from EDM campaigns by monitoring the number of click rates and open rates.
- Target the same group of people using other channels, such as social media.
Big data tools
While extracting big data is often expensive and resource-intensive, there are various Software-as-a-Service (SaaS) tools that SMEs can utilise to extract big data that will be useful for their marketing campaigns and operations.
IBM’s Watson Analytics is a big data solution that makes predictive business analytics and intelligence accessible to small businesses. SMEs will find this software easy to use because the process is automated. The platform features tools which help prepare and present the data in a simple way so that business owners can easily analyse the data reports and make decisions.
Additionally, the data analysis is all available on one platform and it can be used to make decisions on sales, operations, marketing, finance, and human resources. IBM’s Watson Analytics also as an AI function that allows the software to help businesses identify problems as well as recognise patterns. This can guide businesses into making important decisions.
2. Kissmetrics
Kissmetrics, which is known for its popular intelligence and web analytics platform, also helps small businesses optimise their digital marketing by identifying its best customers and increasing conversions. Crucially, Kissmetrics uses data to build up a profile of customers that visit a company’s various online channels. It then gives insights into these customers and their habits, and helps businesses gain more information that can be used for optimal business segmentation as well as more targeted marketing campaigns. The service also offers businesses the ability to change its design with the purpose of increasing sales.
Summary
- Big data is important to small businesses too although it is often overlooked by SMEs.
- Big data helps businesses make more optimal decisions that help improve efficiency and increase sales
- Patterns and correlations can be uncovered with the use of big data
- Google analytics can be a crucial starter tool for SMEs interested in using data to improve their business
- Tools like IBM Watson Analytics and Kissmetrics help prepare data insights in a way that guide leaders’ decision-making process.