What is Data?
Simply put, data consists of any and all facts, statistics, and informational inputs collected during your operations that can be used to measure or record both internal and external business activities. Businesses of all sizes can collect data. With as little as a website and a social media presence, even a one-person shop can collect data on its customers, user experience, feedback, demographics, and web traffic. This means that even the smallest business can have a data collection mechanism which they use to hone their products and/or services and drive profitability. In effect, every business, regardless of size, now needs to be a data business. However, in today’s information age there is such a vast wealth of data available that companies run the risk of collecting too much. It’s therefore imperative that businesses develop a robust data strategy to guide them in harnessing it.
What Makes a Good Data Strategy?
How Can Data Impact My Business?
The key impact that data has on your business is that it informs and improves your decision-making. According to a study by Bain & Company that looked at more than 400 organisations, companies with advanced data analytics capabilities were five times as likely to make decisions faster than market peers. Customers are important because they drive revenues – without them, businesses amount to nothing. Data plays a huge role in understanding valuable insights about target demographics, customer preferences, and customer experiences. It leads to a better understanding of your customers, generating insights backed up by factual data in lieu of any assumptions you may make about who they are, their preferences, behaviours, and more. If analyzed correctly, companies can leverage these insights to make decisions about finding new customers, increasing customer retention, improving customer service and experience, iterating marketing efforts, tracking social media interaction, and predicting sales trends.