They say the only thing that is inevitable is change. That’s true. Technology continuously evolves, business processes need to adapt to get rid of redundant procedures, and trends come and go. You are also at this point wherein data is among the most important assets in your company and one of the keys to boost your competitive advantage over the others. In fact, if you want to boost your business productivity, then you need to maximize the amount of data getting in your system.
This is where Data and Analytics Strategy comes in. Every business must have a data analytics strategy if you want to stay competitive and relevant in the market.
The question is why? Here’s why:
You Need To Manage Your Incoming Data
You may not notice it, but your company receives voluminous data every day, which can be overwhelming. Although some may not be useful, there are information in the system that will be beneficial to keep your company afloat.
Having a Data and Analytics Strategy allows you to not only collect data but also keep it organized, well-managed, and classified according to its nature. This will make it easier for you to find what you need and makes sure that data will be used and processed to your advantage. Otherwise, you will be stuck with piles of data and you won’t even know what to do with it.
Since you need to manage data, make sure you have data backup strategy as well. This way, you are sure that no matter what happens, especially in case of the cyber-attacks, your business data is protected.
Develop Sound And Smart Business Decisions And Strategies
Your gut is always right, but if you are a business owner, this will never be enough. You need data to back you up as to why you came up with that strategy or decision – and having data and analytics strategy will assist you on that.
Keep in mind that every business has a specific set of goals to achieve. You will be able to do so with the help of data collected and managed. Data will tell you how the business is doing, what areas or department needs improvement, pinpoint performance breakdowns, and identify employees’ performances among others.
Knowing the performance and internal affairs of the company, with the help of data, will tell you where you could focus on, what marketing strategies you should drop, and ensure improvement within the company.
Better Advertising Techniques
Advertising plays a major role in the profitability of your business. As a business owner, you need to allocate a specific budget on this to make sure people will know and remember you.
Apparently, not all advertising strategies will work. The question now is which among the employed strategies are less effective than the others?
This is the purpose of having Data and Analytics Strategy. You can easily pinpoint what advertising strategies are working and responded well by customers, which you can maximize to your advantage. Consequently, drop strategies that are not giving you enough return. Use data analytics strategy to start thinking of other ways to advertise your product or service for maximum effects and return. You will be able to save more because you identified strategies that don’t work.
Make Inventory Work To Your Advantage
Surely, you want to offer as many products to customers for variety. You fill your warehouse with tons of products to ensure that your customers will have choices. Apparently, is it effective?
On the other hand, you don’t want to reduce your inventory and offer one product only. This could translate to the loss in sales and customers, which you don’t want to happen.
What do you do? Look into you data to help you focus on the right assortment of products without taking too much space in the warehouse. Data will tell your customers’ buying patterns and behaviors, as well as what items are saleable than the others. You are able to reduce inventory cost and space but still maximize profit.
Ability To Meet Customer Expectations
Every customer is different. Some prefer buying a chocolate cake but a good number of people are willing to spend more money on your specialty, never-before-heard cake combinations. Despite the differences in their preferences, one thing is for sure: each of them wants satisfaction.
The good news is having a data analytics strategy allows you to meet those customer expectations. Data analytics reveal customer behavior, buying patterns, peak shopping hours, and saleable items. Don’t take for granted the comments and feedback left on your social media pages because you could use these to improve the seller-customer relationship.
That’s not all. Data analytics strategy allows you to personalize your interaction with customers using their past transactions and information submitted to your database. In case they signed up for a mailing list or text blast, make sure you address them by name. Customers appreciate business owners who call them by name because it makes the message more personal.
Data and analytics strategy might be overwhelming at first. Take time to read and learn more about it to give your business a competitive edge.
Susan Ranford is an expert on career coaching, business advice, and workplace rights. She has written for New York Jobs, IAmWire, and ZipJob. In her blogging and writing, she seeks to shed light on issues related to employment, business, and finance to help others understand different industries and find the right job fit for them - Strategics360