Forget big data, look at small data for better business decisions

While many companies rely on the so-called big data they collect from the internet, they may not make the best business decisions if they do not heed the small data on customer behaviour, warns a brand expert.

“Everybody is using big data to make business development decisions. This has resulted in many businesses making similar decisions as they reach similar conclusions using the same data. But in fact, they may make the wrong bets if they forget to also look at the small data analysis of consumer behaviour,” said branding expert Martin Lindstrom.

Speaking at the 7th Asian Leadership Conference, of which the South China Morning Post is a media partner, Lindstrom said many companies use big data analysis to determine business strategy.

He said while big data may be useful, it may not give a company the full picture it needs. Small data analysis, which does not only rely on a large volume of data but also uses a more structured analysis to find out why customers behave the way they do, is more important.

He cited the example of the big-data finding that women now spend 23 minutes more every morning to prepare themselves before going out. The reason, he said, is because many women take 16 to 17 selfies every morning and post on Facebook or other social media before stepping out.

“This shows the new generation of women like to have recognition with friends. They want to join the peers.”