How to Build a Data-Driven Business Strategy

What is a Data-Driven Strategy?

If you want your brand to leave a mark on today’s competitive market, you’ll need at least one data-driven marketing strategy. A data-driven strategy that provides evidence of public behaviour and public opinion.

Why Do You Need a Data-Driven Strategy?

Having a data-driven strategy for your business can help you:

• Improve sales
• Cut costs
• Increase productivity
• Process more data
• Understand your customers
• Reduce risk
• Compete with other businesses

Improve Sales

Data-driven strategies increase sales and customer loyalty. When a customer visits your website, they leave behind valuable information, such as their preferences and beliefs. You can use the insights you receive from your data-driven strategy to help you tailor your products and services to best suit customers. When customers have an excellent experience using your site, they are more likely to return to your website, which helps establish customer loyalty.

Cuts Costs

Like every business owner, you want to save money. Having access to the right type of information can save your business hundreds of dollars each month and thousands of dollars each year. The right information, such as product patterns and servicing pricing, can help you take the necessary steps to reduce business costs.

Increase Productivity 

A data-driven strategy can help find a variety of revenue-generating opportunities, as well as optimising production and boosting operational efficiencies. This type of strategy can help you determine your business’s inventory needs, which gives you a head start to overall success.

Process More Data

The more data you can process, the more access you have to insightful information. With the help of artificial intelligence (AI), your business can collect a lot more information, and if you aren’t careful, it can complicate your data-processing efforts. If your business utilises machine learning, AI, and has a company that specialises in data, such as BizRamp, you have nothing to worry about. Processing data will not be an issue.

Understanding Your Customers

When you understand your customers, you can customise your services and products to their needs. If your business is like most businesses, you have a general idea of who your target customers are and how to market your products and services to them. Data strategies provide in-depth insights about your current customers and provide the data you need to grasp the attention of potential customers by knowing the type of products they like.

Reduce Risk

As a business owner, you take a lot of risks. Using data analysis helps you reduce the amount of risk your business accepts and allows you to choose which risks are worth taking. Introducing new products and services have a fair amount of risk, but data analysis helps you determine which products and services you should introduce to the public and when you should introduce them.

Compete with Other Businesses

You’re not the only business owner in the world, and because of this, the business sector is highly competitive. Many businesses provide the same services as you, so understanding the needs and wants of your customers gives you an edge over the competition. Asset failure and downtime can significantly be reduced by using a data-driven strategy with data analytics.

How to Build to Data-Driven Marketing Strategy

The three components of successfully building a data-driven marketing strategy include:

• Choosing the right data
• Building prediction models that optimise business outcomes
• Transform your company’s capabilities

Choosing the Right Data 

Choosing the right data involves many different components. Over the years, data and the way it’s modelled has changed dramatically. Combining data gives you multiple views of your business environment. In previous years, many data points were invisible. Today, with access to more data, your business can improve its operations, strategies, and customer experiences.

Sourcing the data you collect creatively is a primary factor in choosing the right data. You probably have tons of data you can use, but don’t know how to use the collected data to make necessary and important business decisions. Every business has problems. How you handle the problems that arise are what makes a difference. The key to being successful with data is to take a comprehensive look at the information the data has to offer. When you’re looking at your data, pay attention to the small details while looking at the big picture. You need to be as specific as possible about the problems your business faces and how you plan to solve them.

You also need to have extra support from your IT team. If your IT support lacks in any area, it could affect different data factors, such as analysis, sourcing, and storage. The first step you need to take is to address your short-term big data needs. Prioritising the needs of your business means you have to pick apart the data you have, assess it, and determine which data sets are the most relevant to use for analytics.

Building Prediction Models That Optimise Business Outcomes

Data and analytics are both needed to make business predictions and determine business outcomes. Data provides essential information that can help your business climb the success ladder, but the analysis is the missing puzzle piece that allows your business to pass the competition. Your business is made of more than data, and when you’re building a model, you need to identify different business opportunities. When you identify at least three business opportunities, you can start to use the data you find to help you determine how you’ll use it in the model for the best results.

Transform Your Company’s Capabilities

Your business may be considered a powerhouse for many things, but if your company fails to evolve with technology and customer needs, your business will be at risk of failing. Transformation requires change. A lot of project managers don’t trust big data or don’t understand it, so they don’t use it. Transforming your business’s capabilities requires your entire business team’s thought process. To transform your business successfully, you need to:

• Develop analytics that is relevant to your business
• Use tools that include analytics information
• Develop capabilities that help you exploit big data

If data is causing frustrating hassles for your business, let the expert marketers and data engineers help put your business on the path to success. Get in touch with us today!