The lowdown on little data
Big data can be a big fuss.
The term used to describe the collection and analysis of massive amounts of information in the hope of learning what we don’t already know, big data can provide deep customer insights, more targeted communications and improved operational efficiencies.
Big data also has a big drawback
It’s expensive to collect and often requires a significant investment in the software and hardware needed to analyse, manage and store it.
Big data is generally unstructured, which makes it hard to interpret using traditional databases and it usually involves a lot of text – think social media posts and video footage. The volume, variety and speed at which big data is generated can also be challenging to handle.
Meet little data
Now more and more businesses are turning to big data’s more manageable cousin, little data, as a means of providing relevant and beneficial insights.
Little data refers to information about individuals that’s now easier to gather through mobile and social technology. It’s a marketer’s dream. It involves tracking and analysing our lives – what we buy, where we buy it and what we like to do for fun.
“It’s personal,” says Michael Pain, analytics lead with Accenture Australia.
“Little data is quite granular – it provides a very detailed view of something, such as web clicks. It provides very actionable, insightful information.”
Sources of little data
Little data can be collected from many sources, such as credit cards data, smart phones and clickstreams. Some people also volunteer their own little data through online surveys and membership forms.
While big data is controlled by companies, little data rests with the individual. It can help us monitor and achieve our own goals.
Mobile health devices, such as Fitbits, the wristbands that monitor and record fitness-related metrics, are a good example.
Little data can also be used to generate shopping lists based on recent grocery purchases or to ensure that special promotions matching your interests are delivered to your inbox.
“People want more things to be personalised these days so you need little data to make this happen,” adds Pain.
“Organisations assimilate data from all their sources and deliver a personalised experience that leverages a person’s little data. Insurance and banking sectors, for example, are tailoring products
to needs based on little data.”
Written by Susan Muldowney for AIM Magazine
