Good data allows businesses to set development strategies and goals. Based on information and data that accurately reflect the market situation and consumers, businesses can make the best decisions.
Data has been long applied in business and increasingly asserts its essential role.
According to an article on Forbes, the use of data analytics is no longer limited to big companies with deep pockets. It’s now widespread. In 2019, 59% of enterprises were using analytics in some capacity. A survey from Deloitte showed that 49% of respondents said analytics helped them make better decisions. 16% said that it better enables key strategic initiatives. 10% could improve relationships with both customers and business partners thanks to data analytics.
In general, the application of data brings businesses 3 big benefits as follows.
First of all, leveraging high-quality data leads to effective decisions. It helps businesses reduce risks, which means avoiding unnecessary costs due to wrong direction.
Instead of just relying on judgment or experience, the leaders of an organization can absolutely opt useful data for decision making. They will avoid trial, error, restart, error and restart, which is both time consuming and costly.
However, we should keep in mind that poor-quality data can take a toll on a business’s finances. In business, a very small mistake can affect the budget. That’s why businesses need to choose high-quality and reliable data sources.
Create a data-driven strategy
Before operating, businesses need to make a specific plan and strategy. Data will be a solid basis to determine aspects such as potential customer segmentation, their behavioral and psychological characteristics, etc. The more detailed the strategy, the easier it is to make, and improve the service and product.
For example, when conducting a survey and seeing that tourists are increasingly concerned of sustainability, businesses need to quickly adapt. It could be using clean fuel or energy, reducing single-use plastic, and more.
Implement and adjust strategies effectively
Following a detailed plan and strategy, businesses need to implement and produce products. It can be tangible or intangible but must meet the needs and desires of the target audience. Because customer demand is a changeable factor over time, businesses have to adjust their products and services. To know if they are changing and how in consumer behavior and psychology, businesses should also rely on data from market tracking solutions.