It’s officially Q2 of 2023 and that means big data is out, and conversational artificial intelligence (AI) is here to stay. Right?
Well, not exactly. Big data is a tried and true powerhouse for the largest companies in the world. Microsoft and Google still have a long way to go with AI integration (and possible regulation).
It’s more than just a fad that gained popularity in 2012 thanks to the infamous story about how Target “predicted” a young woman was pregnant before her father knew — which has since been debunked.
But that doesn’t undermine Target’s ability to use purchase data to predict pregnancy by identifying women who buy certain supplements or unscented lotions. And Amazon, Uber, and Netflix have also used big data for years to drive product development.
As a startup, you, too, can leverage big data to create personalized experiences, improve product or service offerings, and drive business growth.
So, what are some innovative ways to use big data today?
Let’s dive in.
1. Identify New Market Opportunities
Are you looking to expand your customer base but unsure where to start? Big data can be a game-changer for your startup, helping you identify untapped markets and customer segments.
How? By analyzing consumer behavior and market trends, you can better understand the wants and needs of your target audience and develop products or services that meet those needs.
For example, suppose you run a health supplement line and notice that month-over-month sales have slowed. But when you look at the underlying data, you notice that sales of whey protein powder have dropped off, offset by an uptick in plant-based protein shakes.
On the surface, it looks like your sales have flatlined. But when you analyze data on consumer purchasing habits and trends, you discover a growing market for vegan supplements.
And voila, you just covered a treasure trove of information worth its weight in gold. Now, you can double down on developing new vegan products that cater to a new market segment.
The result? A larger customer base and new revenue opportunities.
And you don’t have to waste time or money testing new markets. You already have the answer handed to you on a silver platter. It’s a win-win.
2. Improve Your Brand Identity
One of the best things about big data is that it allows you to answer previously impossible questions on a global scale, like “how do people feel about my brand”?
Of course, you can always turn to your customer reviews or comments on social media to see what people say. But that’s time-consuming, and you’re better off spending your time elsewhere.
When you wave the magic wand, also known as big data, you get direct insights into how customers feel about your products without scouring the internet manually. But it doesn’t stop there.
You can also learn how the world perceives your brand identity — good, bad, or indifferent.
So depending on what you find, you could improve your image or increase brand loyalty by simply changing a few elements of your brand using platforms like Tailor Brands.
As your business and brand become more established, the risk of rebranding becomes greater. However, a partial rebrand can help you retain the brand loyalty you’ve built over time while refreshing your image to stay relevant in changing times.
For instance, two years ago, Kia unveiled a new logo. People were confused as these newly branded cars slowly crept onto the roadways. And quickly, 30,000 people turned to Google to understand the new “KN” car.
Even Kia had to turn on the PR sirens and cover its tracks by explaining, “the text may be potentially confusing at first glance.” But Kia stands behind the updated logo to appear more modern.
Thankfully for Kia, big data helped alert them of the confusion so they could stop the damage before it wreaked too much havoc.
3. Optimize Pricing Strategies
Getting pricing right for any business model is crucial. It can be the one determining factor between a conversion or a loss to your direct competitor.
Why? Most consumers are price-conscious, especially during times of economic uncertainty.
And that’s one of the largest sales hurdles you’ll encounter as you grow your business and take on a sales role. You need to convince the consumer that your product or service is worth more than its price.
On the other hand, even a small price increase can significantly boost your profits. In fact, research suggests that a mere 1% increase in price can result in an 8.7% increase in operating profits — assuming there’s no loss of volume.
TL;DR: setting the right price is a tricky balancing act between maximizing profits and staying competitive. Fortunately, big data can help you optimize your pricing strategies to make informed pricing decisions.
Are we surprised that the answer lies within your customer data? You have direct insight into how customers perceive the value of your products or services.
For example, customers may be willing to pay more for a certain level of convenience or quality. With this information in your back pocket, you can adjust your prices to reflect the perceived value of your products or services.
Apple does an excellent job with the pricing of new iPads, MacBooks, and AirPods to remain competitive in the tech market while maintaining its luxury appeal. And Uber is most widely known for analyzing data to price rides according to ride demand, boosting profits.
Both strategies leverage big data. And both companies are among the most successful in the world. Why not learn from the best?
4. Boost Sales with Predictive Models
Looping back to the Target example, predictive models are one of the most exciting ways to leverage big data to grow your business.
Why? Because you have the power to predict the future. Cool, huh?
Ok, it’s not foolproof, but by analyzing vast amounts of data, predictive analytics tools like SAS can help identify trends and patterns that aren’t quickly identifiable with the naked eye.
One of the most significant benefits of predictive models is their ability to help boost sales. You can gain insights into consumer preferences and anticipate their future needs.
It’s like knowing the answers to the test before you take it. Now, you can tailor your products or services to meet those needs, increasing sales and customer loyalty.
For example, Amazon’s recommendation system uses predictive models that analyze consumer behavior to make personalized recommendations. These recommendations drive 35% of Amazon’s revenue. That’s not a drop in the bucket.
Netflix uses models to predict what users will want to watch, keeping them engaged. The result? More binge-watching and longer subscription periods. Those two things equal more money in Netflix’s pockets.
By leveraging predictive models, you can better understand your customers and provide them with more personalized experiences. This strategy not only leads to increased sales but also builds stronger relationships with customers.
5. Create Personalized Marketing Campaigns
Speaking of personalization, you can leverage the same data to create personalized marketing campaigns. Say goodbye to wasted ad spend and hello to highly targeted campaigns that convert.
By analyzing customer behavior, such as browsing history, purchase history, and demographic information, you can create segmented campaigns that speak directly to your customers’ needs and interests.
One of the most effective ways to use personalized marketing is by sending the right message at the right time to push customers closer to the purchasing decision.
For example, if a customer was browsing for boots at Saks Fifth Avenue but never pulled the trigger, you can use big data to track their behavior. Then send them a personalized email two weeks later when the boots go on sale.
The customer likely forgot about the boost until the email arrived in their inbox. In fact, studies show that personalized emails had an open rate 26% higher than non-personalized emails and generated 760% more revenue.
Whether through targeted emails, personalized product recommendations, or customized promotions, personalized marketing can help you drive sales and grow your business.
Say goodbye to sleepless nights stressing over a new product launch. Big data should have your bake and help you make confident, data-driven decisions.
By analyzing customer behavior and market trends, you can identify untapped markets, optimize your pricing strategies, create personalized marketing campaigns, and use predictive models to boost sales.
It almost sounds too good to be true. So it’s important to remember that data is just a tool, and it’s up to you to use it effectively to drive your business forward.
Tap into the power of big data to gain a competitive edge, grow your business, and better serve your customers today. You won’t regret it.