The digital revolution has transformed how we receive, send, store, and process data. Firms, both large and small, can easily afford any of the efficient, inexpensive and simple advanced analytics software through which you can store critical client and market data.
There’s no doubt that data is the least utilized asset in most companies globally. Asian firms lead in data utilization for profits at 63% followed by the US and Europe and 56% and 53%, respectively.
These numbers drop significantly when you interview those who run mid-sized firms across the globe. There are a number of ways these SMEs can utilize data to make profits.
Use Data To Improve Operations.
Lots of data captured through back office operations can help you identify key strengths, weaknesses, staffing issues, resource waste and quirks that would improve sales. The best means of utilizing such data is to create a dashboard that reflects requisite metrics in line with your industry and business. Through this, you will be able to make a better decision on resource allocation, how to cut expenses, and streamlining coordination between departments and suppliers. Some of the critical facets that this data helps you establish are the gaps in your operations, and how they impact your overall output.
Share Visibility with Your Clients.
Lots of modern day customers want to know how the firm is operating. Therefore by being able to avail proper data, you will lay out the company’s structure, operations, and aspirations in ways that will increase the brands value. The data captured enables you to understand how firms interact with your company, how they learned about it, and what kind of information they seek. This allows you understand how to push out information that serves both transparency and marketing purposes. This is in turn fuels brand loyalty and reach.
Use it To Understand Markets.
Scouring through data and using it as input to advanced analytics can help you identify market gaps and take advantage of them before they become known. It can also help you discover underserved markets and changing market expectations. The business world has become so fast-paced that markets appear and disappear in such short cycles. Available data is one of the most critical resources needed to figure out where the market is, it’s probable size, what the market demands, and how well you can successfully enter or exit that market.
Sell The Data.
One of the simplest ways of taking advantage of advanced analytics is to turn it over to firms that need the data – for a fee. In as much as this raises the issue of data confidentiality, there is lots of open data that can be utilized without a breach of privacy. Many major firms seek to buy data about particular trends, habits, people groups, or markets, and they would willingly pay a dime for any credible data. This could work really well when your systems are able to capture data that is not necessarily usable internally.
Most often, raw data tends to be messy, jumbled up, and for the most part unusable. Keep in mind that lots of firms neither have the requisite advanced analytics software nor the expertise to generate credible metrics for decision-making from this data. That’s why one of the most profitable ways of utilizing data is teaching people how to convert data into analytics. You can provide the advanced analytics software or the skills needed to turn the messy records into readable and actionable information ready for utilization by firms. This works well for simple analytics like social media and consumer analytics.
Use Data To Plan Product Campaigns.
Consumer insights are some of the most critical data a firm can have. Collecting the data on what consumers buy, when they buy it, and how often, can give insights into how they think. It’s even better if you have data on spending per client, peak seasons, age, gender, and geographical distribution of the customers. This will help you to plan new product launches from an informed perspective, which in turn raises the possibility of success. This could mean practical steps like calling, texting, or emailing the clients about the new product or requesting them to beta test it before a public launch.
Conclusions. The increasingly competitive nature of the business environment necessitates the need for reliance on advanced analytics to drive revenue and profits. Any firm doing business blindly is living on borrowed time. The best part about it is that most of the needed data is readily available or can be cheaply sourced.