One of the inevitabilities in doing business today is dealing with the impact of big data. Data and data generation are two of the main drivers in business operations today.
A Northwestern University study predicted that given the data generation rate per day of 2.5 exabytes, there will be close to 44 zettabytes of data by 2020 (one zettabyte = 44 trillion gigabytes).
Big data is here to stay, and eventually it won’t be “big” anymore, and we’ll start to refer to it as just “data.”
What is big data, anyway?
The name is a dead giveaway. Oracle defines big data as “larger, more complex data sets, especially from new data sources. These data sets are so voluminous that traditional data processing software just can’t manage them.” Oracle goes on to describe big data with three “V”s — volume, velocity and variety.
Volume simply refers to the very large amount of data. Usually this starts off as unstructured data. This means statistics like the number of website clicks, Twitter data feeds, or access from mobile devices. The volume of data different industries and companies deals with varies. But one thing is constant — the amount is always massive.
Velocity, on the other hand, refers to the speed the data is received. Big data is made possible by how quick the information can be gathered. As time passes, technology becomes more and more capable of collective massive amounts of data very, very fast.
Finally, variety is all about the different kinds of data collected. Big data is comprised of many things, and isn’t limited to one kind of information. The global nature of business today especially enables even more variety in the kind of information that goes into big data.
How is big data useful for Customer Experience?
The simple answer to that is “for so many reasons.” The sheer volume of information that comprises big data can be applied and utilized in so many ways.
Here are just a few ways Big Data can be used to improve Customer Experiences:
1. Better predictive analysis
Bigger data sets allows for more insight (and even foresight, in some cases) into markets and customers, allowing companies to have a distinct edge over the competition.
It enables organizations to tap into new opportunities and gain larger and bigger market footprints. It also makes it possible for companies to detect trends and improve business intelligence and strategy.
2. Deeper insight into customers’ needs
Big data helps companies better understand what customers want. When dealing with large data sets it becomes possible to identify behavior clusters. These clusters can then be associated to customer demographics or sociographics, giving companies the power to act premptively on customers’ individual needs.
3. Better data privacy
Big data is also good for security, especially in this highly digital world. Fraudulent activities can be detected faster, and culprits caught sooner. And that’s beside the ability to significantly prevent fraud from happening in the first place.
4. Reduces effort
Businesses are also made much more efficient by big data. The applications are endless — finance, operations, sales, marketing and more.
All these can be made more efficient and effective by big data. For example, businesses can analyze different kinds of operations in the world and from that develop a better workflow for employees and staff.
Big data is the future
Big data is poised to change the way business go about what they do. While the benefits are more obvious for bigger organizations, big data also enables smaller companies to become more competitive. The rate with which big data is being collected and made more accessible will allow all sorts of business to benefit from it.
This means more seamless implementation of solutions, products and initiatives based on big data, creating a win-win scenario for both business and customers today and in the future.
Meet the Worthix Content Team. We’re dedicated to bringing our readers value from the crossroads of CX thought leaders, industry experts, on-the-ground CX practitioners and top academics from around the world.