By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    Promising Benefits of Predictive Analytics in Asset Management
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: Small Businesses Use Big Data to Offset Risk During Economic Uncertainty
Share
Notification Show More
Latest News
ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
ai for small business tax planning
Maximize Tax Deductions as a Business Owner with AI
Artificial Intelligence
ai in marketing with 3D rendering
Marketers Use AI to Take Advantage of 3D Rendering
Artificial Intelligence
How Big Data Is Transforming the Maritime Industry
How Big Data Is Transforming the Maritime Industry
Big Data
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Big Data > Small Businesses Use Big Data to Offset Risk During Economic Uncertainty
Big Data

Small Businesses Use Big Data to Offset Risk During Economic Uncertainty

Discover how small businesses can use big data to offset risk during economic uncertainty and gain a competitive edge in their industry.

Ryan Kh
Last updated: 2023/03/02 at 9:25 PM
Ryan Kh
7 Min Read
big data use in small businesses
Licensed Photo from DepositPhotso - 72833357
SHARE

Big data technology used to be a luxury for small business owners. It helps companies operate more efficiently, tap larger markets of customers, and solve some of their most complex challenges.

Contents
Big Data Can Help Companies Persevere in the Face of the RecessionWhat are the biggest reasons Big Data can help companies trying to be more resilient during a recession?Big data helps businesses address cash flow needsData analytics helps companies make better pricing decisionsData mining helps companies better understand their target marketsPredictive analytics technology can help companies forecast demandBig data is very important for companies trying to stay afloat during a recession

In 2023, big data Is no longer a luxury. It is an essential resource that companies have to utilize. One survey from March 2020 showed that 67% of small businesses spend at least $10,000 every year on data analytics technology. Of course, this was before countless businesses started implementing work-from-home policies or targeting customers online. Since so many companies went digital during the pandemic, that figure has probably increased over the last few years.        

Big data is essential for small businesses since the economy is poised for a possible recession, which can make it even more difficult for struggling businesses to stay afloat.

Cash flow concerns are also becoming more prominent as the economy gears up for a recession. Companies which require immediate business funding are using data analytics tools to research and better understand their options.

More Read

How Big Data Is Transforming the Maritime Industry

How Big Data Is Transforming the Maritime Industry

Utilizing Data to Discover Shortcomings Within Your Business Model
The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
How Big Data Is Transforming the Renewable Energy Sector
How Pictographs Make Technical Data More User Friendly

However, there are even more important benefits of using big data during a bad economy. As a result, they will need to invest in data analytics tools to sustain a competitive edge in the face of growing economic uncertainty.

Big Data Can Help Companies Persevere in the Face of the Recession

Big data technology can offer enormous benefits for companies. Kaneshwari Patil wrote an article for Nasscom Insights about the reasons companies should invest in big data during the recession.

Patil points out that companies often make reckless decisions when they are worried about the state of the economy. For example, they may impulsively lay off workers or discontinue important projects, even though those decisions might have serious long-term ramifications.

Businesses need to make sensible, well-thought-out decisions to prepare for economic challenges. Patil and other experts argue that big data can help them with this.

What are the biggest reasons Big Data can help companies trying to be more resilient during a recession?

Big data offers many benefits for companies in any economy. These benefits become even more important when tight cash flow and inflation threaten them. Some of these benefits include the following.

Big data helps businesses address cash flow needs

A growing number of companies use big data technology to improve their financing. They can use data mining tools to evaluate the average interest rate of different lenders. They can also look for correlations between various variables that influence funding, so they can better position themselves to get better funding opportunities.

Data analytics helps companies make better pricing decisions

Anybody who has ever taken a business class understands the four “P’s” of marketing. These factors are place, promotion, product, and price. Many business school professors will tell you that price is the most important because it is the only factor that directly impacts revenue. Therefore, every business must set its prices carefully to maximize revenue and maintain a decent profit margin.

Big data technology can significantly improve the company’s pricing strategy. Walter Bater and his colleagues at McKinsey wrote an article on the benefits data-driven pricing provides. Big data algorithms can evaluate a variety of factors, including economic conditions, supply and demand changes in the market, seasonal patterns, and recent changes to the company’s brand position.

Many businesses need help making good pricing decisions during a recession because it is difficult to gauge how customers will change their purchasing patterns. Therefore, data-driven pricing may be even more critical during a bad economy.

Data mining helps companies better understand their target markets

Every business needs to carefully understand its target market. This is true in any economy. However, it becomes even more vital during a recession.

Consumer behavior and priorities change when the economy takes a turn for the worse. The cost of not understanding their behavior is also higher. Most companies will have much thinner profit margins or may even be losing money. Their losses may be much steeper if they are not highly responsive to customer preferences.

Therefore, it is a good idea for companies to use data mining techniques to learn as much as possible about their customers during a bad economy. One of the best tactics is to use data mining tools to learn more about customers on social media. They can find out what customers say about their brand and priorities. This helps companies adapt to meet their changing expectations. 

Predictive analytics technology can help companies forecast demand

One of the biggest challenges businesses face in any economy is predicting demand for their products or services. This challenge becomes even more significant When the economy takes a nosedive since the market is likely to change considerably.

Many different factors influence demand for any product. Therefore, it is a good idea to have predictive analytics models that account for these variables. More advanced predictive analytics tools consider economic conditions when forecasting customer purchasing patterns.

Big data is very important for companies trying to stay afloat during a recession

The economy has been uncertain in recent months and is likely to plummet in the near future. Fortunately, small businesses can use big data technology to be more resilient. They should utilize the abovementioned big data strategies to build their brands and maintain profitability. 

TAGGED: big data, small businesses
Ryan Kh March 2, 2023
Share this Article
Facebook Twitter Pinterest LinkedIn
Share
By Ryan Kh
Follow:
Ryan Kh is an experienced blogger, digital content & social marketer. Founder of Catalyst For Business and contributor to search giants like Yahoo Finance, MSN. He is passionate about covering topics like big data, business intelligence, startups & entrepreneurship. Email: ryankh14@icloud.com

Follow us on Facebook

Latest News

ai software development
Key Strategies to Develop AI Software Cost-Effectively
Artificial Intelligence
ai in omnichannel marketing
AI is Driving Huge Changes in Omnichannel Marketing
Artificial Intelligence
ai for small business tax planning
Maximize Tax Deductions as a Business Owner with AI
Artificial Intelligence
ai in marketing with 3D rendering
Marketers Use AI to Take Advantage of 3D Rendering
Artificial Intelligence

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

You Might also Like

How Big Data Is Transforming the Maritime Industry
Big Data

How Big Data Is Transforming the Maritime Industry

8 Min Read
utlizing big data for business model
Big Data

Utilizing Data to Discover Shortcomings Within Your Business Model

6 Min Read
data-driven approach in healthcare
Analytics

The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas

6 Min Read
big data transforming renewable energy sector
Big Data

How Big Data Is Transforming the Renewable Energy Sector

6 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?