How can startups utilize Big Data?

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The term “big data” has become popular recently. Although there are several definitions of “big data”, it can be explained as a modern type of data which is unable to be processed and analyzed with tradition technology. Three mains properties of big data – or “3Vs” – are Volume, Velocity, and Variety. Later, it is added some other “Vs”, like Validity, Veracity, Value, and Visibility.

These very “Vs” of big data cause some difficulties for startups when trying to utilize it. For example, the huge volume of big data challenges startups to process while most of them don’t have compatible modern technology. The Variety prevents them to process various type of data, including data archived from social networks, from customer care services, or from other databases. Startups may also found difficult in transferring such data to Value  – the most important property among the “Vs”.

Screen-shot-2012-02-27-at-11.18.56-AM However, this does not mean that startups should not adopt big data. In contrast, they can event improve their competitiveness with large company, as long as they pursue wise strategies as suggested following:

Personalization

Each customer has another way of purchasing. The data from such purchasing should be processed chronologically, so that customers will have better personalized experiences, including content and promotions. One good example for this is the differentiation between patrons and new customers. The former should have more personalized experiences, while the latter should have attractive ones.

Flexibility of price

With the Volume property of big data, startups are able to gain tons of information about their competitors, such as prices, turnovers, revenue, or customer’s feedback. On the ground of that information, startups who offer flexibility of price may prevails in market, compared to big companies.

Customer services

Big data lets providers know about their customer’s feedback, even when the feedback is not given in direct way. For example, a customer complaints about company’s service via his personal account on Facebook. With the help of big data, the company gets that information and supports better for him next time. That’s how small companies, including startups, enhance their customer services using big data.

Predictable analysis

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With the huge volume, high velocity and broad variety of data, it is possible for startups to give predictable analysis in several issues relating to their business, such as market trend, customer’s need, or even the change in plan of competitor. That analysis helps them much in building business strategies and development steps in future.

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How can startups utilize Big Data? at: September 6th, 2017 by Huy Do