The Power of Using Data to Grow Your Business

21 Apr 2020

When you run a business, analytics is one of the most powerful tools in your box. Today, there is a massive amount of information available to any company that is ready to embrace it and put it use. Data is one of the most important assets to your company; using it allows you to drive further change, maximise positive results, and ensure that your business achieves steady growth and progression.

Data-driven decisions are absolutely essential for any modern business. Taking advantage of the data at your fingertips and the wide range of data analytics tools available to help you interpret and understand it will ensure that you have the insights you need to make informed decisions in the best interests of both your brand and your customers.

The Benefits of Data Analytics

Using data to drive decisions can have numerous benefits for businesses of all sizes, from small home businesses to large global brands. First of all, you can gain a clearer understanding of your business’s health; data analytics helps you figure out whether you are on the right path towards achieving business goals and allows you to stay in the loop when it comes to what’s currently happening in your company, allowing you to make the right decisions and adjustments to help it thrive.

And, it’s easier than ever to get the data that you need. Tools that you can embed on your websitehave made it simple to automate the gathering of pertinent data that has a direct effect on your business, with sophisticated dashboard reports that are easy to understand and can be used on a regular basis for making decisions.

Data analytics is often the key difference between a business that succeeds and fails these days, particularly for online and e-commerce companies, who can put data to use in order to measure user behaviour and figure out what has the most impact on their website. Data analytics makes it possible for many businesses to figure out what works and make money online.

Setting Realistic, Measurable Goals

The lack of correct information leaves setting goals for your business down to guesswork. And, assumptions rarely work well in business. You will want to avoid your business goals being moving targets that are constantly shifting, so using data analytics will help you to use the numbers and facts to make educated decisions about where your goals will be and when you can realistically expect to hit them. If you are interested in learning more about analytics in order to improve your business goals and decisions, check out the courses available from Aston University.

Using data analytics allows you to gather and analyse the data from previous activities and historic trends, which in turn makes it easier to base your future goals on what has worked well and what did not have great results in the past. You can avoid making mistakes from the start when you have a clear idea of the strategies that tend to historically produce the best results. This allows you to have a clear idea of what your goals should and shouldn’t be right from the start.

When you use data analytics for business goal-setting, it reduces your risk of missing out on opportunities that could lead to exponential growth and success for your business. It enables you to better understand when a certain goal is unrealistic and helps you determine the goal that you should aim for instead. And finally, using data analytics to track your progress towards business goals will give you a better understanding of the strengths and weaknesses that you should be focusing energy into improving in order to ensure business growth and success.

Make More Effective Business Decisions

Experience and your intuition might be valuable to have when you make a decision, but the truth is that no matter how much experience you have and whatever your gut is telling you, it’s not always 100% reliable. Cold, hard facts win hands down when it comes to driving the right decisions, particularly when it comes to business. It’s almost impossible to make good decisions for your business without relying on data in some way; intuition and experience can only get you so far until eventually, you will make a mistake.

Pricing strategies, inventory management, and many other business factors may need to regularly have key decisions made regarding them, which will impact the performance, success, and growth of the company overall. Using data analytics will help you understand what works well and what doesn’t, enabling you to be sure that you are making the right call based on what the statistics say.

For example, when hiring new members of staff, you can use data to make more informed decisions regarding how many employees you will need to hire in order for the workforce to run smoothly, and which positions you will need to hire for.

Using data for business decision making has a number of benefits. Typically, companies that drive their decisions with data are three times more likely to make the right call than those who do not. And, certain decisions have less risk attached to them when data analysis is incorporated into the process. This leads to improved business efficiency and higher profits, which in turn provides decision-makers with the confidence to make the right call next time.

Discover Your Ideal Demographic

Data analytics can be utilised in a wide variety of ways in order to identify your ideal target market. For example, data already collected from your existing customer base, and data that you collect through social media can both be extremely valuable sources of information when it comes to determining who your ideal customers are and what you should do in order to attract them away from the competition and towards your brand. In addition, there is a lot of publicly available data, which can be a very useful resource to use when choosing the right audience for your company’s next marketing campaign to target.

Some of the most popular tools that you can use to gather data on your customers and figure out your ideal target market include:

Facebook Analytics: This is a tool that allows businesses to measure user activity on their Facebook page. It shows factors such as where visitors are coming from, how Facebook advertisements and posts are performing, and whether followers or page visitors are going on to visit your website or app from your profile.

Google Analytics: This tool can be added to your business’s website to collect and identify a variety of user trends. Using it can help you gain a better understanding of the type of visitors that your website gets, how they behave when they are on your site and the type of content that they prefer the most from your brand.

These two may be the most popular, but there is a huge range of both free and paid tools that you can use on your social media profiles or website in order to collect data on your audience, identify your ideal customers, determine what they engage with from your brand the most, and learn more about them. As a result, the data that you collect can be utilised to find out which demographic your brand has the most success with, which can help you make more informed decisions as to where to direct your marketing and advertising efforts in the future.

Personalise Your Advertising Approach

Using analytics for business allows you to divide your audience into distinct groups. This enables you to only show relevant content to certain users and provides value for your business. You can use the data that you collect via social media, your website, and other channels to better personalise communications with individual users and groups, driving engagement and boosting your relationship with your target market.

Business analytics tools allow you to segment your audience and create mass personalisation. There are a variety of tools available that you can use to automatically personalise email marketing content, for example, in order to ensure that each member of your target audience is only receiving content that is relevant and interesting to them. This approach is one of the most efficient options as it allows you to personalise content and build trust while targeting large groups of consumers.

There are several reasons why all businesses today should be using data analytics to personalise marketing efforts. Consumers expect personalisation and as a result, providing it boosts your business’s reach and allows you to have a larger impact on your audience, which in turn drives conversions. And, it works - over 70% of marketers report an increase in customer engagement from using targeted personalisation. Overall, it helps you build better relationships with your target audience since personalised marketing materials are more likely to be noticed by the recipient and taken seriously.

From improving goal setting and business decisions to building stronger relationships with your customers, any business today should be utilising actionable data to drive growth and success.

Photo by Lukas from Pexels

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