Are you a small business owner and think that data analytics is not made for you? You may be wrong. If corporations and large businesses can benefit from data analysis then why can’t you? All sizes of businesses can take advantage of data analytics. Data analysis can benefit a business in many ways. Keep reading on to know more.
The entire business world is revolving around big-data technology. Data is common in all types of business. Without relative data, it is next to impossible to run a business. Data plays a vital role in providing actionable insights about a particular thing. With respect to today’s business environment, it is now crucial for all businesses to adopt big-data technology.
To take advantage of the data technology, you can use data analytics tools. By analyzing data using a tool, you can get deep insights to take the next step in your company. And it is also a fact that the businesses using data analytics tools see a dramatic increase in annual sales as said by the Georgia Small Business Development Center.
A large volume of data is often described as big data. Businesses generate big data every year to analyze and get actionable insights. Big data requires you to organize and categorize it so you can utilize it effectively and efficiently.
Importance of big data in businesses
Following are some of the advantages, businesses can get using big data:
- Cost reduction
- Improve organizational efficiency
- Let you know the weaknesses and failures of your business
- Helps in designing new products and services
- Provide 360-degree customer reviews
- Take care of fraud detection
- Helps in making pricing strategies
- Helps you make problem-solving and smarter decisions
How can you use big data as a small business owner?
If we talk about the business that thinks of big-data analysis is around 51% but not all do data analysis. You should know that only 45% out of 51% of businesses perform data analysis. This information has been provided by the SCORE or Service Corps of Retired Executives. Also, not all businesses believe that acquiring new customers is their top priority. Only 73% of small businesses think so.
Through proper data analysis, it becomes easier for small businesses to achieve their goals. Data analysis doesn’t require more time from you. Using technology, you can study a large volume of data in a few moments. You should know that you already have several sources to start data analysis. Here are some common sources you can begin with data analysis from:
- Study email marketing reports
- Look at sales receipts
- Use social media analytics
- Take advantage of website analytics
- Grab data from connected devices
- Find public data
- Explore data lakes
According to SCORE’s report, the businesses that perform data analytics take increased ROI. Also, data analytics provides useful insights about your customers so you can try your best to retain them. There are many data analysis tools available in the market. Some of the tools are premium while many are available for free. You can use the free analytics tools that you get with your social media accounts.
Important questions to ask to make the most out of your data
Without asking the right questions to yourself, you can’t make the most out of your data analysis. Start by collecting information like sales, gross revenue, customer retention, etc. However such type of information comes under a matter of pride.
Apart from collecting this information, you need to ask meaningful questions. For instance, which product line requires improvement? Which vendor provides you the value of money? By asking these questions, it becomes easier for you to take care of the current operational practices.
If you have not started data analysis yet, you will find a lack of information to analyze. Sometimes, you might have more information that you can’t handle. Data keeps expanding over time and you need to use powerful tools to analyze.
How do you analyze the data?
The term “big data” comes with some reasons. It refers to the evaluation of a huge amount of information. So, without power tools and methods, you can’t analyze the data.
A non-technical individual can get some useful insights by analyzing a set of data. But without professional expertise in data evaluation, you can’t grab the right value from data sets. If you can’t hire a full-time professional for data analysis, at least you should hire a consultant who will take you in the right direction.
Moreover, let’s learn about some tools and solutions you can use to deal with big data.
- SAS: SAS is a data analytics solution created by the SAS institute. It is a software suite developed to mine, manage, retrieve a large amount of data from several sources like the internet, social media, etc.
- ClearStory Data: This data analysis solution has been developed to help businesses in getting insights about sales, marketing, and more.
- Kissmetrics: Kissmetrics helps businesses in studying customers’ behaviors.
- InsightSquared: InsightSquared is designed to grab data from existing software in your company and provide actionable results.
- Watson Analytics: Watson Analytics has been developed by IBM to deal with advanced analytics for all sizes of businesses.
How should you present the data after its analysis?
After analyzing the relevant data, you will have to present it as a final result. The data presentation should be clear and organized so anyone can understand it and make effective decisions. The way you know to present the data is through productivity apps like Microsoft Excel and Microsoft PowerPoint. But they are the conventional way to present data. You can try something creative like an interactive executive dashboard.
That is all you need to know about data analytics for small businesses. Kindly read the full article to know more.
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