Why Small Businesses Need Big Data Analytics.
If you are one of the 28 million small businesses in the US, chances are you’ve heard of Big Data. But, if you are like many small business owners out there, you really don’t understand how conducting data analysis can help your business be more profitable. Guess what? You are losing money by not analyzing your data.
How are you losing money by doing nothing? Missed opportunity cost. Here is a short list of reasons you should conduct analysis of your business’s data:
1. It’s what your competition is doing- Big players in industries have the luxury of large budgets that are used on market research and internal analysis. The reality is you do not need a large expensive headcount to conduct analysis on internal data, if you are set-up correctly to do so.
2. Get a real view of your customers- Conducting your own analysis will provide an intimate dataset based on your customers, not generic industry trends. While it is important to pay attention to changing dynamics in the industry; sometimes at a large cost, you cannot put a price on better understanding your customers.
3. It saves you money- Analysis can help you spend smarter, not more, on carefully targeted marketing campaigns. If you understand the behavior of your customers, you can make more accurate decisions when deciding what will appeal to the characteristics of your actual customers.
Data analysis can give you very valuable information about your customer base. Analysis can help you understand buying patterns, metrics of your most profitable customers, cost to obtain a new customer, peak business times, and marketing campaign effectiveness.
How does this help you become more profitable?
You understand your true customer.
Get answers to the right questions you should be asking yourself. Do you know your most profitable customers? Why they buy your product? Is it price? Quality? Availability? All of the above?
Consider this: If you asked how your most frequent customers heard about your business and found it was through referral by other customers; you may want to launch an email marketing campaign offering incentives to customers that refer your product. This would be more effective in this scenario than increasing spending on paid advertising if your most profitable customers are coming from another channel. So, don’t waste the money on uncertainty.
There are infinite examples of why your small business needs data analytics. Remember the value is executing what works for your business and your customers. Further understanding of your customers is invaluable. Analytics are not one-size-fits-all. “You don’t have [to] understand heavy, technical explanations about how big data works in order to appreciate analytics. You just have to understand that analytics, done right, lead to actions that solve business problems” (Conley, Bunchball Blog). Martin Marketing Services can get you on the right path to understanding your analytics, and help you spend marketing dollars smarter. Let us help supercharge your marketing activities by creating strategies that are tailored to your business. Missed opportunity means missed profitability. It’s time to do something about it. Contact us below.