Why are domestic Internet companies doing big data?

The biggest difference between Internet companies and traditional companies is the different customer base. Traditional companies are more inclined to do the mass of the product line, basically to include all kinds of people can be reached, by expanding the original customer base to enhance the transaction volume. The Internet company, regardless of the line of business, they basically do not need to consider the number of customers can be reached, on the contrary, how to pinpoint from these large numbers of customers with the intention of purchasing customers is the key, so the need to filter judgment through big data, so that through the small cost of accurate snipers target customers to reach a higher volume of transactions.

Simply use a formula to express:

Transaction volume = number of customer groups * volume

Traditional companies to enhance the number of customer groups, while the Internet company to enhance the volume.

Traditional company physical operation, each place foot traffic is roughly fixed, at the same time can accommodate a fixed number of stores. Expanding one's radiance and attracting more people into the store is the root of competition.

Internet companies do not need to consider the factor of customer radiance, because the network of customers is almost unlimited, but the number of competitors is also huge. In this environment, accurately find out the most compatible with their own at the same time can be distinguished from other rivals of the customer base, is undoubtedly the key to survive.