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October 27-29

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How Companies Use Big Data to Make Business Decisions

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How Companies Use Big Data to Make Business Decisions

April 16, 2025April 16, 2025 Gibson JohnOur Blog

Big data is a term used to describe large amounts of information that companies collect. In 2025, many businesses use this information to decide how to improve their work. Big data helps them understand customers, find patterns, and plan better. Even industries like a casino not on GamStop use data to study user behavior and build safer systems. Let’s explore how businesses make decisions using this tool.

Collecting the Right Information

The first step is gathering data. Companies collect it from many places — websites, apps, social media, and online purchases. Some stores use loyalty cards to see what you buy. Some websites track what you click. This data is saved and studied. Businesses don’t look at single customers. They study large groups to see common habits. This helps them understand what people want, when they buy, and what products are popular.

Understanding Customer Needs

When a company knows what you like, it can offer better service. For example, if many people search for green shoes, a shoe company may make more of them. Online shops show you items based on what others with similar interests bought. This saves time and helps you find what you may want faster. Companies also use data to improve apps or websites if they see people are leaving quickly. It’s all about giving you what works best.

Improving Products and Services

Big data helps businesses see which products work and which don’t. For example, if customers often return one item, it may have a problem. A food delivery app can check which meals are ordered most and which ones get low reviews. That way, they can suggest better menu options. Even small businesses can now use data tools to learn what items are selling. This helps save money by avoiding waste or unsold items.

Planning for the Future

Data is not only for today — it helps companies plan tomorrow. By looking at past trends, they can guess what might happen next. For instance, if many people bought coats in October the last three years, a store may get more stock early. This way, they are ready before demand grows. Transport services use data to plan routes where more people travel. Good planning can save time and money for both the business and the customer.

Checking Performance in Real Time

Some companies use dashboards to watch data live. These screens show sales, website visits, or customer issues happening at the moment. This helps managers act fast. If a website has a problem, the tech team sees it quickly and can fix it. Or if many people are buying one product, the company can prepare to restock it. Watching data live gives them control and allows better decision-making every hour of the day.

Supporting Marketing Strategies

Big data also helps with ads. Instead of guessing who might like a product, companies use data to target specific groups. For example, if someone looks at smartphones often, they might see more tech ads online. Email offers are also based on your past clicks or searches. This way, ads feel more personal. It’s not random — it’s based on behavior. Companies want to spend money where it matters most, and data helps them do that.

Making Customer Service Better

When you talk to a support agent or chatbot, your past data may be used to help. The system might already know your order or issue. This makes solving the problem faster. Some apps also use data to show you helpful articles or suggest a solution before you even ask. Companies also track how long it takes to fix a problem, so they can train staff better. The goal is to make your contact with support as smooth as possible.

Reducing Risk and Fraud

Big data is also useful for spotting danger. Banks and online stores use it to look for strange behavior. If someone logs in from a far-away country or tries to make many quick purchases, the system can block the account or send a warning. Insurance companies use data to check which areas have more claims and why. This helps reduce fake reports and protect honest customers. It’s one more way data helps companies protect both themselves and you.

Helping Companies Stay Competitive

In today’s fast-changing world, being slow to act can hurt a business. Big data gives companies the chance to respond quickly. If they see that a competitor is doing better, they can check why and try something new. If a trend is rising, they can follow it in time. Even new companies can compete better when they use data to find gaps in the market. It’s not just about being big — it’s about being smart with information.

Big Data and Ethics

While data is useful, it must be used carefully. Some customers worry about how much data is being collected. Good companies are open about what they collect and why. In many countries, there are rules about keeping data safe. Businesses must protect your details and not sell them without permission. Being honest and careful with data builds trust. This is important for long-term success in any business.

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