No matter the size, collecting and organising data can be incredibly powerful for any business.
Why? Because data can accomplish a myriad of things. It gives you a good picture of who your customer is, it improves profitability, and it improves your business’s efficiency.
And if you fail to capitalise on project management tools and software systems that present relevant data to you in a clear-cut manner — you’ll fall behind in a world where technological tools continue to dominate across industries.
From predictive analytics to consumer behaviour, interpreting data can help you draw insights that you otherwise would not have known.
If you’re looking for a couple of tips and common practices about how data and software suites can efficiently scale your business, this article will provide you with some direction to get started.
Let’s see how data can grow your company.
Data helps improve your business’s profitability
Looking at the monthly financials can only give you a glimpse of your business’s performance.
But data traces and tracks which among your decisions turned in profit and which one made your business suffer a loss.
A study led by the University of Texas of Fortune 1000 companies measured how data impacted profits. The results showed that just by using 10% of all available data usable, these companies can increase profits by $2 billion a year. Return on equity also increased by 16% in the same period.
By leveraging data, you and your company can benefit greatly from a financial standpoint. And with that information, you can bring along with it solid insights to mitigate any recurring problems from happening in the future.
Data can help you improve your daily processes
Not only does data help your business’s financial growth, but data can also help you determine pressure points and bottlenecks in your operations, which can then be used to figure out the next plans of action to scale your business.
Here’s one example. If your company finds out through data that their inefficiencies stem from outdated software or relying on manual tasks when there are automation software systems available, then that data can help them pinpoint that bottleneck. This can lead to a plan of action to mitigate inefficiencies, thereby promoting business growth.
With data, you can save time and money while also increasing company productivity. And the processes that data affects isn’t just limited to the daily operations of the business, but it spreads to all aspects of the company sphere.
Marketing, for instance, heavily relies on data to determine whether advertisement campaigns and channels are actually meeting KPI standards. And with marketing data analytics, you can come up with the concretised plans of action such as whether to find ways to improve and boost performance or scrap that campaign altogether in favour of better ideas.
Another example of using data to your company’s advantage is by using an advanced payroll system. Instead of manually plugging in data monthly in a spreadsheet, you can leverage software systems designed to make this process a more seamless endeavour. Having a dedicated company database can also help by:
- Reducing amount of time spent on managing data
- Turn random set of information to valuable resources
- Analyse data in a variety of ways
- Form a consistent basis of information
Data helps you know your consumers
Behind every purchase is a customer who found that the goods or service you provided aligned with their needs.
Sales and marketing data is all about connecting and reaching your customers. And while there are qualitative methods to gather information like interviews and question forms, data can uncover insights in a more organized and streamlined manner.
These data points are spread out between four key points. This includes your customer’s demographics, behavioural data, engagement habits, and attitudinal data. Each of these points of data is crucial information points that can drive your business in the right direction.
And let’s face it: knowing your customer base is an invaluable tool in shaping your marketing and product development strategies to cater to that demographic. This, in turn, would improve your profitability since you’ll end up directing your strategies to the people that have an affinity to your product or service.
In summary, here are the ways that data can help grow your company:
- Improves business processes
- Improves financial profitability
- Exposes customer behaviour
With all the things that a set of numbers and letters can achieve, it isn’t hard to see how data continues to play a big role in businesses across the globe.
Of course, data alone can’t carry a business to the top rung of the ladder in no time. You should also be able to crunch and interpret the data. Then once you and your colleagues come up with a plan of action, you’re free to execute those business strategies grounded by satisfactory data points as opposed to mere whims.
While the brainwork can be tedious, there are ways to digest sets of data. For instance, many software systems are available and can neatly organise data to make resource management easier. Use technology to your advantage — and the power of data can go a long way.