Running a business isn’t about staying with the pack; it's about getting ahead of the curve.
If you’re constantly improving, engaging with your target audience, and boosting your brand’s look and expectations, you’re on the right track. However, this is only the start of getting your business to truly stand out. To do that, you'll need something more. You'll need to use synthetic data.
Synthetic data is redefining the business world. Using synthesized data makes it significantly easier to understand your client base, gather necessary intel, produce solid AI programs, and deliver a fantastic repertoire to consumers. It’s also relatively easy to set up and use.
So how will synthetic data improve your business endeavors? This article will give you an in-depth look at synthetic data generation, how it works, and why you need to incorporate it into your business.
What is synthetic data?
You may have heard the term thrown around, but many still don't understand this relatively recent concept. Knowing its definition will boost your go-to-market strategy and create new ways for your company to thrive.
Synthetic data is data generated to meet certain needs or conditions not found in original data and are often produced to represent real data. Organizations will often use synthetic data to protect the confidentiality of real data.
Why is synthetic data necessary?
Synthetic data is necessary as business models have started to prioritize anonymity. Of course, all modern businesses rely on statistical reports that are based on target clientele, in order to understand the company’s strengths, areas for improvement, and opportunities for re-haul. That business need won't ever change.
However, consumers care more about privacy than ever before. No one likes the idea of having their information accessed, especially if businesses freely obtain it without their consent. Some data protection measures, such as restricted and anonymized data reports, were good steps in the right direction, but they simply weren't enough.
Certain data reporting measures focused on keeping individual data private still weren’t able guarantee full privacy of the people whose data was being used. In some cases, you could confirm the characteristics of an individual, and in rare conditions, it was possible to even determine the specific person. Because companies were still using direct data from real customers, it wasn’t completely secure.
It's clear to see how the means of data collection created a rift between clients and businesses. However, data is incredibly valuable for companies to generate the best course of action for their business. Thus, synthetic data generation was born.
How does synthetic data work?
With synthetic data, privacy is kept at a maximum. The beauty behind a synthetic dataset is that a company can gain all the data it needs to produce results - without gathering data at all.
Synthetic data's strong emphasis on privacy allows companies to create powerful data that can be used for marketing purposes — without tampering with live consumer data. This is made possible through pre-created data measurements that produce artificial results.
With a generalized statistical approach, companies can gauge data use based on consumers behavior within a specific industry or niche. Data analysts can create generalized data from aggregated information such as the average buyers' age, income, and buying habits, as well as how they interacted with the business.
Keep in mind that this data is not only limited in scope but also has a limited accuracy time frame. Statistics change all the time, especially when it comes to general data in your field. Relying on such means alone for an extended amount of time will eventually leave you working with inaccurate or expired data. It won’t represent the scope very well, which is a main reason businesses use direct data in the first place.
Here's where the magic happens. To use synthetic data, analysts will take gathered generalized statistics and — with the help of artificial intelligence — generate a series of new data points that are an accurate scope of approximations. Modern AI technology can help make data from scratch that depicts the state of your business and your industry, all from general statistics alone.
Why is synthetic data valuable?
Synthetic data is a groundbreaking achievement in the means of acquiring data, as it allows you to generate impressive results in real time while maintaining privacy for customers.
There are endless reasons synthesized data is a valuable aspect of technology to incorporate into your business. However, there are a few core reasons you should use the data generation solution in your company.
You gain the trust of your audience
As we've previously discussed, businesses are learning how to respect consumer privacy. In the past, before broad awareness of data usage, many companies took advantage of the data people gave as they browsed the web. Analysts would study the sites these users visited, the types of pages they viewed and took action on, and even the products they bought.
By simply taking this data from unwary users, companies tailored their branding, targets, and sales models after these users to drive sales. Soon enough, however, privacy activists educated consumers on these practices, and companies lost the trust of their customers.
By using synthetic data generation, you gain the loyalty of modern consumers by never taking their private information or exposing their data to fuel your financial gains. In a world where trust is hard to fine, this bit of information would ring beautifully in the ears of your potential clients.
Ease of access to the data you need
The ease of access to data collection is perhaps the biggest reason you should use synthetic data. Legislation, consumer demands, and privacy-protecting software companies have worked hard to create a more protective atmosphere to minimize tracking and data-napping. If your company relies on taking data from customers and prospects, your data pool is also limited, which makes it tougher to generate the information you need.
With synthetic data generation, you don't have to worry about a shrinking pool of statistical data, because you create your own data. By simply gathering generalized, non-personal data, and using efficient artificial intelligence measures, you will have infinite access to the information you need to generate company leads and grow your business.
You save big on expenses
One final factor you'll want to consider is how much synthetic data generation can save you in costs. Given the changes we highlighted earlier, it’s now harder than ever to gather data, and also more expensive.
Many big tycoons like Google or Facebook can gather market research information because they have the finances to spare. Your company may not have that same luxury.
Trying to gather market research information from consumers directly can be incredibly expensive, and even secondary research can be moderately expensive and not as effective.
With synthesized data, you get the best of all worlds. Because you’re not gathering specific data in the first place, synthetic data generation is the most affordable way to collect the information you need. You’ll still need to allocate budget for general data statistics and the actual use of artificial technology needed to produce results, but it’s a more modest line item.
Now is the time for synthetic data
We believe synthetic data is the way of the future and getting on board now will place your company well ahead of the competition. With unlimited access to powerful technology combined with privacy measures in place — to protect both the public and your company — you can't lose with this new wave of data collection.
There are several different ways you can get started with synthetic learning, especially in the data, sales, and marketing sectors. Your data team can create generated statistical data in mere moments, saving you significant budget while generating the results that will help you get out, get ahead, and gain leadership your industry.
There's no better time than the present. Invest in synthetic data generation and watch your company soar to new heights you’ve never seen before.