Big data, data-driven analytics, business intelligence – these catch phrases all point to the same trend that has already emerged to reshape the business landscape:
Data is information, and information is power.
With the digital transformation well underway, companies large and small are reorganizing their business processes around data collection.
And rightfully so.
Properly captured and interpreted, data can be used to convert useful insights into profitable policies – improving operational efficiencies, resource allocation, and customer service.
By extension, data analytics tools – like those offered by Alphavima Technologies – can help your business make sense of a wide range of information, using integrated technology to ensure data insights are at the ready.
In this article, we’ll review several strategies on how to use data to grow your business. By using data-backed business strategies, yours can be among the many companies successfully capturing the market and outperforming their competitors.
Data Drives Digital Transformation
As companies have embraced new technologies – usually intending to automate business processes that were once manual – the value of data has increased exponentially.
According to a recent study by MicroStrategy, companies worldwide are using data to boost process and cost efficiency, monitor and improve financial performance, and drive strategy and change.
And no change has been greater, in the last 20 years, than that of digital transformation. As the volume and type of data that a business collects increases, with the aid of computers, the complexity of analyzing this data increases in tandem.
This necessity has driven the big data industry to new heights. Another survey, conducted by McKinsey Global Survey, suggests that companies who have not fully embraced data analytics – as part of their digital transformation – do so at their peril. The same survey shows that companies with the greatest cumulative growth in revenue and earnings have received a significant portion of that boost from their capacity to leverage data-driven analytics.
How Leadership Can Build A Powerful Data Culture
Industry leaders are at the helm of this cultural shift. By using data-backed business strategies, executives are using data to get a 360-degree view of all the details of their projects and to develop business intelligence strategies that help employees better coordinate their efforts.
All this strategy coalesces into a powerful data culture – “a set of practices that brings together data talent, tools, and decision making so that data becomes the default support for company operations.”
The result is that good leadership has become practically synonymous with the efficient use of data in growing a business. Data analytics has become central to more informed decision-making, increasing revenue, and fine-tuning business operations.
How Using Data Can Grow Your Business
Through learning how to recognize trends, test hypotheses, and draw conclusions from data sets, companies can build analytical frameworks to guide business operations.
And this is equally true for SMEs as it is for Fortune 500 companies. Here are a few ways that using data can help to grow your business:
Firstly, data collection and interpretation can help your company to create personalized product suggestions. Companies, such as Amazon, have found incredible success by using past “search data” to market products to their new and existing customer base.
Secondly, the analysis of data can help to identify operational inefficiencies – some of which are systemic and (therefore) hidden from view. Companies can use customer data to look for patterns that occur in sales, web traffic, and customer service requests to identify breakdowns in business processes and the sales funnels that drive them.
Thirdly, data-driven analytics can be used to improve customer support – one of several data analytics trends that are now emerging. Customer support plays a pivotal role in the development of any business; having an eye on the numbers can help improve customer experience. For example, if you notice that 50% of your customers that come to your website need help at the “login” stage – say, with resetting their password – you can train an AI program to assist those customers or provide useful FAQs that address statistically prevalent queries.
These are just a few of the ways that data analytics can help fine-tune your business and drive success through its digital transformation. While there are many approaches to integrating data analytics into your business, the resounding message is: If you don’t use the data, you’re going to fall behind.
To learn more about how data analytics can be used to help grow your business and to find a data-analytics solution that’s right for you, reach out to one of our experts today!