December 1, 2018
Every day we encounter data on the Internet, and often we do not know much about our own. Every company with an operational business generates results that it can and should record. However, most SMEs are not sure where the actual value of a lead or sale lies - in the financial return or in the resulting insights for further business?
The answer is subjective and depends on the company's status, but often surprising. The fact is, a data-driven strategy will be the cornerstone for the industry-independent future success of the next big players.
Whether bakery, automaker, tech company or craft business, entrepreneurial actions create data. These can be sales, marketing results, investments, depreciation or similar. Every business leaves data footprints that can be understood and analyzed. The job of a data analyst is to bring these footprints together to produce results and provide more profound insights into the business. If the data is evaluated expertly, many operational errors can be avoided in the future and the business model optimized.
Amazon, for example, is regarded as a data expert and uses data analysis not only to optimize their own business but to understand an entire market segment. It is often forgotten that this is not just an online retailer, but much more a data company. For example, in the tender for the new HQ2 site, infrastructural and demographic data from application cities were requested. 238 US and Canadian cities have transmitted this data, which will be used by the tech giant for its benefit on the long run. Especially in day-to-day business, Amazon is well aware of which users are using the company’s products. Annually the company invests millions of dollars in . data evaluation and data technologies.
For SMEs data lives in the tools they use daily. Datapony’s data, for example, lives in Google Analytics, MailChimp, Intercom, and Hubspot. Merging and evaluating those data sources to can provide an advantage in understanding our day-to-day business. We believe that any company should be aware of its data. The small traces it leaves while operating are valuable if followed correctly. Before starting a data analytics project, one should answer three simple questions that help to create a general understanding that can be expanded with the further use of data analytics technology.:
Which type of person is the customer of the enterprise? Where does the typical client come from? How does the client get access to the companies products? Is it a financially strong or financially weak group of people? Is there any way the company’s target group can change in the future?
Say, which investments generate immediate returns? Entrepreneurs are required to keep accounting records, which is why gaining access to this kind of data is exceptionally easy. It is crucial that the information is properly arranged and collected. Extensive analysis of expenses and revenue can provide in-depth insights on investment efficiency.
A company with multiple business units can use a profitability analysis to highlight strengths and weaknesses. Strengths Alternatively, smaller companies should identify which services are the most profitable can be further strengthened and weaknesses repaired as far as possible.
Looking at the investment costs needed for data analysis, smaller companies are often deterred. A data analysts salary is often based at more than € 70,000 a year. These are costs that smaller companies often can not compensate for through business optimization. I'm sure if a company does not create at least a seven-digit amount in revenue per year, a data analyst should only be employed if the business model is data-driven. Alternatively, founders can acquire the technologies they need and engage in data analysis themselves.
If an entrepreneur is well aware of what he wants to analyze, freelance data analysts can be hired from online platforms.
Alternatively, Datapony is available, which provides revolutionary data consulting services for everyone. Interested companies can test Datapony for free to get an idea of its services. Here it is important to mention that users of Pro-membership can organize their four-hour consulting every month. Thus, our consultants are available flexibly for the preparation of analyzes or advice.
You can find more information about Dataponyhere