How to Use Data to Drive Your Business

Even if your business is booming, using data from different sources can help you grow. You can pull data from multiple sources, and the information you find can help you in everything from customer acquisition to product development.

Today, Qwery M offers tips on how to use data to boost your business to the next level.

Where Does Data Come From?

If you’re new to making data-driven decisions, knowing where your data might come from can be helpful. Many companies utilize data pulled from social media. You can also analyze sales transaction information, website bounce rates, and customer shopping habits. If you currently use a customer relationship management program, this will be full of valuable insight, such as purchase tracking, documents, phone numbers, and even emails and text messages.

Knowledge Is Power

Before we discuss specific ways that data can help you change your business, it’s essential to arm yourself with the tools you need to understand that fully. Research is critical here, but earning an IT degree can sharpen your data and analytic knowledge. If you already have a bachelor’s, consider pursuing a master’s online, which you can do while you continue to manage your business.

How Data Can Help

Analyzing data can help your business in virtually all areas. These include:

• Cash flow. Data-driven accounting can help you identify patterns of late or non-payment. When you know where you have a cash flow problem, you can then take steps to ensure you get paid when you should. A straightforward solution for this is to change how you invoice. If your current invoicing process is confusing, use an invoice generator that allows you to streamline your financial documents. You can find a template online that’s easy to customize with everything from your payment terms to your business logo.

• Marketing. All significant retailers utilize data to provide a better experience for their customers. One example is Walmart. This commerce and e-commerce giant uses the information to tailor promotions to each customer via the app and other avenues.

• Product development. Product managers, designers, and your company’s marketing team can utilize things like Google Analytics to assess customer shopping behavior. This can give them an edge when developing or refining new products or changing product offerings. SmartData Collective says data is highly valuable when and to whom to market.

• Risk management. Data can help you minimize the risks of cybercrimes. Reciprocity explains that leveraging various sources can offer you “a wealth of insight into organizational risk, which allows for assessing and minimizing threats.” You can use the information to spot patterns that will help you employ safety measures at critical times.

• Inventory. If your company relies on inventory, analyzing data around it can help you track what you need, what you don’t, and which vendors consistently deliver on time. Your inventory system can provide information from your product IDs and measuring units to understand who ordered and when. Utilizing a combination of descriptive, diagnostic, predictive, and prescriptive inventory analytics is one of the best ways to properly plan and prepare your inventory so that you can best meet your customer needs.

Analyzing data is often intimidating for new business owners. But it does not have to be. Start small by evaluating your customer data to look for trends that can help you help them. However, if analytics isn’t your forte, don’t count out the possibility of returning to school to strengthen your knowledge base. You may know numbers, and your business will benefit in all areas.

The Qwery M blog is full of helpful information to help you achieve a balance between work and home. Visit often for insight on how to live the life you’ve been dreaming of.

Guest blogger Poppy Williams, from TechBizGuide.com, wrote this article, sharing valuable insights to help you develop professionally.