Chances are the answer is a resounding yes. Look no further than big data.
The current darling of the business world offers many advantages to businesses of all shapes and sizes, including yours.
So just how can big data save you money? And what can you do to give your businesses the biggest chance of succeeding with big data?
Big Data and How to Use It
Businesses these days have access to huge amounts of data, from sources such as website metrics, customer histories and social media stats.
These sets of data are too big to handle using everyday office software, and so are known as big data. Analyzing big data can offer insights on many aspects of your business. When it comes to your budget, analyzing big data offers insights that make things easier on the purse strings.
Saving Money by Spotting Leaks
When UPS started using big data to make sure their drivers were following the most efficient routes, they saved an impressive 15 million gallons of fuel during the first year. You too can use big data to see where your business is leaking money.
For example, you might track your sales over the course of a year and notice that during November you are buying in more stock than you need, some of which is going to waste. Now you can adjust how much you buy during that month, and save money.
Or perhaps you’ll compare the amount spent on a specific marketing channel with the revenue that comes back as a result of it to find out if the outlay is worth the return.
By using big data to track in-comings and outgoings or, like UPS, to spot inefficiencies in the way your business is run, you can spot potential leaks and take action.
Save Money by Knowing What Works
One of big data’s strengths is its usefulness in tracking customer behavior, and this can certainly save your business money.
Take for example your social media stats.
By getting an overview of which updates are the most liked and shared, which topics are the most popular, you can see what matters to your customers. That means you can give them more of what they want and tailor your business to match their needs, which is a more efficient use of your resources.
By using big data to analyze what is most liked, what provides the best return on investment and what is most popular with your customers; you can save your business a considerable amount of money in the long term.
How to Succeed With Big Data
To make big data work with your business, start small.
As pointed out in “Big Data Meets the Little Drone“, it’s often best to integrate big data with your existing systems at first, rather than going all-out on new technologies.
By starting small and honing in on one specific area, you can reap the rewards of big data without emptying the coffers.
When planning your big data adoption, don’t forget person power.
Big data needs someone to harvest it and analyze it. By having a good idea of who will do that and making sure they have the skills, time and support necessary to carry out the task, you’ll be giving yourself a better chance of getting what you need from big data.
Plan carefully, figure out where it’s best for you to begin, and work in enough time and support for you and your employees to get the job done, and you will soon be using big data to make big savings in your business over the long term.
Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net
About the Author: Tristan Anwyn writes on a wide variety of topics, including social media, SEO, big data and saving money in your business.