5 Ways Any Small Business Can Benefit From Data Analytics
By TJ Lundeen / email@example.com
For small businesses, gathering and analyzing data is an action that has been far too costly, complex, and time consuming to merit a serious investment. There are more than 30 million small businesses in the U.S., but nearly 60 percent say they lack the skills to implement a data analytics solution into their business strategy.
With no strategy involving data analytics, small businesses miss out on valuable information about their customers, operations, and competitors that can lead to increased revenue and better market position.
In recent years, more low-cost, budget-friendly solutions and a focus on smaller businesses have made data analytics an option that can be employed by any size business. In fact, small businesses have an advantage in the data analytics process, as they are more flexible to make changes based on trends in data, enjoy a much faster speed to market, and can foster closer relationships with customers.
For small businesses, data can unlock insights in these five areas, which can lead to increased sales, customer loyalty, and improved operations.
Spot trends in the market
- The easiest way to be ahead of the curve is to know what’s coming next.
- Measuring factors like the time of year, weather, or the current and future economic state along with monitoring online interactions can bring an information flow to know how and why demand will change.
Learn about your customers
- Proper data analytics unlocks crucial information about how your customers shop, including information about what they buy, what they’re in the market for but haven’t purchased, and what reasons they do or do not recommend your business.
- Customer feedback surveys, social media, and online forums can aid in finding this information, which can be utilized to transform the customer experience.
Understand your competition
- Monitoring what your competitors are doing well and where they are struggling can give your business an advantage in marketing and sales.
- Using online resources can generate information on the popularity of products and brands, while an analysis of social media can show how your competitor is performing at the customer level.
Ensure operational effectiveness
- Optimizing operations within your organization is an easy way to save money and time, while performing tasks at an improved rate.
- Any business process that generates data can be improved – from manufacturing machinery to retail stocking information and supply chain management.
Improve on the past
- Utilizing data from previous years can help identify long-term growth or regression and effectiveness in sales and marketing strategies.
- With more data being created everyday, a look to the past can provide a snapshot of where your business has performed well and where focus needs to be shifted.