Thursday, July 18, 2024

Turn Your Business Into A Data-Generating Machine.

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(ThySistas.comRecently there was a story in the news about the fundamental nature of our reality. Physicists are now coming to the belief that the universe isn’t fundamentally “stuff” like atoms and particles, but information – or something intangible.

But while the world of physics is being turned on its head, so is the world of business. It’s not so much about what a company makes anymore, but how it uses information to put itself at an advantage. Just look at Google for instance. Yes, the company has its search product, but that’s where the value lies. The real value of a company like Google is in its ability to collect all of the information on the internet and organize it in a way that helps users.

Facebook, Amazon, and Netflix are, at root, data companies, because they can take all of the information provided to them by their customers and transform it into something that people want: better product recommendations, suggestions and advertising.

The good news is that the magic of data isn’t something that is limited solely to the world’s global megacorporations, but rather something that we can all use to put our companies at an advantage. Here’s how.

Fleet Tracking

Many companies operate fleets of vehicles. Not only are fleets expensive, but also risky. Drivers and pedestrians are in danger every time a van goes out on the road.

But now the emerging technology of telematics is using data to make driving safer and more efficient for the thousands of people who drive for a living. The idea is simple: use GPS and onboard sensors onboard to collect data that makes the operation of a fleet safer, reducing journey times and helping drivers avoid collisions. Data analytics, for instance, could reveal sections of road where the chance of a crash is highest and instruct drivers to avoid them. Likewise, telematics could help drivers adjust their routes so that they deliver parcels in the most efficient manner possible.

Customer Value Modelling

Do you know how much a particular customer if worth to your business over the lifetime of your relationship with them? Chances are that you don’t. And even if you wanted to find out, it would be hard for you to come up with anything other than a pure “guess-timate.” With machine learning, however, you can feed all of the data you’ve already collected into software and then get the algorithms to tell you how much they think a prospect is worth.

It’s not a perfect system, but you can imagine the advantages. All of a sudden, you have a tool that can tell you whether it’s worth investing in a sale or not. For the first time, you can perform a rational calculation to work out whether your effort is worth it.

Dynamic Pricing

Dynamic pricing means changing the price over time. But why is this beneficial? Well, you can imagine situations in which customers are prepared to pay for more for a product, based on the weather, what’s going on in the news, and what’s in fashion. Dynamic pricing helps you collect “consumer surplus” or the extra money people are willing to pay.

Staff Writer; Sherry Jones

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