When business leaders think about big data, machine learning applications typically come to mind. You feed cognitive systems a bunch of statistics, and then they learn how to do amazing things, like translate languages and play the Asian board game, Go.
But companies also need to take note. Big data isn’t just about random, technical, and academic applications. It’s also vital for gaining competitiveness and winning clients.
A whole industry has grown up around this concept. PacGenesis, for instance, says that companies are demanding solutions that allow them to transfer their data from one site to another securely. And big players like Cisco see continued demand for their services. Data could become as ubiquitous as “marketing” or “finance” within just a few years.
Here are some of the ways you can use big data to drive revenues at your firm.
Improving Product Recommendations
If you sell a lot of products, it can be a challenge for consumers to figure out which suits them the best. Ecommerce stores, therefore, now regularly recommend products to users, based on big data and past buying habits. These systems are almost entirely third party, so you can insert them into your existing business models with relatively little fuss. Once consumers have products they can use in front of them, they’re in a better position to make effective decisions that benefit their lives.
Detecting Hidden Pain Points
Businesses are very good at managing overt pain paints, but dealing with the hidden ones is challenging. They’re almost impossible to find.
Companies, therefore, are turning to big data to try to figure out where they’re hemorrhaging customers in their sales pipeline. They’re mainly tracking cursor movements and trying to figure out how to drive more traffic to particular areas of their sites. They’re also using the information on dwell time and clicks to try to figure out which content users find easy to digest, and which they don’t.
Once you’ve identified pain points, you’re in a position to do something about them. Companies that can eliminate issues put themselves at a considerable advantage. Website conversions can rise dramatically, more than offsetting the cost of the research.
Better Split Testing
Split testing is a technique for comparing two marketing strategies side by side. A company, for instance, might want to see which ad has the best copy: A or B. They will, then show both to users in search results, and see which gets the most clicks and conversions (the two might not be the same).
Split testing is also useful for a bunch of other applications. For instance, you can split test two different marketing emails to see which headline grabs attention the best.
Split testing makes a big difference because it allows you to refine your approach slowly over time. There’s no limit to the number of experiments you can carry out.
Big data, therefore, is a tool you can use for nearly limitless growth. Please don’t hesitate to use it as much as you possibly can.