Data analytics isn't just for corporations. Small businesses can benefit from data analytics as well. Data analytics is a powerful tool that helps you find insights, solve problems, and make better decisions. For example, by analyzing sales data from your website or store, you can improve your website or store's performance and increase conversions. Or by analyzing customer complaints, you might be able to identify issues with your product or service that could affect its quality and overall satisfaction rating.
The field of data analytics has been growing rapidly in recent years for many reasons. First, there is a lot of data available about individuals, companies, industries and more. Second, there are so many different kinds of data now that it can be difficult for people to decide which sources are best for analyzing their own business performance. Third, there are new types of analytical tools available that provide useful insights into how to improve business performance.
Small businesses often have less resources than large corporations, but they still need to make strategic decisions based on data analysis. Data analytics allows you to do more with less by helping you find opportunities where others have overlooked them or have been reluctant to even try them.
These are some major ways you can benefit from data analytics:
Identify new opportunities: In order to be successful in today's competitive market, you need to identify new opportunities as quickly as possible. Data analytics can help you identify these opportunities by analyzing your current customers' buying habits and behaviors. Through this analysis, you can determine which products or services your customers want most and which ones they are willing to pay for more than others. If you don't currently have the resources for this type of analysis, data analytics might be able to provide a solution for you. Improve existing products or services: The same logic behind identifying new opportunities applies here as well — but instead of identifying new products or services that people may want in the future, it focuses on what people are currently using or paying for now. This could include identifying which features are most important to consumers or how much they're willing to pay for certain items or services on your website or mobile app store. You'll then be able to adjust.
Keep up with the competition: Data analytics can help keep small business up-to-date with the changing market environment. In particular, data analytics can help small businesses to take advantage of emerging trends in their industry and make informed decisions about where to invest their resources. Data analytics helps you stay competitive by providing insights into your competitors' strategies, resources and goals. 62% of retailers report gaining a competitive advantage from information and data analytics
The Small Business Problem
Of course, many business owners are already aware of the benefits of adopting data analytics for their business. In fact, 51% of small business owners believe that data analytics is an important requirement, but only 45% perform this kind of analysis.
The thing is small businesses are under a lot of stress.
They're juggling the demands of their employees, customers, and investors while trying to stay on top of their own growing business.
And yet, many small businesses don't have time to keep track of data. They don't have the resources or expertise needed to do it themselves.
We can look at this difficulty in 2 aspects:
Managing data collection and analysis: Small businesses don't have the manpower or budget to keep track of all of their data. They need tools that can make it easy for them to collect data from across multiple departments or locations, store it securely in a central location, analyze it and present reports in an easy-to-digest format.
Making business decisions: Small businesses are often hesitant to try new things unless there's a good reason for doing so — but sometimes those reasons aren't clear until you look at the numbers behind your sales and marketing efforts. With data analytics tools, you can get a better understanding of how your customers use your product or service before deciding whether it's worth expanding into new markets or changing marketing strategies.
The issues faced by small businesses when adopting data analytics, thus, needs to be countered by being able to find the right data analytics tool for their business needs while keeping in mind the limited resources available to them.
The Ideal Data Analytics Tool
The ideal data analytics tool should be able to do many things:
It should be able to collect and aggregate data, perform analysis on that data, and present the results in a way that makes sense to business leaders.
It should be easy to use, with lots of features that make sense for the kind of data you’re analyzing.
It should be affordable for small businesses.
It should make recommendations on the most appropriate actions for a given situation.
It should be easy to integrate with other systems in their organization.
It should allow you to create custom reports that are easily shared with other team members who might not be familiar with the software.
It's difficult to find such a tool that carries all these capabilities, while also not being too complex or intimidating to the business user. Instead of breaking your budget trying to integrate multiple tools to fulfill your business needs, we recommend the Tesser Insights Platform, as being easy to use while also carrying the necessary features any business looking for a data analytics tool would require.
While it may seem like an uphill battle for small businesses, the David in the world of Goliaths, data analytics can change the tides for smaller business. Large corporations often lack the flexibility of small organizations. With data analytics tools in hand, small businesses can get instant and auto insights from data. They can be agile and flexible enough to rapidly execute any changes that the data suggests and apply these insights to improve their business choices.
The revolutionary impact of data could even be strengthened on a smaller scale inside the business. Small adjustments to business procedures have the potential to deliver significant performance improvements and enormous advantages.
The pace of innovation is accelerating and the need to stay ahead of the curve has never been greater. To thrive in this new environment, small business owners need to embrace the power of data analytics and they’re in the perfect position to do so.