Five Ways Data Analytics Can Benefit Your Small Business

Data analytics is one of the most powerful tools that any modern business can possess. Today, companies are collecting more data than ever before and embracing this wealth of information that you have at your fingertips will provide you with a real opportunity to boost your growth and success and drive positive changes for your business. Any business decision that you make should be grounded in solid data – without data, business decisions are typically less informed and a trial-and-error approach is often more necessary, leaving more room for mistakes. Using data analytics provides you with key insights into making the right choices on behalf of your business. 

Analytics

Analysing data can provide you with a huge amount of insight into the situation and health of your business, giving you a clearer idea about where you currently are in your quest to meet business goals and objectives, what’s going on in your company currently, and whether or not any adjustments are needed in order to get better results. 

Thankfully, obtaining data has never been easier for businesses with a huge range of tools available to help you collect and analyse data to your advantage. There are various tools that you can put to use to collect data from visitors to your website, social media pages, and more. Automated data analytics tools provide you with real-time information on a user-friendly dashboard, giving you information that you can use to make the best business decisions quickly. 

So, why is data analytics more important than ever for small businesses, and how can it benefit your brand?

Set Realistic, Achievable Goals

Every business owner knows that they need to set the right goals for their business in order to succeed. However, whatever goals you are setting, it’s important to ensure that you are being realistic and have a clear idea of what your business is going to be able to achieve. Setting unrealistic goals is a pointless exercise that will only leave you feeling frustrated. But without the right information, it can be difficult to determine what is and isn’t realistic for your company. It leads to a lot of guessing, which could put you in a position where you are constantly changing the goalposts as you go along. Business analytics allows you to examine previous business data to provide you with a clearer picture of what your company is capable of and what your most realistic goals are. 

Identify Your Ideal Target Audience

Understanding who your target audience is, is absolutely essential for businesses, particularly when you are just getting started. If you misunderstand your customer base, you could end up in a situation where your business is simply not doing as well as it could because you are trying to sell your products and services to the wrong people. The good news is that analytics can help you figure out who your ideal target audience is. You can use a range of analytics tools throughout every stage of your business to ensure that you are still targeting the right types of customers or whether you should consider moving your products or services to a different market. Existing customer data, social media data, and even data from your competitors can all be very useful in helping you determine who the people that want to buy from you are and where to find them. 

Make More Informed Decisions

You will probably always need to use your intuition and previous experience when you are making an important business decision, but these alone can’t be relied on to make the best choices regarding your company, customers and employees. The best business owners know just how important it is to use the facts to back up every decision that they make, and involve data as much as possible. Whether you are putting together pricing strategies, hiring a new employee, or coming up with a new marketing strategy for a new product, data can help you determine which decisions are likely to work best for your company based on historic trends, consumer behaviour, individual customer preferences and more. If you want to improve your knowledge of using data to back up and support the business decisions that you make, this master’s in business analytics degree program might be a useful choice for you. 

Engage and Connect on Social Media

Social media might have been invested with the aim of helping people stay connected with friends and family, which it has certainly succeeded at. However, social media also serves another purpose as one of the most powerful tools out there for connecting brands to their customers. Using sites like Facebook, Twitter, and Instagram has become a crucial move for modern businesses and the majority of customers will expect to be able to find your brand on their favourite social media platform. Using social media not only gives you the opportunity to advertise your brand, products and services, but also gives you a platform that you can use to get to know your customers better, engage with them, and create stronger relationships. Social media is often used for discussions, and you can use this to your advantage by finding out what people are saying about your brand online and using this information to make better business decisions in the future and provide your audience with what they want to see from you. 

Get Better Marketing Results with Personalisation

Once you have determined your ideal target audience, you can use data analytics tools to narrow them down further into segmented groups and ensure that everybody you market to has a personalised experience. Personalisation is one of the best ways to make an impact on your target audience when reaching out to them and create a strong customer relationship. You can divide your audience into a range of distinct groups to aid with marketing such as gender, age, income brackets, locations, careers, hobbies, and more. Then, you can use a range of tools to create personalised marketing content that targets large groups of people but ensures that individuals are being provided with information that is more relevant to them. 

Even the smallest businesses today are collecting large amounts of data. As a small business owner, there are endless benefits to analysing and using this data to your advantage.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.