There’s no getting around it; business success requires data.
Understanding how to effectively use data to lead and define your business decisions is important when launching and operating a business.
Whether you’re starting a new business or attempting to grow an existing one, valuing the science of leveraging data effectively can be the missing piece to the puzzle you’ve been trying to solve.
In this article, we will discuss the transformative roles data plays in every area of your business, with the goal of providing you with insights and tips to help you steer clear of setbacks and unnecessary mistakes while replacing them with possibilities through the implementation of metric-driven systems.
Consider how data is:
Control
There is power, confidence, and full control when guiding your business with data. Learning how to take action based on concrete, measured evidence rather than emotion or ideas without valid research, a framework, or a plan can lower your risks of failure and wasting time and money.
Using data to make business decisions can help you keep track of your company’s or project’s progress and enable you to adjust goals before it’s too late. Data and accurate market research and analysis reveal patterns and trends that increase your accuracy in making good decisions and improve productivity.
In reality, business can be unstable, and as a business owner, you should always be ready to pivot. However, data becomes your compass and lifeline during testing moments, saving you from the headache and risks of unproven ideas, indecision, and wasted resources like time and money, which could be better invested in strategically oriented growth.
According to research by McKinsey, organizations that leverage customer behavioral insights and data outperform peers by 85% in sales growth and more than 25% in gross margin.
Discovery
Data helps you discover new opportunities in various key business areas, such as branding, business development and operations, user design, product development and advertising, and it is integrated in various ways.
Insights and research can take on many forms, and here’s how they can look:
- Data informs business operations, refines policies, and leads to more efficient workflows, improved customer experiences, and better strategic planning.
- Choosing relevant metrics and conducting research rather than relying solely on gut feelings or assumptions is crucial.
- User design, experience, and product development benefit from a data-driven approach, providing a competitive advantage and aligning with market expectations.
- Behavioral insights and trends help create accurate user personas and profiles, catering to specific needs and expectations when positioning and marketing products, services, and features.
- Data is essential for multimedia campaigns and advertising, helping identify the right audiences, personalize content, and optimize ad performance.
While creativity is always necessary, pairing it with facts leads to success. Planning, research, and data are essential for effective advertising campaigns, preventing ineffective messaging, missed opportunities when targeting audiences, wasted budgets, and negative brand perception.
Data-driven insights, measurement metrics, and alignment with your marketing strategy and brand identity are major factors in delivering successful and sustained results.
I like to call this process “Creating Value Through Analysis.”
ILYH, an acronym for I Luv Your Hair, is a past client of mine and one of my favorite success stories. They are an online Black-owned and women-led beauty and cosmetics brand that saw impressive results in less than a week by following a data-driven social media marketing plan. This plan relied on insights from customer behavior, data from advertisements, and engagement data from their social media, website, and previous campaigns.
In just one week of implementing this strategy, the outcomes were astonishing:
Their online store sessions shot up by a whopping 623%.
Overall, they tripled their existing engagement. They attracted a significant number of new followers and caught the eye of a few celebrities and influencers, resulting in organic endorsements and reshares. Most importantly, they effectively circulated and strengthened the Black dollar.
They did this by leveraging diaspora social networks, groups, behaviors, public figures, and media channels to showcase their products to those who needed them.
All these achievements were possible by combining metrics with creativity and aligning with the interests and lifestyle of ILYH’s audience.
And last but not least, good insights can also:
Improve Equity
Data has the potential to play a vital role in closing the gaps for Black entrepreneurs and consumers in the business world. If your brand has a significant Black audience or culturally diverse partners, it’s crucial to gather specific data points for accurate representation, scaling, and making informed decisions to address unique challenges.
Equitable and authentic marketing that directly addresses disparities is a highly effective approach. This strategy allows businesses to:
- Tailor experiences to meet diverse needs.
- Promote transparency and alignment.
- Access valuable feedback.
- Uncover new opportunities.
- Foster inclusivity.
By adopting this approach, businesses not only improve their outcomes but also contribute to societal progress as catalysts for positive change.
If diving into data analysis and making data-driven decisions isn’t your thing, consider delegating these tasks to trained professionals with titles such as data analysts, data scientists, business intelligence consultants, and market researchers. These experts specialize in data analysis, predictive modeling, visualization, and providing insights to guide strategic decisions. Or you can find someone with similar skills, interests and experience.
That said, before seeking these professionals, take time to evaluate your business’s specific needs, the scope of your data-related projects, and the level of experience you believe is necessary for the job. This will allow you to find the right experts to support your goals and drive measurable and positive improvements in your business.
Read the full article here
