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Around 67% of small businesses are spending an average of $10,000 on analytics, according to Onepath. Being able to adapt to trends and new technologies is a must for businesses. With the world taking on a more digital feel, harnessing and understanding data is crucial.
Here are a few good reasons why data is crucial for your business
Better Decision Making
Slow decision-making can end up crippling an enterprise, according to AI Multiple. While opinion-based decisions can provide fast solutions, these may be of low quality. Data-driven decisions are formed based on actual data instead of opinions, shallow observations, and intuition. What you should determine when gathering data is the purity and accuracy of the data source. Having data can give you an opportunity to draw informed conclusions and build better processes moving forward. Most importantly, data-driven decisions can help you formulate your business’s true purpose. Consumers are four to six times more likely to patronize a business that is purpose-driven, according to Zeno Group.
Understanding Consumer Behavior
Your business must be able to navigate changing consumer tastes. For example, 75% of consumers in America have tried a new brand or a different way of shopping in the past year, according to McKinsey & Company. Experts at Tryane explain that your business must be transparent, responsible, and accountable if it is to survive and attract clients. Data analysis can help you achieve this by helping you understand which of your products or services are in demand and which aren’t so you can tweak them as needed. It will also help you understand how to best draw in consumers and how to engage them successfully through different platforms. Using data analytics can lessen the risk of mistakes and damaging consumer trust. The data you obtain about consumer behaviors gives your business an edge over your competition.
Productivity within your ranks is a crucial variable in your business’s survival and success. To improve it, you must be able to measure its strengths and weaknesses. A good way to do that is through gathering and analyzing data. While that may sound like it will take time, you can make use of productivity tracking software and time tracking platforms so you can have accurate and real-time reports from your employees. You can also use data you’ve gathered about productivity as a springboard for better in-house communication. Getting your employees’ input on how you can further improve your processes can ultimately improve productivity, making it a growth cycle your business can benefit from.
Data is crucial and can help shape your business into one that is more streamlined, accessible, and communicative. There are a lot of different platforms and services that can help you better gather and analyze data. It would be wise for you to do your research and try them out so you can determine which one works best for you and your enterprise. That way, you can rack up more experience on how to handle data and obtain the many benefits it can yield you. If you want to take it up a notch, you can also upskill some of your employees and let them take the best data science course that you can find on the internet.