We live in an age of information technology and even with all the content saturation, information remains one of the most valuable commodities of the modern age. This desire for information has driven various technological advancements. We’re building better smartphones, better computers, learning AIs, and other such tools to get more information.
Unsurprisingly, all businesses and professionals want to dip into this pool of information to improve their overall chances of success. That has made data a very valuable asset, probably just as valuable as gold.
Why is Data Important?
Companies have a far more complex and personal connection with their customers than they ever did before. Actions of customers can directly impact a company’s profits, reputation, and survival. Even something as simple as a negative review from a person with a couple of thousand followers on social media can ruin a product’s reputation.
That’s why it is important to collect as much information as possible before launching a product. Insight into customer behavior, preferences, requirements, and principles can help businesses create good marketing campaigns and better products. This requires access to data.
Different Forms of Data
Data comes in different forms and can be utilized for different purposes. Marketers divide it into two broad categories; small data and big data. Here’s a brief look at these two concepts:
- Small Data – This is the information collected on ground level from a business’ personal assets. For example, information regarding visitor activity collected from your website by Google Analytics is considered small data. You can collect it from various sources like social media profiles, company data, customer service reports, online reviews, etc. All of this information is beneficial and will help your business move forward.
- Big Data – Big data is collective information gathered by internet giants like Amazon, Google, and other entities. The information is collected from a large sample size of thousands or even millions of people. These entities keep track of all activity on their platforms and use the information collected to power their advertising ventures, improve their products/services, and even sell it to other entities. Business owners can use big data in their marketing ventures as well.
Some Aspects to Keep in View
Companies that have access to better data are more likely to create appealing marketing campaigns and products. Because of this, they’re also more likely to succeed in their industry and race ahead of the competition. That’s why many marketers, industry leaders, and business owners consider data equivalent to gold. The more information you collect from your business interactions, the higher your chances of success.
It is important to source data ethically and ensure customers or visitors to your website are aware. You also need to comply with local laws to make sure you’re not getting the information illegally and without consent.