By Shazia Manus
The hype about big data can distort our view of the arguably more important small data —powerful information capable of delivering real-time insights.
Big data is dynamic, but small data contains the real information — the traces of consumer behavior left behind by actions taken every second of every day. Financial institutions that want to succeed in the big data revolution may want to begin by getting their small data house in order.
If institutions understand the challenges and aspirations of consumers, mundane consumer tasks can be transformed into highly memorable moments. Below, you’ll find actionable steps to help you develop a plan and execute it accordingly.
Prioritize the right capabilities to power big and small data strategies.
Financial institution leaders may find more meaningful action is possible through small data than with big data. Every login, click and download generates small data that can be used to create extremely personalized experiences.
Additionally, financial institutions should consider the crucial consumer pain points they need to address and how they can use small data to alleviate those pain points. The key is to build a culture of data-driven strategy by starting with the high-value, low-difficulty problems. Take one problem at a time, master it, and then move on.
Enable faster business decisions by utilizing data.
Beyond providing the means for personalized service, small data can also help executives make business decisions more quickly, immediately impacting revenue.
For example, restaurateur Lindsey Hiken insists on digitizing each vendor receipt, which many competitors don’t do. The process gathers raw data into a database that flags price changes in real time. This allows Hiken to make immediate adjustments, such as switching out an ingredient when the price gets too high.
“This is the difference between a business that generates data and a business that strives to be data-driven, where the data becomes part of the decision making,” said big data analyst Allen Bonde.
Run big and small data plans simultaneously.
Financial institutions will want to begin positioning themselves today for enhanced big data capabilities tomorrow by focusing on ways big and small data can work in concert.
TMG client Partners Federal Credit Union just assembled an internal data team to focus on the compounding importance of data. Because the credit union services the employees of The Walt Disney Companies, who are accustomed to exceptional experiences, data-driven insights are critical.
Led by a chief data and analytics officer, this team will be responsible for the data lifecycle and management inside the credit union.
Financial institutions working on their big data plans have to know where they are headed, what they want to achieve and how the data they collect will deliver the insights they need to produce high-value products, services, and consumer experiences. So, what will you do with those data insights, both big and small?
Shazia Manus is president and CEO of TMG Financial Services, Des Moines, Iowa.