Small data, what is it?
We understand by small data the process by which data from smaller size y complexityThese are the most common ones, which affect certain parts of a business and are part of the daily routine, allowing for a better understanding of the business. The small data helps to identify opportunities for efficient processes and customer relations.
Without the small data, the big data would be a loose cannon" Martin Lindstrom
Reasons to use small data
There are many reasons why we should use small data. Here are some of them:
- The small data is focused on get to know the customer. Focusing on the needs of the consumer and how to interact with them is one of the advantages offered as it allows for more personalized campaigns according to tastes.
- It's the key to the profile creation CRM since the information obtained through social channels about customers will be used to define, for example, customer segments.
- Increase the Return on Investment (ROI).
- The analysis is simple since everything is around us. For example, it is possible to carry out data analysis through social networks.
Small data applied to business intelligence
Because small data treats data in a more detailed and simplified way and is generated in real time, it allows for much faster decision making, so small businesses have the opportunity to change their actions more quickly.
Thanks to the application of small data, it is possible to avoid or improve three major problems that complicate the correct application of business intelligence:
- Displaying the dataSmall data: Since interpreting a large volume of data becomes a complicated task, small data makes it possible to interpret the data easily.
- NoiseThe interpretation of the data is often complicated by the fact that companies have a large volume of both internal and external data, which may be in different formats and processed by different tools.
- ContextThe context is often lost in the analysis of the data. The data are not simply numbers and percentages, as they depend on a particular framework.
Small data, an applied example
The following is a clear example of the use of small data applied to business intelligence:
The owner of Ikea, the large multinational furniture manufacturing and sales company, shows up at the cash registers of his stores in Spain and starts to survey all customers once they have finished making their purchases.
It starts by asking questions about opinions about the shopping experience in the store, your shopping expectations, the degree of satisfaction with the treatment of employees and the degree of satisfaction with the products purchased.
By collecting the data, the owner of Ikea can obtain forward-looking information such as detecting opportunities for improvement, which allows them to optimize processes and products to better suit their customers.
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