How Data Can Be Transformative for Your Business

Data is no longer just a resource that people use, it’s the lifeblood of growth, innovation and putting your business ahead of the competition.It doesn’t matter whether you’re running a startup, an ecommerce site, or you have a multinational operation out there. 

The ability to interpret the information that you have gathered and then act on it can be the defining factor between thriving and surviving. But what does it mean for your business to be data-driven? And how could even small businesses use data to make smart moves and bigger leaps? Let’s talk about how data can be transformative for your business.

1. You can make better decisions when you use data-driven decisions. You’re making decisions based on facts. With the right data in hand, you can forget your gut feelings because you can see tangible information in the palm of your hand. Your decisions will be based on hard evidence rather than assumptions, and instead of guessing what product will sell or which service is most popular, data will give you the answers that you need. Website traffic data can show you where your visitors drop off, and customer feedback data tells you what they love and what needs improvement. Paying attention to this kind of data allows you to tighten up your business processes and tweak your strategy with a lot more confidence than you’ve ever had before. This can reduce any expensive errors and help you to move faster in the future.
2. You can get to know your customers inside and out. Customers today want more than a good product. They want a personalized experience and you can give it to them. Data allows you to get to know your audience on a new level and you can learn who’s buying from you, when and how often they shop, and what motivates them to make that purchase in the first place. You can even learn what channels they prefer to communicate through, which is so handy for you with your marketing strategy.
3. You get to streamline your operations. When you streamline the way things run in your business, you can cut your costs. Data doesn’t just improve your sales and marketing, but sharpens how your business runs behind the scenes. Fixing friction points like this can really lead to better output and less waste, and it also lowers your cost without having to sacrifice on any quality.
4. Data can help you to predict the future. It’s not like looking into a crystal ball. Predictive analytics gets you close, though. By analyzing past trends, behaviours, and outcomes data, tools can forecast what might happen next. This is useful for your inventory planning, seasonal promotions, and budgeting your cash flow. 
5. Data is more accessible than ever. You might be wondering where you get all this data? How do you manage it without a massive IT team? That’s where cloud based solutions like DaaS come in. You may be asking what is Data as a Service (DaaS)? To put it simply, it’s a model that allows businesses to access, manage and use data through cloud based platforms without having to store it all in house. It’s like subscribing to data the same way you subscribe to music or software. That means that even small businesses can tap into high quality data with analytics tools and real time insights without needing deep technical expertise or expensive infrastructures.
6. Data can help you to outsmart your competition. Being competitive does not always mean being the biggest. Smaller businesses can often move faster because they’re not bogged down by red tape. This means that data is going to give you an edge. You’ll always be able to spot gaps in the market much quicker than others, and you can identify trends before they hit the mainstream. From here, you can jump on opportunities that your competitors have not yet noticed. Plus, keeping an eye on competitor data, such as pricing, customer reviews, or product launches can help you to respond strategically rather than scrambling to catch up.
7. It helps you to bring out new revenue streams. Sometimes the best way to grow is to innovate, and data can spark those moments that lead to your next big idea. Maybe your sales data reveals A surprising use for one of your products that you can capitalize on. Or perhaps customer feedback shows you a demand for a service that you didn’t consider. Businesses that embrace data are often the first ones to find markets with new solutions, giving them the upper hand in emerging industries.