Being data-centric must be the heart of your business if you want to take it to the next level. The biggest problem is that many small business owners don’t know where to start. The key to unveiling the full potential of data is data analysis. The top companies around the world are using analytics to improve the overall operation of their business.
Data analytics is a disruptive technology that has completely changed the landscape of business today. It enables faster, more accurate decisions by providing access to real evidence.
Businesses that are data-centric gain a significant advantage. They understand the value that the data holds. Data-centric businesses make data a normal part of their strategy, so it ends up becoming embedded into everything they do. Companies that do this are going to be taken to the next level.
Businesses Gain Some Huge Benefits When they Become Data-Centric
First and foremost, data analytics helps businesses set better goals. One of the biggest issues in small businesses is that they are not focusing on the right things. The market changes so rapidly that if your business is not using data, then you’ll likely be working towards the wrong goals.
The main benefit that data-centric businesses is they treat data like the precious commodity that it is. Therefore, they make it a number one priority, so they are always looking for ways to streamline it into their systems. More importantly, they develop methods of ensuring their accuracy.
Finally, businesses that emphasize data tend to develop better systems for gathering it. Another area where a lot of small businesses struggle is that they do not have the right collection methods in place. Or worse, they are gathering the wrong data. Companies that create their business model around using data are going to develop gathering methods naturally.
If you want to raise your business to the next level, then start developing a business model that incorporates analytics. Make it a part of the culture of your company.
Now let’s look at some ways that you can take data analytics to the next level.
Data Makes it Easier to Segment your Customers
Segmentation is the process of categorizing customers into smaller, more focused categories. For example, you might have a segment of customers who are of a specific age. Grouping data, together like this, allows for more focused marketing campaigns. This is a marketing practice that has been used for decades. What makes it different now is that data provides us with ways to narrow these categories even further. Instead of wide ranges of age groups, today we could have an age group that uses a specific type of product.
Segmented lists can have marketing campaigns tailored to them, and as a result, they generally perform better. I’ve seen some segmented marketing campaigns with shocking ROIs!
Data Analytics Promotes the Development of New Products
To remain competitive in a customer-driven market, businesses must create products that are centered on their customers. Data analytics makes this process so much easier because it gives you access to important information about problems that your ideal customers might be dealing with. Therefore, you can create new products or services that are designed to help relieve them of those problems.
Furthermore, you will have access to customer feedback, which can be used to improve current products. For instance, if customers are complaining about a feature with a product, then you can take steps to fix it or eliminate it when you release a new version.
Netflix and Amazon are two huge companies that make the most out of customer feedback like this. Netflix uses its massive archives of data to develop better television shows. It’s the main reason why they have achieved such a high level of success. Amazon also uses this data but in a different way. Instead of creating new products, they use browsing and purchase history to recommend other similar products.
Businesses Must be Agile in This Fast-Paced Market
Businesses that are not properly utilizing data are finding it more difficult to get customers, so they end up channeling a majority of their efforts into keeping their existing ones. This causes them to experience a drop in profits over time because they are not funneling in enough new customers.
Another problem with this model is that customers are always on the look for new products and services that suit their individual needs. That means your competitors who are using data analytics could come in and take those customers away from you.
Data-centric businesses are much more agile, so they have a much easier time adapting to an ever-changing market. Customers’ needs are going to change, so your business needs to be able to make adjustments to your products and services to meet new demands.
Data Analytics is a Disruptive Technology
Disruptive technologies are those who are capable of changing the current landscape. Businesses that properly use data analytics are shattering markets and have been disrupting entire industries. Again, look at how Netflix completely changed the movie industry. Businesses that did not adapt are now obsolete.
Uber is another business that has used data to change the landscape of travel services. It was founded by using data analysis to identify demand in the market and then creating a service that met that demand.
All business of any size and model can use data to take their business to the next level. So start developing your business practices around data and create the brand you’ve always dreamed of.
What’s the Next Step?
Start with marketing. If you’re not already using data to efficiently market to your customers, then you need to make the change today. If you’re unsure where to start, you should consider bringing in a research expert like the Research Optimus Company to help you get the ball rolling. The fact is that businesses that don’t become data-centric are going to struggle to stay relevant.