Organizations rely on data to support a number of important business functions. Not only can data be used to inform important decisions in sales and marketing, but it can also help businesses ensure that their product and services are meeting the needs of their customers.
However, is relying on data alone when making decisions the best way for companies to grow? Considering the human element is another important component of long-term business success, it’s important to know how to strike the balance between the two.
How Does Data Help Support Your Business?
Collecting and analyzing data in a business setting can provide a number of benefits. Below are some of the most common ways organizations use data to support their business initiatives:
Create More Meaningful Experiences
Rather than applying a one-size-fits-all approach to business development, organizations can leverage data to help them create more meaningful experiences for their customers.
By taking the time to analyze customer data, organizations can make sure that the direction their business goes resonates with their customers. Whether using historical data to help recommend relevant products or services to customers or provide better support, all of these data-driven decisions directly improve a customer’s perception of the brand.
Make Smarter Business Decisions
There is nothing wrong with following your gut as a business owner. Taking calculated risks plays a key role in helping an organization step outside of its comfort zone. However, making all decisions on “gut feel” alone can also be dangerous and lead to costly setbacks.
Making decisions that are supported by proven data is a much safer way to grow a business. This helps to improve resource allocations while avoiding many pitfalls that can get in the way of long-term success.
Gain a Competitive Advantage
Considering how competitive most industries are today, it’s important for organizations to be able to stand out from other brands effectively. Collecting and analyzing data can be the perfect way to achieve this.
By leveraging market research to identify industry trends or track competitor activities, you’re able to identify new gaps worth exploring. This gives the business a head start when introducing newer, more innovative products that can lead to new revenue streams.
What are the Most Common Sources of Organizational Data?
There are many different sources that businesses can explore when looking for more useful data. Below are a few of the most common sources:
- Website Metrics – There is a lot of useful data that can be collected from website metrics. For example, tools like Google Analytics allow website owners to track visitor demographics, where they landed on different pages, bounce rates on the site, and conversion rate percentages when evaluating the effectiveness of paid advertising initiatives.
- Surveys – Another great source for useful data is collecting it directly from your customers. Feedback surveys give customer service teams important insights related to client satisfaction rates and help them to continuously improve how they deliver on their promises. Surveys can also be used internally with employees or other stakeholders to help improve various elements of the business and improve team morale.
- Transactional History – Customer purchase history can be used to reveal important information related to certain habits or preferences of customers. By exporting sales data into various data visualization tools, organizations can get a clear picture of which of their products are most successful and where they need to adjust their inventory availability.
How to Leverage Your Data While Keeping Your Business Personal
Although data is an important asset that businesses should leverage, basing decisions solely on what the numbers tell you isn’t the best approach. This is especially true if data points you to make decisions that could directly impact your customer relationships.
Below are a few ways you can use your data while still ensuring your business maintains a personal touch:
Don’t Be Too Aggressive in Your Messaging
Many businesses like to use customer data to help them provide relevant purchasing recommendations through social media marketing campaigns or when customers are completing a transaction. Although this can be valuable, it’s important not to come across as too intrusive or pushy.
If customers receive a steady stream of emails or notifications telling them about products they should purchase, it can quickly become overwhelming and lead the customer to unsubscribe from them moving forward. Balance is key to building trust and avoiding recommending products simply to upsell them rather than trying to provide them with real long-term value.
Use Both Quantitative and Qualitative Data
There are different forms of data you can use to help your business make decisions. Remember that numbers don’t always tell the full story. You also need to understand the “why” behind the actions they are going to take.
Qualitative data is information that helps you to understand the emotional driver behind certain customer behaviors. This can be extracted and combined with other business data using feedback surveys and other methods that allow you to better understand what motivates your customers.
Put More Priority on Relationship Building
It can be easy for businesses to make all of their decisions based on what a spreadsheet tells them. The reality though is that not all “safe” decisions are necessarily the right ones to make. It’s also critical that the choices you make are directly benefiting your customers.
Be careful not to allow technology to replace the importance of real human connection. Take the time to connect and really listen to your customers to make sure the decisions you make are in alignment with their needs.
Strike the Right Balance When Making Data-Driven Decisions
The key thing to remember when using data to drive your decision-making is “balance.” By using the data you collect responsibly and weighing it against customer expectations, you’ll be able to make smarter choices for your business while building stronger relationships with customers.
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About Author – Chris Bretschger
Chris Bretschger, Managing Partner at Bastion Agency, is a seasoned marketer with over 20 years of experience in integrated marketing. He has developed brand strategies, managed media campaigns, and built analytics tools for clients like Mazda, Adidas, Jenny Craig, and Kia. When not leading Bastion, Chris enjoys superyacht regatta racing on the open seas.
