By Prabhakar Tiwari, Chief Growth Officer, Angel One Ltd
Every business looks forward to achieving sustainable growth and reaching new heights. The company’s growth leads to new opportunities and exciting experiences for employees. However, growth accompanies challenges such as meeting the demands of diverse customers, managing efficient workflows, dealing with competitors, planning and decision-making, and more. In this era of digital advancements, data is the most crucial asset for businesses to meet their growing challenges. With the help of data, companies can make accurate and informed decisions by applying advanced technologies such as artificial intelligence and machine learning.
Businesses that are adopting data-driven strategies are able to meet challenges and are capable of moving ahead of their competitors. According to Forrester, data-driven companies are growing at an average of 30% each year and consistently outperforming their competitors. The power of data is growing massively, and it is enabling businesses to enhance their performance, streamline operations, and develop strong customer relationships. FinanceOnine estimates that big data global revenue will reach $119 billion by 2025.
Role of data in enabling businesses to overcome growth challenges and thrive
According to Forbes, 79% of enterprise executives say that not embracing big data will cause them to risk their competitive position and drive them out of business, and around 83% use data to gain a competitive advantage. Businesses are leveraging big data to overcome challenges through valuable data insights to make strategic business moves and make better decisions. Data-driven strategies help businesses leverage insights from data to meet challenges, identify new opportunities, provide better customer experience, and grow revenue.
Data prediction helps in reducing the costs
Big data analytics provide valuable insights that help organisations to improve efficiency and reduce costs. One of the most significant advantages of the effective use of data is the ability to reduce costs from marketing and other activities. Insights derived from data enable businesses to run more targeted and personalised campaigns. By leveraging big data, companies can cut operational costs and generate higher revenue. As per the BARC research, companies that use big data increase their profit by 8% and decrease costs by 10%.
Big data prediction enables to boost sales
Using big data analytics, companies can increase their sales, which is one of the primary motives of businesses worldwide. Companies face challenges when they do not have sufficient insights to know their target customers and their needs. By making the most of sales KPIs, businesses can make intelligent moves. Companies can get better customer information by aligning their strategies and mining the sales data. The more sales data gets analysed, the more information companies will have that allows them to segregate valuable points. The proper use of tools for analysing sales data helps gain faster information at fingertips. Organisations can also automate the processes based on data analysis and boost sales.
Data prediction helps in acquiring new customers and retaining the existing ones
According to a report, one-third of industry professionals believe that data-backed methodology is critical for understanding customers and making decisions. According to McKinsey, 71% of customers expect companies to deliver a personalised experience, and three-quarters will switch if they do not like the experience. Data plays a crucial role in acquiring customers and retaining the existing ones through better services by gaining deep insights.
Data-driven organisations are 23 times more likely to acquire new customers, 6 times more likely to retain them, and 19 times more profitable. If businesses fail to understand what their customers want and deliver poor quality services and products, they face challenges, and their growth ceases. Big data helps in observing customer patterns and trends, and the more data the company collects, the more valuable insights on patterns and trends it can drive. The big data analytics strategy in place gives details on the customers’ behavioural patterns and delivers what customers want. For instance, it enables Netflix to save $1 billion per year on customer retention.
Data prediction to drive innovation and product development
As per the Chicago Analytics Group, data analytics helps in 25% faster innovation cycles. Innovating and developing new products is not a challenge anymore with the effective use of data. By collecting huge data, businesses can gain more critical insights that allow designing new products as per the needs of their customers. With the help of big data analytics, companies can also track various activities of their competitors, reviews of products, and whatnot. 64.2% of businesses claim that they are driving innovation using big data. Therefore, by harnessing big data, organisations can innovate new products to meet the changing demands of their customers and build a loyal customer base.
Innovation is the key to the success of financial firms in this digital world. Big data offers deep and crucial insights that aid in making innovations. These data insights provide a better understanding of trends, customer behaviour, and needs. Therefore, firms can make informed decisions about new products and services.
Fraud and compliance
Security is essential to financial firms as they transact vast data daily. Protecting their sensitive and confidential data is of utmost importance. It requires different transactional datasets and additional information such as customer behaviour. With the help of big data, companies can collect massive data indicating the patterns of fraud and take necessary steps.
Conclusion
Organisations that are leveraging data are reaping the incredible benefits of it. It acts as a catalyst in the growth of businesses by dealing with challenges effectively. Companies can make well-informed decisions with accurate data prediction and not rely on guesswork