Running a successful
business takes time and patience, and certainly doesn’t happen overnight. But
one thing that all thriving companies have in common is how they prioritize the
collection and analysis of data.
Data comes in all shapes
and sizes and can be used in a variety of ways to help a business succeed. By
helping to improve decision making, providing a better understanding of
customers, and advancing operations, data collection can be a critical part of
the growth of your organization.
Here are some examples
of the data types that should matter the most to you and your business.
Analyzing and Comparing
It doesn’t matter how
great the product or service you’re selling is — if the market isn’t primed for
you to be successful, or you aren’t following trends the right way, you’ll find
the road to business success will be much more challenging than you had hoped.
This is where the benefit of analyzing and comparing market data comes in.
Take the real estate
market, for example. In commercial real estate, the value of a property is not
decided merely based on how much the buildings cost to construct. There are
several variables involved with real estate values, including vacancy rates,
the price per square feet, transit walking scores, and local economies in the
area. Ignoring these data sets can lead developers and business owners into
making poor decisions on the properties they acquire and the locations they
choose to be in. On the other hand, real estate owners who intelligently
collect and analyze this data ahead of time are typically much more successful
Once you’ve researched
your target market and have done the necessary work to conceptualize a new
product design, bringing it to life for your customer base can be both an
exciting and stressful time. However, before you begin the manufacturing
process and start distributing new products to your partner base, it’s vital
that you clearly understand design patent laws and ensure you aren’t infringing on another person’s
competitor research isn’t just about learning the price points of the products
or services they offer. Thorough competitor analysis — especially when your
competition has similar products — can help you ensure you’re meeting all legal
requirements when bringing your product to market and will keep your business
safe from any legal action down the road.
Understanding Your Key
external factors that affect your business is an essential aspect of growing
your organization successfully. However, there are other considerations where
data collection can help you develop your business internally by focusing on stakeholder approval and buy-in. Stakeholders are an important part of every
business, but many times they can be viewed as potential roadblocks to newer
investments and expansions. By analyzing your stakeholders and understanding
the critical steps necessary to get their buy-in, you’ll be able to gather
their critical input while also building trust in the future decisions you
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Creating positive user experiences has become an essential part of building a brand that
customers keep returning to. From start to finish, business owners need to
develop a strong understanding of the things that matter most for their
customer base and subsequently work to implement them effectively. One of those
considerations is how difficult or easy it is for customers to purchase your
products and services.
Easy access to smartphones and tablets has completely changed how modern-day consumers source and purchase their products. Businesses should be actively monitoring their e-commerce platforms to get a better understanding of how their customers prefer to shop and make changes to their operations to support as needed. As this data is collected, strategic decisions can be made regarding the best third-party solutions and integrations to use in support of seamless mobile shopping experience and smart checkout services.
Of course, one of the
most important types of data you should be collecting and analyzing regularly
is your revenue streams and how they respond to changing conditions. However,
every successful business needs to balance both revenue and profitability when
investing in new avenues of growth while ensuring long-term sustainability.
It’s essential to
collect and monitor the revenue and profitability of your business separately.
While gross revenue by itself may be an identifier that your business is moving
in the right direction, without measuring profitability, you could be putting
yourself and your business in a compromising position. This is especially the
case if you don’t take into consideration all of the necessary operating costs,
as well as business tax requirements, security expenses, and other annual
investments. Actively measuring both the revenue and profitability of your
business and creating key performance indicators around the data sets will
ensure you’re seeing the right amount of growth over time with sustainable
margins to support it.
Regardless of the
investments you make to grow your business, without data insights, you have no
way of knowing if the decisions you make are moving your company forward or
setting you back. But by taking the time to analyze essential market conditions
and how they can impact your revenue and profitability, you’ll improve your
business’s chance for success now and in the future.