Small data can make a big difference! While interest in big data has always grown, but it comes with many potential downsides too, such as its inability to determine meaningful correlations . As opposed to this, while interest in small data hasn’t gained so much traction, it can lead to huge benefits for your business, with very little downsides! Continue reading to find out more!
Understanding Consumer Habits Better
Consumers are creatures of habit. Every single day, 46% of our behavior is repeated . This creates a huge opportunity for companies, by providing them with a chance to tap into small insights within customers’ behavior. For example, this can tell you what possessions value most to your customers, or what products they are more inclined to buy. Using small data such as this, you can position yourself to be exactly what the customer wants.
Building a Better Experience
Companies need to connect with their consumers at a deeper emotional level. This is done through the use of small data to create experiences for customers. This experience is created by digging deep within the small identity data that companies have about their audience. The data is beneficial as it answers a certain hypothesis under research or it might help in making more informed decisions about their future hypothesis.
Gaining Loyal Customers
Your customers don’t just want you to help them earn rewards through loyalty programs; they want you to help solve problems in their daily lives by providing them with more personalized benefits – something that makes them feel like they belong. To do just this, and thereby help gain loyalty, companies can use small data and its insights to shine really.
Better Interpretation of Big Data
Big data has its shortcomings. For example, it can figure out correlations but isn’t very effective in differentiating between meaningful and useless ones. Small data will help with all of that, by turning the whole chaos into a much simpler situation. When big data points out the patterns but doesn’t explain why they occur, small data takes over by simply asking the people involved, noticing these small insights, and presents you with the “why” behind the patterns.
Better Product Innovation
The key is to figure out what gap you are trying to bridge in the customers’ lives. For this, you first need to focus on their lives. This can only be done through small data, which allows you to observe and learn from them better. Once this happens, once you figure out what need you’re trying to fulfill, everything else falls into place. Small data helps you identify the unmet desire that you need to design your whole company around then.
Move to Small Date
Incorporating small data into your business model will surely be a big step for you, but it will also have huge benefits! You can create everlasting relations with your customers and gain many valuable insights into their behavior all through the use of small data.