Because the benefits of Big Data are numerous, businesses are quickly embracing Big Data technology to reap the benefits of Big Data. Statista predicts that the worldwide big data market will reach $103 billion by 2027, with the software industry commanding a 45% share. The global Big Data and Business Analytics market was worth $169 billion in 2018, but it is expected to grow to $274 billion by 2022. In 2018, over 45% of market research experts embraced big data analytics as a research tool.

Businesses of all sizes and industries can benefit from efficient big data use. Among the advantages of big data and analytics are better decision-making, larger inventions, and product price optimization. Let’s take a closer look at the major benefits:

Big Data can help create pioneering breakthroughs for organizations that know how to use it correctly. Big Data solutions and Big Data Analytics can not only foster data-driven decision making, but they also empower your workforce in ways that add value to your business.

The benefits of Big Data Analytics and tools are – 

• Data accumulation from multiple sources, including the Internet, social media platforms, online shopping sites, company databases, external third-party sources, etc.
• Real-time forecasting and monitoring of business as well as the market. 
• Identify crucial points hidden within large datasets to influence business decisions. 
• Promptly mitigate risks by optimizing complex decisions for unforeseen events and potential threats.
• Identify issues in systems and business processes in real-time. 
• Unlock the true potential of data-driven marketing. 
• Dig in customer data to create tailor-made products, services, offers, discounts, etc.
• Facilitate speedy delivery of products/services that meet and exceed client expectations.
• Diversify revenue streams to boost company profits and ROI.  
• Respond to customer requests, grievances, and queries in real-time.
• Foster innovation of new business strategies, products, and services.

Customer Acquisition and Retention

The digital footprints of customers reveal a lot about their preferences, needs, purchase behavior, etc. Businesses use big data to observe consumer patterns and then tailor their products and services according to specific customer needs. This goes a long way to ensure customer satisfaction, loyalty, and ultimately a considerable boost in sales.   

Amazon has utilized this big data benefit by offering the ultimate personalized shopping experience, wherein suggestions pop up based on previous purchases as well as products that other customers have bought, browsing patterns, and other factors.  

Cost optimization

One of the most significant benefits of Big Data tools like Hadoop and Spark is that these offer cost advantages to businesses when it comes to storing, processing, and analyzing large amounts of data. Not just that, Big Data tools can also identify efficient and cost-savvy ways of doing business.

The logistics industry presents an excellent example to highlight the cost-reduction benefit of Big Data. Usually, the cost of product returns is 1.5 times greater that of actual shipping costs. Big Data Analytics allows companies to minimize product return costs by predicting the likelihood of product returns. They can estimate which products are most likely to be returned, thereby allowing companies to take suitable measures to reduce losses on returns. 

Improve efficiency

Big Data tools can improve operational efficiency by leaps and bounds. By interacting with customers/clients and gaining their valuable feedback, Big Data tools can amass large amounts of useful customer data. This data can then be analyzed and interpreted to extract meaningful patterns hidden within (customer taste and preferences, pain points, buying behavior, etc.), which allows companies to create personalized products/services. 

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Big Data Analytics can identify and analyze the latest market trends, allowing you to keep pace with your competitors in the market. Another benefit of Big Data tools is that they can automate routine processes and tasks. This frees up the valuable time of human employees, which they can devote to tasks that require cognitive skills.  

Foster competitive pricing

Big Data Analytics facilitates real-time monitoring of the market and your competitors. You can not only keep track of the past actions of your competitors but also see what strategies they are adopting now. Big Data Analytics offers real-time insights that allow you to – 

• Calculate and measure the impact of price changes.
• Implement competitive positioning for maximizing company profits. 
• Evaluate finances to get a clearer idea of the financial position of your business.
• Implement pricing strategies based on local customer demands, customer purchasing behavior, and competitive market patterns.
• Automate the pricing process of your business to maintain price consistency and eliminate manual errors. 

Boost sales and retain customer loyalty

Big Data aims to gather and analyze vast volumes of customer data. The digital footprints that customers leave behind reveal a great deal about their preferences, needs, buying behavior, and much more. This customer data offers the scope to design tailor-made products and services to cater to the specific needs of individual customer segments. The higher the personalization quotient of a business, the more it will attract customers. Naturally, this will boost sales considerably. 

Personalization and the quality of products/services also have a positive impact on customer loyalty. If you offer quality products at competitive prices along with personalized features/discounts, customers will keep coming back to you time and again. 

Innovate 

 Big Data Analytics and tools can dig into vast datasets to extract valuable insights, which can be transformed into actionable business strategies and decisions. These insights are the key to innovation. 

The insights you gain can be used to tweak business strategies, develop new products/services (that can address specific problems of customers), improve marketing techniques, optimize customer service, improve employee productivity, and find radical ways to expand brand outreach. 

Focus on the local environment

This is particularly relevant for small businesses that cater to the local market and its customers. Even if your business functions within a constrained setting, it is essential to understand your competitors, what they are offering, and the customers.  

 Big Data tools can scan and analyze the local market and offer insights that allow you to see the local trends associated with sellers and customers. Consequently, you can leverage such insights to gain a competitive edge in the local market by delivering highly personalized products/services within your niche, local environment. 

Big Data has developed as a highly effective tool for businesses of all sizes and industries. The most significant benefit of Big Data is that it provides organizations with new opportunities. Among the many, many benefits of Big Data are increased operational efficiency, increased customer happiness, a push for innovation, and profit maximization. Despite the demonstrated benefits of Big Data, there are numerous untapped potentials that remain to be explored.