Big Data has become a buzzword in the business world in recent years. However, this is more than just a passing fad; big data is the future.
ContentsBetter Systems and Project ManagementUnderstanding Customer BehaviorDescribing Hidden Obstacles and OpportunitiesBetter Understanding the CompetitionAccurate Forecasting and Future PlanningWhy Data Analytics Creates Successful EntrepreneursEntrepreneurs are no stranger to building something from scratch and working with what is available to them, then refining the process later. It's time to rethink that strategy and start using data from day one.
Here's how entrepreneurs can use data analytics to succeed.
Using statistical data and analysis helps create more efficient work systems and processes. In other words, an entrepreneur who uses data will be better able to identify and eliminate waste while highlighting opportunities for improvement.
Analyzing statistics and data is nothing new in the business world. It's one of the founding principles of the highly regarded Six Sigma methodology, with introductory coverage as early as the White Belt Lean Six Sigma program. Entrepreneurs can use this approach to improve systems and processes within the business, ultimately improving results.
Improving processes within the company ultimately leads to better overall efficiency and profitability.
AI and machine learning have created an incredible opportunity to capture data on customer behaviors. This insight into consumer behavior presents opportunities for impactful upselling and cross-selling campaigns. With this information, you can create individual, targeted campaigns that highlight product offerings that go well with browsing or purchase history.
Using tools to hyper-segment customers and better understand their motivations helps clarify the overall customer experience.
For example, high-level analytics can show how many customers are bouncing rather than making transactions on your e-commerce site. Further analysis might show you a link between bounce rates and load time on your transaction page. Digging deeper could identify a link between bottleneck traffic to your loading page, especially during peak hours. Using this data, you determine that the best way forward is to invest in better bandwidth before the holidays.
When it comes to running a business, you don't know what you don't know. Data analysis can highlight hidden obstacles and opportunities.
The above example of website bottlenecks is a great example of a hidden barrier. For another example, consider the factors affecting sales in a restaurant. Unexpected indicators, such as the weather, could be a potential obstacle to achieving sales goals. You may find that your clientele doesn't want to leave the house on a rainy day. Creating a marketing piece for rainy days might help curb their behavior.
Diving deep into your analytics can also highlight a potential market you haven't explored yet. Your target demographic may be women between the ages of 18 and 34, but you're discovering a small but engaged segment of men between the ages of 25 and 40. This insight into the data shows an opportunity to personalize offers and tailor marketing campaigns to this group.
Performing a SWOT analysis is an integral first step to entering a market, but what comes next? Data analysis can help an entrepreneur better understand the competition and the industry as a whole. Understanding data on what competitors are offering, what they are doing well, and where they are failing can help entrepreneurs create a strategy based on these metrics.
The more data you have about the past, the more accurate your strategies for the future. Data analytics helps entrepreneurs make data-driven decisions and prepare to identify future needs, trends, and financial needs.
Essentially, data analytics provides the framework for creating invaluable insights that entrepreneurs can use to drive their business forward. This data will help them weather lean times, strategically grow the business, make processes more efficient and profitable, and become more accurate in all areas.
