The other day I was talking to somebody and that person mentioned “Data is the new gold” and I couldn’t help but agree! It made me ponder for a while, and it got my thinking cap on. We all know Data is the new Gold but what do we exactly know about the journey of this Gold? Let’s try to understand and unfold the new secret sauce for any good business recipe–Data.
Introduction
Ever wondered – How much data do we really produce?
According to the latest sources, 402.74 million terabytes of data is created each day; which is roughly equal to 350 football fields. The amount of data created has grown yearly since 2010 and we know there is no going back. How do we create this data? We create data with every digital footprint we leave behind – be it through social media activity, online searches, emails and messaging, e-commerce transactions, or content creation. (Oh, look, I fell into my own trap; I’m generating data too!)
From website interactions and mobile apps to online gaming, surveys, and comments – name it, and there’s data for it. You create it, and it’s all there to be found!” Let’s explore the “How” and “Why” of this modern era Gold!
Bigger The Data, Bigger The Insights!
In this day and age, almost every business utilizes data to improve both the operational and economic efficiency of their respective business. To take a deeper look at this landscape, here are some top giants using Data Analytics to gain a competitive business edge: Meta, Amazon, Google, American Express, National Accounting and Audit Firm BDO, Netflix, Starbucks, T-Mobile, Marriott, Uber Eats and the list goes on.
Every big or small thing we do on the internet generates data that could be used to track the next move in the business game. Web surfing, social media, chat platforms, and each digital footprint certainly connect the missing dots. Let’s take some examples of how these companies really use this data for us or against us!
We all have experienced a rise in price for an airline ticket if we check the same route over and over, this is the result of our digital behavior on that website giving them the idea that desperation can make you do things you never thought you would.
Dynamic pricing is the core engine behind which, it runs on Data fuel. When it comes to dynamic pricing, the key is to fully analyze and understand the wealth of data at a company’s disposal. Good quality data, but particularly good analytics can help companies identify factors that are often overlooked – such as the broader economic situation, consumer purchasing behaviors, and external influences – and reveal what drives optimal prices for each customer segment and product, helping them decide strategy behind the ultimate money making part Company Sales. Just like Dynamic Pricing we have other techniques helping in decision making, let’s explore other cases.
Marriott is another example in the hospitality industry. They go so deep with utilizing data that they even follow if famous musicians are playing at Madison Square Garden so they can adjust their rates at their nearby hotels. Another popular streaming platform tracking your footprints is Netflix. When it comes to Netflix the case is no different, they collect data such as the time during which their subscribers watch the show- if they binge-watched it or it took them some time to finish, did they pause the show, and if they resumed it after pausing. And all of this is used to create personalized accounts for each customer!
Next on the list is, Starbucks, a company that has taken this quote way more seriously “I have measured out my life with coffee spoons.” Let’s assess it. The way they collect data is by providing their customers with Starbucks rewards programs and mobile apps which help them learn more about the buying habits of each of their customers. Starbucks is then using that data to recommend products to their loyal customers, create better marketing campaigns and new menus, as well as decide where they’ll open their next store. This system is so organized that it will offer its customers products based on the season, weather, and location they are in.
Moving further ahead in such examples, whether it’s something small like finding a restaurant nearby or something as big as understanding how a reusable rocket launch works – we all turn to Google for answers! Google estimates the general area that you’re searching from and saves that information with your Web browser or App Activity to show you similar ads and content around. The goal is ultimate personalization, using Artificial Intelligence (AI) to create a personalized platform experience – because why should everybody get the same one?
Who to Blame
Who doesn’t like a Personalized touch? May it be Amazon showing you a gifting suggestion based on your previously ordered gift-wrapped product or Netflix telling you to watch this new suspense movie based on your watch history! Or Starbucks suggesting you ‘drink of the day’ based on your current location’s weather – Which makes you think, Well… A warm cozy cup of coffee doesn’t hurt, right?
How do they Analyze this Data
There are several big data players in the market providing solutions to extract, transform, load, and analyze this data to make an informed decision. Not just big data tools, we also have Artificial Intelligence (AI) and Machine Learning (ML) to help us cross this bridge.
For instance, ML models are provided with training data (which is of course generated by us – remember the football fields reference!) that’s been labeled (supervised learning) or with unlabeled, raw data (unsupervised learning). ML models mimic the way humans learn – by trial and error processes. Over time, well-trained models will make increasingly accurate predictions.
Conclusion
Every trend is not to be jumped upon, but Data is not just a trend but a game changer in the decision-making. This is a proven thing if you want to understand your client and business trends over more than a decade now. Let’s think about this in a way, If you want to buy a car you ask your friends and relatives, you do some market research, and you decide your priorities such as – good mileage, and good looking model. Or may it be a sedan or hatchback, hybrid or electric, and so on. This is what exactly the big data tools do for you using analytics, AI, and ML to create a personalized platform experience and personalized suggestion influencing or maybe just helping decision making.
I don’t see data as a wave, I see – it will be the only way going forward!
Data is changing the game. Believe it or not, companies are using data to play with the biggest influencer around you – Your Mind!
