The information explosion that is unfolding as organisations try to make sense of emerging requirements such as social media campaigns on Facebook, along with the imminent roll-out of smart metering, will create vast quantities of data. IT needs to rethink what it means to provide data analytics to support such applications because BI techniques simply fail when applied to massive data sets.
Data has always been a key asset for some companies, but over the last three to five years, it has gone from "important" to "critical." Data, and more important, data analysis, have become a true competitive advantage for a variety of industries and businesses, not just the Facebooks, Amazons, and Googles of the world.
According to a 2014 study by Accenture and General Electric, 84% of the companies surveyed believe that big data analytics could "shift the competitive landscape" for their industry within the next year and 89% believe companies that fail to adopt a big data analytics strategy could lose both market share and momentum.
"The core advantage of data is that it tells you something about the world that you didn't know before. As your competitors learn more, you'll need to learn, too," said Hilary Mason, founder at Fast Forward Labs
The McKinsey Global Institute recently published a report on the opportunities in business and government of using big data.[ Why Digital Governance Matters ] According to McKinsey, the use of big data is becoming a key way for leading companies to outperform their peers. "We estimate that a retailer embracing big data has the potential to increase its operating margin by more than 60%. We have seen leading retailers such as Tesco use big data to capture market share from local competitors, and many other examples abound in industries such as financial services and insurance," the report says.
A study from IBM shows that companies which excel at finance efficiency and have more mature business analytics and optimisation can experience 20 times more profit growth and 30% higher return on invested capital. Companies are relying on data for everything from pricing flexibility to customer preference management to discount targeting. It is clear that today’s executives need to be well versed in Big Data and analytics and how to turn the information into value not only for their organizations but for their customers. In an age when retaining a customer is about seven times less expensive than acquiring a customer, companies need to know exactly what customers need and want and how to provide it quickly and correctly.
Find the graphics mentioned below which can help you understand the crux of what is big data and other important aspects you should know about before reading further.
Big Data Holds The Key To Customer Service.
Providing high quality customer service is vital to keep customers happy. Knowing what they want and need from you is the first step in making your services as top-notch as possible. To fully understand your customer base, you’ll need to conduct in-depth research.
One of the best resources to do this is big data, which is a collection of data sets so large they need nontraditional processing applications to properly analyze. While the size and scope of the data can seem intimidating, your researching results will inform all aspects of your business’s customer service and benefit you in the long run.
By using big data to understand the average reactions of customers to your products and services, you can better understand what clients need from you which will help you gain customer's loyalty. You may realize any of the following are common complaints or actions from customers. These complaints require targeted customer service and changes in policies.
But, many companies still struggle with harnessing Big Data and extracting real value from it. The data sources are growing every day and customers are churning every day, so companies and organizations need to get a handle on their Big Data for customer service.
The Internet of Things (IoT) movement is even pushing data collection beyond people's online activity and point-of-sale transactions into their everyday lives to support data driven decision making. Sensors and wireless communication technology are being embedded into everything from cars and clothes to healthcare devices and household appliances. Companies like sky broadband, can use this data to better understand how customers interact with their products in the real world and then quickly adapt to customer wants and needs.
And big data isn't just for big companies such as Vodafone, Sky or ASOS. "Even smaller companies are putting resources behind their analytics teams, in the same way they put resources behind engineering and product teams".
What exactly do you hope to accomplish?
When it comes to the customer experience, there are many companies that have already come up with a successful program.
First, They know where customer information currently lives and who needs access to it and how it can be shared seamlessly.
Secondly, customer trends are identified. Which touch points are used the most? Which lead to the most purchases? Which have the highest rates of customer satisfaction?
When you know what's working well, than only you can help to establish benchmarks for the services that may be under performing.
1. Predict exactly what customers want before they ask for it
Remember when that shopkeeper had your loaf of bread all wrapped up and ready to go before you even told her that’s what you wanted? Providing that same service for online shoppers based on their past behavior is exactly how companies are using big data to increase customer satisfaction — and increase purchases.
2. Get customers excited about their own data
“Show me the data!” just might be the new “Show me the money!”
With the rise of wearable tech like Apple+ FuelBand, FitBit, customers have access to more data about themselves than ever before. Of course, just giving customers tons of data about themselves is not enough. Companies need to sift through all of the data and extract the most relevant info as an easily digestible experience for customers. But if done right, data that makes a difference for customers’ daily lives — whether it pertains to their health and fitness or to their money — can make a difference on a company’s return on investment.By providing customers data that’s meaningful to them, these companies are using big data to develop superfans.
3. Improve customer service interactions
For many companies, leveraging big data is the hot ticket to more effective marketing and product development. But those who are using data to improve their customer service are taking it one step further. When a customer reaches out to a company's support department, for instance, lets take the case of sky customer support, the representative can more quickly and efficiently solve the problem if they have the right data in front of them. support representative wont be asking as many questions to the customer.
4. Identify customer pain points and solve them
Most companies know what some of their customers’ pain points are (if they don’t, they aren’t paying attention to their customers.) Those who are digging deep into the data to solve those difficulties are improving their customers’ experience.
5. Reduce health care costs and improve treatment
Collecting the right kind of data is critical. "It's not how big the dataset is, but how detailed (or fine-grained) it is,"
In addition to collecting their own data, organizations can also tap into a wide array of public or open datasets. By examining both datasets, they discovered a correlation between nighttime lighting and the economic trends shown in the survey data. They were then able to build a predictive model that used just the lighting information. Although the new satellite-driven model wasn't as accurate as the old hand-collected survey data, it did show overall trends in poverty and (because the data was free) allowed the World Bank to examine these trends on a more regular basis. Businesses must adapt to this democratization of data. "Companies that rely on licensing a proprietary dataset should expect to be outpaced by competitors using modern data collection techniques, and more frequent updates and greater accuracy,"
Is big data expensive?
Big firms will have the big budgets to run big data projects. Technology for IBM's Watson project involved a supercomputer with nearly 15 terabytes of RAM; technology for the SKA does not even exist yet.But big data can be achieved with more affordable IT. Most large enterprises have been running enterprise applications and customer relationship management (CRM) long enough to have aggregated a critical mass of data in those applications.While it may seem that huge scientific projects, winning gameshows, and medical research fit in naturally with big data analytics, there is no reason why smaller organisations and those that are perhaps not at the cutting edge of IT cannot benefit.
I believe there is a huge opportunity in big data for smaller uk companies such as fixithere which provide troubleshooting help to sky customers as well as those of other major UK brands and guide them through right channels to reach their service provider for better ."One of the really interesting things is the ability for smaller businesses to access applications that are available in the cloud, particularly in marketing and e-commerce," Experts agree that big data offers a big opportunity for businesses. The technology appears relatively immature and the idea of a complete big data solution is a bit of a pipedream.
There are products that can handle aspects of big data, like analysis of large data centres, but this is not the complete story - businesses should begin to pilot big data projects to evaluate how to benefit from the additional insight it can potentially offer.
Many companies emphasize great customer service, but just how important is it? In this infographic from kissmetrics, you’ll look at just how much of an impact customer service can have on your business.