If you suspect you’re not using your small business data to the utmost, here are seven steps to get you on track.
UNDERSTAND WHY DATA MATTERS
On the surface, information about your customers and market is certainly useful. But it goes much deeper: careful analysis of data can be invaluable in identifying broad based, reliable trends central to your business’ success particularly for small businesses. You need to understand and analyze data to keep your customers.
YOU HAVE UNEXAMINED, USEFUL DATA
There are scads of proactive ways to gather data, such as customer surveys and other forms of feedback. That’s helpful, but don’t overlook information that you may already have at the ready. Customer purchase records, demographic data left by website traffic — these and other sources provide insightful material.
WHAT TO LOOK FOR
Start with your existing customer base. Chances are good that you have extensive customer information. Find out what they’re buying, how often and even where they’re coming from to do business with you — all telling tidbits that help you identify what they value and what keeps them coming back.
BREAK DOWN WHAT’S THERE
In large part, analyzing data is all about identifying trends and points of consistency. You can do that simply by watching your customers’ habits. If somebody cleans a dozen shirts a week, give that person a coupon for shirts. For a more comprehensive view, software products let you easily gather and break down data from a variety of sources, pinpointing common themes and other useful information.
PUT IT TO USE
Now that your data analysis has suggested common trends say the bulk of your customers have a certain income level it all becomes a matter of finding out where they are. Here, you can also go outside your existing base of information to collect demographic data from a variety of sources, ranging from census authorities to your local chamber of commerce. Basically, you’re asking ‘Where can I go to find people who look like this?’ Census data can provide you with neighborhoods with people that have the same sort of income and work in the same sort of jobs. From there, advertising and marketing can be targeted accordingly.
DO THE SAME WITH OTHER DATA
However important, don’t limit your analysis to customer data. Break down what you have about your competitors, product and inventory flow and other information. They can help suggest strategy for all sorts of issue staffing (your data may say business in the winter is too slow to warrant eight salespeople); sales forecasting (analysis suggests certain products simply aren’t moving at all); and even the physical layout of retail space
REMEMBER-IT’S DATA, NOT A DECISION
Used effectively, data analysis can be invaluable in suggesting all sorts of strategies and other decisions. But, never lose sight that, in the end, your data is, in fact, just a suggestion about what to do. It’s up to you to decide what to act on-and how to do it.
UNDERSTAND WHY DATA MATTERS
On the surface, information about your customers and market is certainly useful. But it goes much deeper: careful analysis of data can be invaluable in identifying broad based, reliable trends central to your business’ success particularly for small businesses. You need to understand and analyze data to keep your customers.
YOU HAVE UNEXAMINED, USEFUL DATA
There are scads of proactive ways to gather data, such as customer surveys and other forms of feedback. That’s helpful, but don’t overlook information that you may already have at the ready. Customer purchase records, demographic data left by website traffic — these and other sources provide insightful material.
WHAT TO LOOK FOR
Start with your existing customer base. Chances are good that you have extensive customer information. Find out what they’re buying, how often and even where they’re coming from to do business with you — all telling tidbits that help you identify what they value and what keeps them coming back.
BREAK DOWN WHAT’S THERE
In large part, analyzing data is all about identifying trends and points of consistency. You can do that simply by watching your customers’ habits. If somebody cleans a dozen shirts a week, give that person a coupon for shirts. For a more comprehensive view, software products let you easily gather and break down data from a variety of sources, pinpointing common themes and other useful information.
PUT IT TO USE
Now that your data analysis has suggested common trends say the bulk of your customers have a certain income level it all becomes a matter of finding out where they are. Here, you can also go outside your existing base of information to collect demographic data from a variety of sources, ranging from census authorities to your local chamber of commerce. Basically, you’re asking ‘Where can I go to find people who look like this?’ Census data can provide you with neighborhoods with people that have the same sort of income and work in the same sort of jobs. From there, advertising and marketing can be targeted accordingly.
DO THE SAME WITH OTHER DATA
However important, don’t limit your analysis to customer data. Break down what you have about your competitors, product and inventory flow and other information. They can help suggest strategy for all sorts of issue staffing (your data may say business in the winter is too slow to warrant eight salespeople); sales forecasting (analysis suggests certain products simply aren’t moving at all); and even the physical layout of retail space
REMEMBER-IT’S DATA, NOT A DECISION
Used effectively, data analysis can be invaluable in suggesting all sorts of strategies and other decisions. But, never lose sight that, in the end, your data is, in fact, just a suggestion about what to do. It’s up to you to decide what to act on-and how to do it.
