Why Big Data Will Drive the Next Big Boost in Productivity Gains
The Big Data argument speaks quite clearly for itself: the better a brand knows its customers, its interaction with those customers becomes more meaningful, ultimately increasing the likelihood that the customer takes some sort of action whether it be a purchase, a positive review, a recommendation or otherwise, and repeat that action in the future. However, the tech landscape provides a backdrop that basically changes with the seasons, so as the hardware changes, so does the consumer.
Moore's law suggests rapid obsolescence in technology thereby driving down costs of goods which, in turn, expands the ubiquity of them. As a result, more and more folks are using devices that transmit information and build personal profiles for themselves self-identifying their habits, tastes and behaviors. Creating, in effect, the essence of Big Data.
With the information created through social sharing, GPS, and consumers essentially foregoing privacy to provide facts about themselves to their social network and "friends," brands can know exactly who is most likely to purchase their product and where -- nearly eliminating the chance that their words may fall on deaf ears or their resources misallocated. These identities are what businesses use to reach prospective customers and better serve their current customers.
The paradigm has shifted much more heavily in favor of consumers telling companies what they want, not the other way around. Armed with this knowledge, companies have a much clearer picture of who could be a potential customer and can therefore focus their time and energy to reaching those prospective customers and not trying to figure out who they are thereby making businesses far more productive in customer acquisition. This cycle continues in perpetuity so that brands are constantly gathering research, processing that research, and taking action on the findings.
As a result of the rapid turnover in technology, most of us can be considered early adopters in one way or another. However, what makes Big Data valuable is not only its propensity to attract new customers, but to instill loyalty in those customers. As a company becomes more productive due to the successes that knowledge of Big Data will bring, it allows the company to better manage their customer base, and keep those customers longer -- thus running their business much more efficiently.
Because of the affordability and ubiquity of technology, brand interaction is happening across many different platforms making Big Data increasingly resourceful and accurate and most importantly -- actionable. Advancements in the cloud make data storage nearly endless so consumers can basically keep a running history of their interactions with brands.
So now that more people have these devices, more data is being created all the time as the majority of phones are now smart phones. So the percentage increase in data is in direct correlation with the product life cycle of Moore's Law. This cycle will ultimately drive the next big push in productivity gains as companies acquire and retain customers much more efficiently as they are infinitely more targeted and nimble in communicating with their customers, making Big Data an invaluable resource in a company achieving its end goal: profit.
How do you thing Big Data will play out in terms of productivity?
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