Just a few short years ago, the idea of using machine learning and AI seemed like something out of a sci-fi novel. But today, these concepts are much more commonplace and understood throughout the business world. Over half of all businesses in the United States report that they have adopted big data into their practices, as compared to just 17% who were using this technology in 2015.
Numbers like this prove that big data is not just for big names like Amazon and IBM anymore. Companies of all sizes can benefit from these hard number insights.
So why are so many companies getting in on this?
The numbers make it absolutely clear. Businesses that use big data have reported revenue growth of 49%, with 83% of these businesses agreeing that it has made them more profitable than ever before.
Here is exactly why and how big data supports exponential business growth in these four key areas.
Identify Talent Weaknesses and Strengths
On the surface, the term “people analytics” may sound like a Big Brother-esque concept. However, it is actually extremely beneficial for companies and their internal culture. Essentially, big data systems record and analyze information to identify any gaps in talent pools that are negatively affecting an operation. This is done by gathering data on employee engagement, productivity, and output to help HR teams and managers create better internal strategies.
The benefits of this kind of technology are clearly related to company growth. One report found that the most significant improvements businesses saw from using big data for human resources included higher retention, more effective decision-making for internal promotions and better measurement of employee engagement and morale.
This data-driven approach to the big picture of business planning helps leaders properly evaluate the talents that their company needs in order to improve. Big data insights from people analytics can also directly fuel marketing and sales growth with omnichannel customer targeting strategies for all-around business evolution.
Improved Hiring Decisions and Strategies
The hiring process is enormously expensive and risky. Making the wrong decision can wreak havoc on company budgets, and can even damage reputations. In fact, a bad hire can result in a 298% negative ROI on the cost of recruitment. In some extreme cases, it can cost businesses up to $240,000 to re-fill the position.
Data-driven recruiting software can guide hiring managers through the process by automatically qualifying the strongest candidates ideal for both the position and the company. Systems that use big data intelligence can more accurately assess candidate profiles based on their hard and soft skills. Some tools even use AI technology to create personalized assessments to measure an applicant’s aptitude, communication skills, situational judgment, problem-solving ability, and more.
One of the many benefits of data-driven recruiting is it gives hiring managers the proper knowledge they need to make confident decisions and reduce the risk of turnover.
Assist Customer Service Demands 24/7
Plain and simple, keeping customers happy is the key to growing a business. 76% of consumers base their opinion of a company and how it values them on their customer service experiences. But unfortunately, customer issues are not confined to a traditional 9-to-5 window of time.
If a disgruntled or confused customer has to wait for a response, it increases the likelihood that they will take their business elsewhere. This is why many companies have turned to AI-powered chatbots to handle inquiries with instant responses. These smart bots can be programmed to analyze customer language to assess the situation and provide answers to common questions or concerns. If you run an e-commerce store, some bots can even offer personalized product suggestions to help boost sales numbers.
As it currently seems, chatbots appear to be the future of customer service. Additionally, companies using chatbots had a 46% increase in repeat customers due to their ability to provide quick assistance.
Beware of the pitfalls of big data when it comes to dealing with customers (humans though). Businesses have the chance to reinvent customer service using big data as fuel – but they need to take care not to blow up on the launch pad.
Prepare for Future Demands
Predictive analytics use data-mining to accurately measure the likelihood of future trends. This technology gathers intel by tracking important metrics like consumer data, inventory statistics, and sales patterns to spot common threads and make accurate projections. You can even transpose your data into insightful maps and visualize your data easily
The great thing about big data analytics is that it can be used for all sorts of industries and purposes. For example, Walmart collects customer data from POS systems to forecast product trends and ensure that their inventory is stocked properly to fulfill demand. As a result of this strategy, Walmart has reported 50% increases in online sales and higher earnings than ever before.
Using predictive analytics is perhaps the best way to ensure continuous growth and success. Whether it is used for marketing, supply chain management, or tracking and integrating online and offline customer data via the point of sale, this technology can guide businesses towards better strategies with accuracy and precision.
Over to You
Big data has been a big trend for some time now, and this is only the beginning. The industry has already surpassed the $33 billion mark and it is expected to hit $40 billion this year.
No doubt about it, big data is here to stay. It can support stronger internal structures for improved talent management and acquisition. Plus, it can improve sales numbers by creating better customer service experiences and predicting future trends. Businesses that don’t get on board with big data are sure to be left behind.