You hear the word data everywhere these days but for many small business owners, it can be a difficult concept. In fact, even those businesses that feel confident in their data collection methods can wonder how they should put that data to work for them.
Of course, this doesn’t mean there is any shortage of advice on the subject. Ask anyone in the business world and they will tell you that data can increase profits, convert more sales, deliver better customer service and almost anything else under the sun. But what are some concrete examples of how the data you have collected (or wish to collect) can impact your business? Read on to learn some specific ways—in straightforward terms—that data can propel your business forward.
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It gives you specific insights about your customers. The right data will pinpoint your target audience and allow you to understand more about them. What are the products they are most likely to buy? Do they prefer to shop online or in-store? Do they prefer email or direct mail? What do they think of your competitors. To put it another way, data can tell you how and where to connect with your customers.
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It helps you to price your products. At what price point are your customers most likely to purchase your products? Are their particular pricing strategies or deals that work better at particular times?
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It lets you know where your business is headed. Data allows you to keep tabs on patterns in your industry. What are your customers likely to want in the short-term and long-term. Does your business plan match these wants? How can you make sure that it does?
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It allows you to track your competition. What are your competitors doing? Often that is the best way to determine what you should be doing. Are their messages similar to yours? How can you differentiate yourself to drive in more business?
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It provides you with the ability to adjust your marketing strategies. Is there a surge in interest in something you are selling? Is engagement picking up or dropping off for a particular product you offer? Monitoring these types of things can allow you to jump on opportunity even before it knocks or ditch a strategy that isn’t resonating with customers or prospects.
Data can be an overwhelming prospect. By breaking it down by the specific ways it can benefit your particular business, it makes it a lot less intimidating and a lot more valuable.