Data analytics, which is key to driving optimal strategy for every business, help a business to more effectively target consumers with marketing efforts, create products that better solve current problems and prune unsuccessful methods while bolstering successful campaigns.
The 2016 Trends in Data Platforms and Analytics report by 451 Research estimates that revenue generated by data-collecting vendors will grow at a compound annual growth rate of 29 percent, from $383 million in 2014 to $1.37 billion in 2019. Predictive analytics are just as important as advanced analytics, according to the report, which states both sectors represent about a third of total reporting and analytics revenue in 2014.
Businesses are using data analytics in various aspects within technological tools across departments, from IT management to customer support administration. By storing data safely and securely in a cloud-based backup system that uses file encryption, such as that offered by Mozy, enterprises can protect private consumer information and business insights that keep them ahead of the competition.
Determine Data Objectives
With the proliferation of data coming from sources ranging from fill forms on websites to traffic and weather predictors of peak business times, to customer needs voiced on social media channels, the amount of data available to analyze and pull rich insights from is infinite. To efficiently glean valuable observations from data and put them to work, a business must:
- Evaluate data stream channels. Examine every source of data your business has and prioritize the monitoring of those sources for how that data can impact your business.
- Find a way to get organized. Technology-based data organization methods help businesses track and organize the insights they want. Automatic analytics can alert businesses when a shift in strategy could be advantageous.
- Measure, measure, measure. Develop data by measuring all strategies and methodology evolutions. Stop analyzing data proven to have an inconsequential impact on your business, and focus on increasing analytics methods for data that has.
Global management consulting firm McKinsey & Company emphasizes proper staffing and capabilities of a business’ IT department to ensure the most important data is being tracked and overlapping data is synchronized. Consider budgets and resources to determine employee dedication to data, but consider making it a priority.
Experian’s Dawn of the CDO 2014 report shows 92 percent of chief information officers desire a chief data officer role for a professional dedicated to data within a company. If the position is not within your company’s current scope, start planning for one now.
Put Data to Work
Once you have identified and are measuring the data that’s most important to your business, increase its power by making it relevant to key stakeholders, including the CEO, chief marketer and sales team. Make data transparent in easy-to-understand reports that are relevant to each team so they can use data to refine their strategies.
Test out new data technologies, or build a custom solution that better targets the needs of your business. Even free data tools, such as Google Analytics and analytics through social media sites such as Facebook and Twitter, give businesses rich understanding of their customers. Use free web tools such as these to understand the demographics of website visitors, the content that drives the most engagement and the configuration of sales funnel paths.
Use insights to influence everything from business operations, to product development, to copywriting, to the deals you give your customers. For example, SmartData Collective reports Capital One uses behavioral data to present offers to customers that they’re more likely to enjoy, which doesn’t just increase business, but also boosts positive sentiment. Retailer Target’s unique Guest ID it creates for every customer stores all past purchases, providing data so intelligent, it can even predict when a customer is pregnant, reports The New York Times.
No matter how much money your business currently has to invest in data technology, immediately strategizing and implementing data-gathering methods benefits your business. Use the data you’re tracking now to grow your business, and keep measuring and refining to predict how to cause exponential growth.