Planning is important for any business, especially startups. The uncertainty of a startup’s trajectory makes preparation for navigating choppy waters essential. During the founding and planning phase, some startups make the mistake of not implementing big data in their business plan. In reality, big data can have a huge impact on a startup’s success.
Big data can act as a catalyst for the success of startups, with big data built on valuable insights into consumer and market behavior leading to more effective decision-making. Big data is relevant to a variety of areas including inventory management, customer service, advertising, marketing, and general operations. Advertising and marketing in particular can be a costly endeavor for startups that can get more bang for their buck by including big data in the process.
Five reasons why startups can’t afford to ignore big data are:
1. Drivers for strategic growth
Even if a startup has a fantastic product or service, the resources required to develop that product will be wasted if the startup doesn’t find the optimal target market to get involved with. Big data plays a huge role in identifying and predicting behavior in a given market. Startups can use big data, which provides a comprehensive overview of specific markets and analyzes whether it is worth investing marketing resources in the market.
Big data encompasses aspects of competitive analysis, social feedback, and sales data, while also helping to find the ideal customer base and refining a product to appeal to existing customers. Big data studies customer behavior and preferences to determine their buying behavior, with complex analytics incorporating this data with relevant sources such as analyst reports, market trends, industry applications, and social media activity.
2. Higher productivity
Efficiency determines the success of startups that lack the flexibility of larger, more established companies. Every second is important to a startup competing against the odds to meet a deadline. Fortunately, using big data can help increase productivity in startups.
In addition to reducing advertising and marketing time and resources through optimal target groups, Big Data improves unlimited scalability and live data to improve a company’s agility in responding to changing markets. For example, a product launch may include big data and a cloud-based infrastructure to enable automated, real-time updates on social media to help target marketing and advertising.
Big data helps startups increase their market share through a comprehensive analysis of market trends and the ability to work with a cloud-based infrastructure to support real-time updates.
3. Reduced indirect expense costs
Calculating costs can be a chore for startups that lack expertise in the field. Fortunately, startups can use big data to reduce indirect expenses like utilities, filing, office equipment, insurance, professional services, and rent. Big data helps track and analyze information automatically and helps identify larger trends. When analyzing indirect spend data, big data can help produce actionable insights that can help reduce costs and increase your bottom line.
4. Useful analysis of social behavior
Startups need to use social media to their advantage. Social media contains a bundle of big data qualities in terms of customer behavior and helps monitor brand progress. Social media analytics provides big data that examines aspects such as impressions per post, interactions on the desktop instead of mobile devices, comments, retweets, likes and transaction history in order to obtain a comprehensive overview of the current development of a brand. It can also determine where it stands in relation to the past.
Big data on social media also extends well beyond your startup’s pages. Big data analyzes the users on your startup’s social media and crawls their profiles to find their interests and other personal identifiers. Big data offers a deep insight into a market that inherently tends to get involved in social media with your startup.
5. Effective automation
Big data can help determine what exactly a startup should automate. For example, it makes sense to automate the process of predicting customer preferences rather than forcing employees to do it manually one at a time. Big data is easily adaptable for personalization by studying past customer behavior to predict preferences and personalize their user experience as a result. Social media tracking, competitive analysis, and sales report studies can help identify buying patterns in a target audience
Whether you are tracking big data from your website traffic using Google Analytics or social media using Hootsuite, this data can provide vital insights to make marketing and general public relations efficient and effective.
Startups that use big data have the upper hand over startups that don’t. Big data can increase a startup’s marketing and advertising efforts by identifying the ideal market and providing insights into social media behavior and indirect spending costs. Big data helps startups get an overview of their current history, and startups use this data to make the most optimal decisions now and in the future.