The concept of big data can be scary to small companies. There is a general consensus that only enterprise level organizations have access to and can benefit from the ever-increasing amount of information available. This is just simply not the case, as startups and small businesses can (and should) harness the power of big data in order to grow.

The term “big data” simply refers to the massive amount of information collected from various devices and sources and stored in a central database, either onsite or in the cloud. Through the use of certain software programs, all of this data can be analyzed in order to make better informed business decisions.

And with the failure rate for startups being 90% Make an Inquiry about this news, you certainly need all the help you can get.

After years of working with both startups and enterprise businesses here at iTechArt, we’ve learned a thing or two about how to use big data to make big decisions.



And we know that in order for startups to scale successfully, they have to put big data to work for them. Here are 7 ways that startups can benefit from big data technology.

Big data can tell you if your idea will be a success or failure.

Before you even begin to build your MVP, you can use the power of big data to make sure there is a market fit for your solution. According to a 2018 report from CBInsights, Make an Inquiry about this news the #1 reason startups fail is lack of market need.

Even though money is tight during the initial startup phase, the most important investment you can make is to either hire a data analytics specialists or use a cloud-based software solution such as IdeaScale Make an Inquiry about this news or Qualtrics Make an Inquiry about this news to analyze your market.

Once you know there is a solid market need, you know it’s safe to move forward. You can then continue to use all the big data you collect along your startup journey for future forecasting and modeling.

Big data can help you conquer your competitors.

The old adage “keep your friends close and your enemies closer” applies to growing a startup as well. The more you know about your competition, the better equipped you are to outperform them.

Gathering intel on your competitors can be as easy as following them on all social media channels and “listening” to what they and their customers are saying, and then using that information to your advantage.

Not only can you utilize big data to size up your competitors, you can also use it to gain a huge advantage over them. Because of the “high cost” stigma associated with big data analysis, a lot of startups don’t even consider using the technology.

This means that if you choose to implement big data analyses, you’re already way ahead of many in your market.

Big data can help you build a loyal customer base.

Using a “spray and pray” marketing approach where you simply try to broadcast your message to the largest audience possible and hope someone pays attention is a huge waste of time and money. Big data can deliver much more bang for your buck by helping you market only to those consumers who are most likely to buy.

In order to truly grow your startup, you’re going to need a base of loyal customers who become “brand evangelists” - spreading your message across social media and providing you with five-star reviews and feedback that makes other people want to buy. The best way to nurture these types of customers is through personalization techniques derived from studying and knowing their pain points, personality traits, and buying preferences.

By using big data for marketing and micro-targeting a smaller but more engaged audience, you’re more likely to meet and exceed customer expectations.

Big data can make it easier to collaborate with your team.

Big data grows from small data, which internally includes all the daily emails, messages, chats, memos, and other types of office communication. Now entire teams can work from one centralized hub - such as as a Google drive - to create, edit and access all documentation.

Analyzing all of this information can help you create more efficient workflows and business processes.

Many companies also utilize a central data storage hub for things like customer service response calls or live chats in order to maintain a database of information and answers that can be used by other customer service reps and office staff to troubleshoot future problems.

And with so many startups working with dedicated development teams Make an Inquiry about this news or freelancers in order to save money and office space, having one location or solution - such as Slack Make an Inquiry about this news - to process all the communication and data helps to facilitate better working relationships throughout the entire organization.

Big data can help you predict the future.

Predictive analysis is the process of taking all of the information you’ve gathered and using pattern recognition algorithms via machine learning to predict probable outcomes.

Big data can be used in predictive analysis in ways such as lead scoring - helping to determine at which point a customer is most likely to buy. It can also help you create detailed customer personas based on previous behaviors and buying habits.

This helps you deliver a higher level of customer service as well as a more personalized buying experience.

Automating market analyses, forecasting models, and even the sales and marketing processes while letting big data do all the heavy lifting can free you and your team to focus on making your product or solution the absolute best it can be.

Big data can help you plan for the future.

Once you’ve harnessed the power of big data to get you through the initial startup phase - and perhaps even to the IPO stage - you can continue to use data analytics for business to help you plan for the next phase. And by this time, you will have accumulated even more (and even more valuable) big data!

Information obtained from data mining for business analytics will now determine every move you make. Perhaps you want to roll out a new product or open another store or office location.

You can pinpoint exactly what type of product or which location your customers would most prefer based on previous buying trends and behaviors. You can literally “crowdsource” your customer base and ask them what they want, then use their responses to best predict the future of your company.

Big data helps you maximize value.

The more you know, the easier it is to make critical business decisions. And with a solid process for analyzing big data in place, you can leapfrog over your competitors and grow even faster, as opposed to wasting precious time and money agonizing over what to do next.

Big data allows you to follow the Agile method throughout your startup lifecycle: Experiment. Fail. Learn. Repeat. With constant up-to-the-minute information telling you what’s working and what’s not, you are able to make important changes faster and more efficiently.

From zeroing in on your target market to knowing your customer’s exact preferences and pain points, big data takes the guesswork out of everyday business processes and allows you to focus on providing even more value to your audience.

Conclusion

Knowledge is power and information is knowledge. We now have more of both than at any other time in history.

Being able to leverage big data for small business in order to determine market need, crush your competition, build a customer base, communicate with your team, maximize productivity, and plan for the future can help you grow from struggling startup to exceptional enterprise.

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