With data being touted as the new oil, almost every organization is exploring ways to drive value from their data. Small and medium-sized enterprises (SMEs), which account for 98% of all businesses in the U.S., are no different. Given that smaller organizations generally have fewer resources than larger corporations, however, SMEs must take a slightly different approach when leveraging data to drive growth. Even so, there are many ways in which SMEs can use their data to drive growth. By identifying your company’s key performance indicators (KPIs) and creating processes to track these metrics regularly, you can leverage your data to identify areas for improvement or growth opportunities sooner rather than later. Here’s how you can do that and more with your organization’s data…
Focus on your company’s KPIs
KPIs, or key performance indicators, are used to measure the performance of a business on a particular project or initiative. While not all KPIs are suitable for all organizations, some are relevant for almost all companies. These include financial metrics such as revenue growth, return on investment (ROI), net profit, and earnings per share (EPS). You can also track operational metrics such as customer retention rate, customer acquisition cost, customer satisfaction rate, and employee retention rate.
Create a data-driven culture
As we mentioned earlier, data is only as valuable as the insights we take from it. This is why it is important to foster a data-driven culture that focuses on business intelligence and data analytics as early as possible. Incorporate data into your weekly or monthly meetings by asking questions like, “What KPIs will tell us if this strategy is working?” or “What metrics are we tracking that can be used to drive value from our data?” This will help you and your team become more adept at taking action based on data.
Leverage your customer data
There are numerous ways in which you can use your customer data to drive growth. You can analyze purchase history to track product demand, create customer segmentation models using data from customer interactions, or use customer lifetime value (CLV) calculations to prioritize customer acquisition efforts. By gaining a deeper understanding of your customer base, you can create more targeted and relevant customer experiences that are likely to drive customer retention and, ultimately, increase revenue.
Track your most important metrics
As data scientists and analysts, we understand the importance of tracking metrics that provide insight into business growth. However, not all of your team members will be as familiar with these metrics. You can, however, help your team members understand the importance of tracking certain metrics by using data visualization and sharing examples of how the data was used to drive value in the past. For example, if you are tracking customer retention rates, you can use this data to find potential customer churn areas.
Use machine learning to find growth opportunities
If you’re looking to find growth opportunities in your data as quickly as possible, it might be time to consider developing a machine-learning model. By using data warehousing services, data analytics, and machine learning to identify patterns and trends, you can uncover new and valuable insights that might have otherwise gone unnoticed. You can then use these insights to inform your strategy and provide the foundation for continuous growth.
Data is the new oil, and every organization is exploring ways to drive value from their data. SMEs, however, have to take a slightly different approach than larger companies as they have fewer resources. The good news is that there are many ways in which SMEs can use their data to drive growth. By focusing on your company’s KPIs, creating a data-driven culture, leveraging your customer data, tracking your most important metrics, and using machine learning to find growth opportunities, you can ensure your organization continues to grow.