Startups is always a risky proposition. There’s no guarantee for anything- be it users, be it investors, be it funding, be it growth. Around 97% of startups in the world fail to make a hit; it’s only 3% of the ideas and their execution that galvanize. And yes, there are plenty of reasons behind a startup’s success- it may be the uniqueness of the idea, it may be the UI/UX design of the app built, may be the problem it solves or the ease it provides to the public or an enterprise.
Studying lately, we have realized that there’s one thing in common among most startups who have capitalized on their innovative idea- it’s the judicious and effective use of Big Data. They have influenced market direction and user behavior by using this massive data gathered from the various analytics tools and activities. Most startup app development companies and their experts are now focusing on using the large amounts of data generated while users are on your app.
Taking a simple example of how companies are using big data –Xerox- an international corporation selling document solutions- has been successful in cutting its employee turnover to half by recruiting the best talent. Using cognitive analysis and personality-skill testing, Xerox has found the apt resources that matched the actual job description. With the help of big data, they’ve found the correlation between employee retention and employee engagement.
This is one of the brightest ways your startup can take advantage of massive data generated every second. There are several other ways that starters can learn from the established brands who have put big data to work and harnessed the maximum potential of its tools and technologies.
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If you’re a startup venture or are still incubating your idea, here are billion-dollar, proven strategies that you can use for big data analytics, as implemented by globally recognized brands which were once a startup.
Profitable strategies to find the golden ticket
Big data has come of age since its inception in 2006. Earlier it was a batch process run overnight, but with companies demanding immediate insights into real-time data, many advanced big data startups have cropped up including Couchbase, Cognonto, MapD bringing the best analytics and processing technology on the table.
Starbucks: The coffee giant has used big data to identify the potential success of their new coffee shops in a particular location that in close proximity to other stores. Having opened adjacent coffee shops in the same area, Starbucks has guaranteed success for all its stores just by making intelligent use of location-based data, demographic data and customer data. With this data, they’re able to judge the success rate of each new location based on the inclination toward revenue growth.
Capital One: The US-based Financial Corporation has intensively studied the spending habits of their customers using demographic data and they’re able to identify the most optimum times to present various offers to the customers, ensuring more leads and highest conversions.
Amazon: The great grand example in the E-commerce and retail industry that’s using big data to make people love the platform. And we all know the results. Amazon generated $6.4 billion in sales from its retail subscription services, as per the latest 10-K Annual report. It has been focusing entirely on smart market visualization, better process maps. Amazon has also realized that in order for customer interactions to be individualized and humanized, they must be well informed. And for that, customer data in every form is the most useful.
In the days to come, smart retailers will be more attentive towards their data-gathering efforts so that they can use the results the best way.
To make the most of Big Data, you, as a starter, should understand that being transparent and giving a sense of control to consumers while they are using your products and services are the most soothing ways you can win their hearts. Because they aren’t impressed only by how much you know about them but what you are going to do with what you’ve found.
Now, you have to decide how you are going to put the data to its best use. We hope you’ll find some more innovative ways to deal with Big Data. Share with us your opinions. We’ll be glad to hear from you.
