Collecting and proper analysis of market data are one of the biggest challenges every organization faces. The most important thing is that the data should be converted into valuable information that will support strategic decision-making. In practice, however, it is not always so. Although companies obtain data from many sources, they do not bring any value to the functioning of organizations.
Intuition and experience versus data – what to choose?
Companies collect extremely detailed data – from customers, suppliers, business partners, and competitors. However, according to a study conducted by BI-Survey, 58% of the surveyed companies confirmed that at least half of their business decisions are based on intuitions or experience instead of data. The study also shows that companies use on average only 50% of the information available to them when making decisions.
What benefits can companies have from changing their approach to data usage?
1. Effective implementation of the adopted goals
Correct data analysis brings tangible benefits to every unit operating within a given company. However, to make the information obtained in the course of analysis useful, it should have a specific context – in relation to the adopted goals and further vision of the company’s development. Basing the business model on the data makes each of the company’s departments know exactly which of the adopted plans have been implemented and which are still necessary to be worked on. Continuous optimization of ongoing projects improves profitability.
2. Efficient identification of opportunities and threats
There are many obstacles to the success of your company. The identification of threats before they really appear increases the chances of completing the plan. The same applies to the opportunities. Identification of the market niche, discovering the upward trend, are ideal opportunities to increase the company’s revenues. By analyzing data, it is easy to see the new opportunities for the company, as well as the potential threats.
3. Better identification of customer needs
What do you really know about your current and potential customers? What channels do they choose to interact with your brand? Studying customers’ behaviors allows for precise targeting of promotional campaigns and tailoring the sales offer to their needs. With appropriate and relevant data, it is possible to make informed decisions about building sales funnels.
4. Improving sales results
Modern sales strategies require a very broad view of the functioning of the company. Collecting accurate and reliable data allows for better management of the whole sales process. Clear identification of the goals and their effective communication to sales teams often decides about the company’s stay on the market. Thanks to the analysis of data, not only managers can control the salesmen and the effectiveness of their work, but also the salesmen themselves have constant access to information on the structure of the products sold, the cyclicality of purchases or customer preferences.
5. Better internal communication
Making strategic decisions often requires the analysis of data from various areas of the company’s functioning. Currently, business intelligence systems are used for data analysis, which definitely streamline the process of converting them into valuable information. They provide access to data in real time, regardless of the place where we work and for all people working in a given company. This significantly improves the communication process between employees and shortens the time necessary to make a decision. You can read about the benefits of implementing a business intelligence system in our company on our blog.
Converting data into valuable business information should be an essential element of the business culture of each company. The working environment, as well as market trends, are constantly changing. Only those who can combine the previously acquired knowledge with current data will succeed.