One of the most prominent buzz words in business these days is ‘big data’. This refers to the collection and analysis of large data sets by advanced machines using data processing software. Data are an invaluable tool for understanding trends and tendencies, and in the business world, analyzing massive amounts of customer data can give your business a competitive advantage. While basic data analysis can be performed using consumer-grade software, advanced analysis that yields meaningful results will require the use of powerful data processing software.
Benefits for Big Businesses
Large consumer goods companies use data analytics to uncover consumer behavior that would otherwise be impossible to identify. With a larger budget, these big companies can invest resources into collecting big data and hire experts to perform the analysis.
For example, a retailer may use advanced technology such as facial recognition software to determine who entered their store, which products they viewed, how much time they spent shopping, and how much their basket amounted to. All these data can then be collected and analyzed with robust data processing software and used to make improvements on product offerings, pricing, and in-store experience, etc.
Options for Small Businesses
Despite the benefits of advanced analytics, the reality is that creating proprietary data processing software can be an expensive undertaking. Many small businesses who would benefit from better understanding their customers are often unable to direct resources towards data. Fortunately, many third-party services can help with data collection, storage, and analysis.
One standout benefit of using a third-party is the comfort in knowing that analysis comes from experienced professionals. Often data are interpreted incorrectly, and faulty conclusions are drawn based on statistical anomalies. Having both the tools and the means to use the tools makes using a third-party service advantageous.