We live in an increasingly data-driven world. Data is now a huge industry, one that is particularly in the spotlight because of the Cambridge Analytica scandal that’s currently unfolding. The seriousness of the current situation highlights just how powerful data is as a resource, as well as the value that it has for businesses in particular.
If your business doesn’t currently have any procedures in place for collecting and analyzing data, then this is something that you should consider adding to your capabilities. Once you have the necessary infrastructure and know-how in place, you can start to implement data-driven decision making and take advantage of all the potential that offers.
Here are four ways that data can be used to completely transform your business and improve operational planning and efficiency.
Data analytics is probably the most powerful marketing tool available today. Data allows you to identify key target demographics and to subsequently target these specific groups with your advertising. The more information that you can gather about the people who use your products and services, the better you can understand them. Big data has completely transformed the world of marketing; the extent to which it has allowed us to understand group behavior is both remarkable and terrifying. If you are ready to add new capabilities to your business, take a look at an Analytics Manager Salary.
The more data that you have about your current operations and their effectiveness, the easier you will find it to identify and rectify inefficiencies. Often, the inefficiencies in a business’ workflow aren’t immediately obvious. Sometimes, it can appear on the surface that everything is running perfectly when behind the scenes there are opportunities to improve efficiency.
The more information you have access to, the more informed the decisions that you can make are. Without the benefit of data, and the ability to analyze it, you are forced to act reactively rather than proactively. Data allows you to make predictions about the future and to avoid mistakes before they’ve even been made.
Outdo Your Competitors
Either your competitors are also using data analysis themselves, or they are not. If they are, you will need to be using data yourself to compete on their level. If they aren’t using data themselves yet, you have an opportunity to get ahead of them and give yourself an advantage.
A Note on Security
Given recent events, you may well be cautious about asking for and storing large amounts of data from your customers, and so you should be! However, you should be aware that the majority of data that is used is anonymized. While there are some sophisticated methods of de-anonymizing data, these are impractical for most people. You should be honest with your customers about data that you collect, but you should be able to do so passively and anonymously.
It is hard to overstate the benefits of collecting and analyzing data for businesses. If this is something that you want to seriously pursue, you will need an analytics manager to oversee collection and analysis.