Data is ubiquitous. It is different, but it is present everywhere. Though we cannot calculate its value, we can collect, store and analyze data to derive valuable insights. Any piece of information is data so whatever you do, generates new data. For example, when you perform any transaction with your bank, it generates and stores data for further usage. In the same way when you browse a website, say for shopping, all that you search for is stored by Google and other data-generating websites as data. But, as already mentioned, data needs to be analyzed, otherwise, there is no use in collecting and storing raw data. Thus, it has to be processed to obtain useful information out of it.
Earlier, data teams used to put a lot of effort to prepare data for analysis due to technological limitations. But now, with the latest advents in technology, it has become easy to collect, store and analyze data from discrete sources and provide it to business users for decision-making in real-time. Hence every business must incorporate an efficient data analytics strategy.
Let’s take a look at the key elements of a good data and analytics strategy:
Your data requirements
Before you start finding ways to procure data, you must define the purpose of procuring it. Decide how you want to use the data. This is because you may have to collect specific type of data for every goal.
Source and collect data
Once you have classified your purpose that you want to achieve with the data, the next step would be to source, collect and store data to fulfill that purpose. You can source and collect data by:
- Purchasing external data
- Using internal data
- Practicing new collection methods
Transform data into insights
After managing the collection and storage, the most important thing that comes next is to plan how to apply analytics to your data so that it becomes easier to extract important business insights. The derivation of these valuable insights would help you in making an informed decision, improve operations and create value.
Now, when you have decided all the things mentioned above, the next step is to consider the technology and infrastructure that you will require to build a data strategy for your business. Along with that, you must analyze the implications of these decisions. So, decide the software and/or hardware that you will require to transform your data into actionable insights.
Data competencies and governance
Enhance the skills of your existing workforce and outsource the data analysis to develop data-related competencies. This will help you to extract the best results out of your data. In all the aforesaid processes, it is advisable to incorporate data governance analytics and follow privacy and security compliances in your data strategy. This would avoid any legal and regulatory obligations and save your organization from losses and prevent your data from turning into a massive liability.
A few reasons why every business should have a data strategy:
1. Enhances efficiency
To incorporate data analytics it is important to collect data about your organization’s internal and external environment. Analytics would help to make use of data and achieve insights to make better decisions regarding your organization’s finance, sales, marketing, product development and other vital functions. It helps you improve the efficiency and performance of your operations. The enormous data that you collect, store and analyze, helps you to:
- Collaborate better
- Perform better
- Maximize product offerings
- Surpass competitors
Not only this, but data analytics will also help you to find problem areas and recognize error-prone operational areas. This would help you to address the issues in time and save you from unnecessary hassles.
2. Provides business opportunities
You can recognize business opportunities and make the most of them with the help of mining sales, marketing and customer utilization data. Fewer clicks on ads incur less cost and enable you to generate higher revenues. Moreover, it helps you provide your customers with better experiences in the sales process which leads to high net promoter scores. This further minimizes acquisition costs employing organic traffic and better brand recognition.
3. Minimizes cost
Data analytics help you to identify efficient methods of doing business and eliminates inefficiencies to save costs. In addition, it supports the development of products that suit the market and fulfill consumers’ requirements. It is better not to spend money and engage resources on products that are not suitable for your target market. It’s okay to help your customers save a bit now and then on prices and keep them informed about your additional services to retain them by keeping them happy.
4. Improves marketing actions
Isn’t it a great idea to design customer-centric marketing campaigns? So, when you design your next marketing campaign, think about a few points:
- How can I assemble and present the message clearly to the audience?
- How to comprehend and communicate the desired solution to the audience?
- Will it be okay to follow the audience around the internet presenting ads?
- Is it ok to narrate a story or present clickbait?
Think about it once and you’ll get the answer by yourself. When you know the needs of your customers well, it becomes easy to design and develop an effective campaign. So, the trick is to understand your customers well. It will help you to customize your campaigns to target your customers effectively and attract them easily.
Though it sounds interesting and easy, it is a bit tricky because you have to make use of your data to know who your customer is and what their decision-making pattern is. This would enable you to craft a thriving message to win them over.
5. Informed decision-making
With data analytics in place, you will get the ability to make decisions promptly and accurately. There would be no delays as you’d not require any manual process for data processing and analysis. You’ll get refined data without delay that would enable you to move faster and meet the deadlines. This is definite to give you better results as you’ll make smarter decisions that will lead to improved business performance and increase profits.
6. Designing new products and services
When you can identify customer needs and expectations, you can develop better products for your customers. You can achieve this easily with product and service analytics. To begin with this, you need to analyze the following:
- Complete product utilization
- Client net promoter score
- Application implementation
- Natural language analysis
- Customer attrition rate
- Product churn
Before this, you must also understand the current state of your business and analyze the trends of product/service utilization that will help you to predict future outcomes and achieve better results. With this, you will be able to earn profits in two ways:
- By developing products and services as per the demands of your customers
- By generating demands and developing products and services to fulfill them.
7. Increases competitiveness
As stated above, analytics help you to collect and process data to practice better decision-making. When you have understood the importance of data and data analytics, you must spend some time asking the right questions and find logical answers before you take an action. This will give you a competitive advantage as you will be able to make informed decisions, curb costs and enhance the operational efficiency of your organization.
Furthermore, data analytics will help you to identify certain gaps that your competitors might not be aware of and still not covering. You will improve customer experience and guarantee maximum customer satisfaction which will give you an extra edge over your competitors.
There is no doubt that today data is central to any business and implementing a data management strategy has become crucial. Any piece of information is power in business and the level of information that Big Data provides is incredible. The significance of data throughout every facet of business is increasing every day with the tremendous growth in Big Data and the swiftly evolving data analyzing methods. Hence, organizations must take data as a tactical asset and understand the importance of developing strong data and analytics strategies that will help them achieve better outcomes in a world that is driven by data to a great extent. To know more about data and analytics in detail, talk to our experts.