Big data is the data that is collected in an untold manner. It gathers from clicks, transactions, financial data, sensors, and an increasing number of IoT connected devices for your better understanding. However, small data has a different meaning. It is assembled after conducting primary research wherein research involves online communities, focus groups, etc.
Or small data is derived from understanding or noticing individuals talking and observing their mentalities, inspirations, and values.
Big data has the Big Hype. However, people hardly know or understand well about small data. Small data requires the right tools and a data-savvy mindset to make it work for you. Now, the companies and their top executives should use small data for decision-making and predicting trends. Precisely, there are multiple benefits of using small data strategies.
Take a read.
Benefits of small data
Small data is everywhere
In social media, there is ample data available that talks about buyer decisions and customer lifestyle. Everyone who is using a computer or smartphone is generating data in some or the other way. The data is generated every time someone clicks on an ad or tap on a product or search for a particular page on Instagram.
Small data is understandable
It is easy to reach more and more customers with small data. By nature, it is easy for humans to comprehend. Unlike big data, it needs no further simplification or scrapping to become understandable. It is actionable by itself. Therefore, as soon as you collect the data, you can use it immediately for your business.
Small data generates revenue
A company having a list of buyer’s preferences and choices is always at a benefit, indeed. It can merely manufacture the desired goods and send them further for public use. Hence, the revenue maximizes and creates scope for further development. The data that is easy to comprehend benefits the entrepreneur and the end-users by delivering the product of their preference.
Small data favors customers
Even if you don’t realize it now, your customers value small data over big data. When they get the right product for which they were searching or the facility to put filters in personalized shopping, it is due to small data technologies. When we talk about small data, it is easy to understand and immediately solve the user’s concern.
Knowing and accepting all the benefits of small data doesn’t end the value of big data. The small data and big data are used in combination with the success of several organizations.
Use case of big data + small data
Apple is a large organization that is well-known for its high-tech gadgets across the world. It makes use of both big data as well as small data in combination. Apple used to manufacture its products iPod and iPhone in the color white. After the customers whined, they needed the gadget to be dark, which became a huge success.
So the color suggestion of dark was generated from big data technologies basis customer activities and actions. In contrast, the color suggestion of “white” gadgets is based on the customer’s feelings, emotions, and psychology. Therefore, the “whats” result from big data and the “whys” result from small data.
Similarly, every organization takes help from big data and small data. When it comes to decision making regarding a product, it includes the target audience, choices, regional preferences, weather, and more such factors. Therefore, a product design merges small data and big data into one place to generate the result.
Strengthens small data
For a company to strengthen its small data analysis, it must improve marketing automation, feedback taking process, sales & CRM (customer relationship management), social media listening, customer service, and more. Enabling the marketers to slice and dice around the customers to understand their voice and opinion helps small data generation.
Overall, the changes led by small data come to cost reduction, low customer acquisition costs, improved customer retention, and adds new revenue channels. Therefore, if a company walks on the path of incorporating small data strategies, it will become easy for the company to include profits and radical business opportunities.
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