Many small business owners are struggling to grow their business and have a hard time understanding why. One of the common reasons is that they don’t know what they don’t know. The importance of data analytics has grown so businesses can know more about their customers.
In today’s world, it’s not enough to do good work. You need to be able to measure your results as well. Data is the most powerful tool you have as a small business owner, with the ability to shape your strategy and inform every decision you make.
But not all data is created equally. Horsefly Analytics believes that you can accurately prepare for the future with straight facts. Here are three types of data to help you grow your small business and get better results for your customers.
Why Is Data Important? The Importance of Data
Having access to the correct data is critical to the success of your business. Data can help you understand what’s working and what isn’t. And by understanding what’s not working, you can make changes to improve your business.
Data helps you focus your marketing efforts on high-quality prospects so that you are investing in leads that are more likely to purchase your products or services. It also allows you to identify areas where your website needs improvement so that potential customers find it easier to locate what they need when they need it.
The most potent data type for a small business is analytics, which measures how people interact with your website. These statistics provide important information about the habits of your audience (such as where they click, where they don’t click, and how much time they spend on each page) and enable you to track their online behaviors over time. (That is of course unless they disable their cookies!)
With this information, you know exactly how each area of your site performs and which pages should be improved or redesigned for better performance.
The importance of data analytics is everything for small business owners who wants to grow their company and get better results from their marketing efforts.
What Kinds of Data Analytics Should You Track?
There are three kinds of data you should start tracking if you want to grow your small business:
- Financial Data
- Customer Data
- Business Process Data
These are the most important forms of data analytics you can use to grow your small business. Financial stats are important so you know where your expenses are going and where the money is coming in from. What services or products produce the best profit for your small biz?
Customer data is important to know which customers spend the most and which spend the least. These types of stats can help you find more customers like the ones who spend the most.
And last, the business process data are projects: these are activities that you have never performed in your business before, whereas processes are activities that you do repeatedly. For example, making your daily cup of coffee is a process. You like to add the same ingredients in the same amount and make it every day.
Apply that method to your own business activities to see if they need to be adjusted or not.
How to Use Your Digital Footprint
The first type of data you should be collecting is your digital footprint. This includes knowing what people are saying about you on social media. Not only that but how often your website is being visited. Lastly, where your potential customers are coming from (like Google or Facebook ads).
You want to know what people are saying about you because it can help with customer service or PR.
You also want to know how many people visit your website to see if you’re getting enough traffic. Too little traffic means that people aren’t finding out about your business. And the last way you can use this data is to find out where potential customers come from and how they find out about you.
You want to know where they’re coming from so that you can work on increasing their number of visits by using that area in marketing efforts such as SEO, PPC, etc.
Importance of Data Using Customer Feedback
The first type of data you should be using is feedback from your customers. Whether it’s a traditional survey or an email, customer feedback is essential to understanding what your customers want and how they feel about your business.
This feedback will help you identify opportunities for improvement and offer better customer service in the future.
Conclusion of the Importance of Data
With the correct data and digital footprint, you can grow your small business. All without having to increase your store hours, hire more staff or take on more debt.
The data you collect from social media, email marketing, and surveys can give you a clear vision of your customer base and most popular items.
Then, by using your digital footprint, you can analyze your customers’ interests and preferences to sell new products that they want.
And with customer feedback, you can find out what works and what doesn’t, so you know how to adjust your strategy.
Lastly, how are YOU collecting statistical data for your small business to grow? Let’s discuss it in the comments below!