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Data is power in this current information era. Businesses that make good use of data, according to Keboola, are 23 times more likely to find customers. They also increase profits by 8 percent. You can and should use data to operate, strategize, and grow, not to mention remain competitive.
But isn’t data analytics for enterprise-level companies with massive budgets? Not necessarily. Small or medium-sized operations can use it too – perhaps not on the same scale, but enough to make informed decisions and derive better results. This applies to every business function, from product development and operations to sales and marketing.
In this mini-guide, we explain how you could potentially use data analytics in various ways for superior results.
Customer acquisition and retention
Gathering customer data can assist in acquiring new customers faster and retaining existing ones better. How? With data, you can better understand your customer – their purchase choices, the parameters that influence purchases, their preferred shopping medium, and likes and dislikes. With this information, you can better meet their needs. Furthermore, it gives you an idea of how to draw in similar new customers.
Marketing campaigns and branding
Data can be used to create more targeted, refined marketing campaigns. This includes data about your customers as well as market data, financial data, and data from the successes (and failures) of previous marketing campaigns. For instance, customers may respond better to marketing messages accompanied by modern symbols or colors. There’s a reason why major brands change logos – brand fatigue is real, reports Barry W. Enderwick.
For your next marketing campaign, you could refresh your logo (or make one if you don’t have one already), then collect data about your results. You could create your own logo, instead of paying a graphic designer. Many online logo makers support business logo design. You just need to choose a template, adjust fonts and colors, pick a style, add an icon, and type in the text. It can be appealing and creative.
Risk management is a huge part of every business owner’s work and success. Countless internal and external factors could potentially derail your business. With data, you can identify the biggest threats and steer your way around them. You could also keep tabs on them, long-term, to ensure they don’t throw a wrench in the works.
There are multiple ways data assists product-development-related efforts. User-experience insights allow you to design better, more likable products. You can better determine the viability of products. You can make more informed decisions about your budget. Essentially, with data, you can minimize risk and maximize gains.
Data can help you better manage your employees, not to mention make recruitment-related decisions. Some ways companies are using data for talent management are measuring employee performance, understanding attrition, increasing retention, and making salary and promotion-related decisions.
But how do I collect data?
The ideal methods will depend on your business and the type of data being collected (yes, there are different types). If you want to collect customer data, for example, some suggestions include talking to customers directly or indirectly monitoring their activity. Commonly used strategies are monitoring social media, launching surveys, interviewing, website and app tracking, and using CMS software. Research best practices for collecting other types of data.
Bigger companies make data analytics teams, composed mainly of data scientists and researchers. They’re responsible for collecting and feeding critical data to the business. You may not have a budget for creating a similar setup. What you can do, though, is create a data strategy focused on collecting data that’s most critical to your business – say customer behavior. Then, implement it using the resources you do have. You can refine as you go, and invest more resources into data later if you get good results.
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