Using data to improve your business is still a fairly new development in hiring. This means that many companies are still figuring out how to properly implement data in order to maximize its effectiveness. Some businesses aren’t using data at all. Whether it’s because they don’t understand it or because they think they wouldn’t be able to use it, we think that’s a mistake. Here’s why big data for small business can greatly benefit you, no matter the size.
What All Businesses Lack
Here are a few benefits many companies aren’t using their data for:
Less than a third of companies are using website analytics.
Only 25% of companies are analyzing their online advertising results.
Only 22% of companies are making use of their social media analytics.
The lack of analyzing data is particularly prevalent in small businesses. The previously cited survey reveals that 75% of businesses with under $500,000 in revenue say they do not understand big data, (versus 55% of businesses above the $500,000 threshold which say the same). The good news, however, is that while many companies don’t understand big data, they want to use it. Again in the same survey, three-quarters of businesses (which includes many smaller ones) want to integrate data into their marketing plans, and two-thirds believe it will improve their company’s profitability. All these small businesses need is a push in the right direction.
How Data Can Help Small Businesses
So many small businesses don’t understand data, but want to use it. That’s great! But if you’re looking for data to increase your profits, you need to understand how the pieces fit together, what practical benefits using data can provide you.
What are these practical benefits? According to a 2014 survey by Constant Contact, here are a few of the ways small businesses say data helps them.
73% of small businesses say data helps them find new customers.
67% of small businesses say data helps them retain existing customers.
65% of small businesses say data helps them improve the customer experience.
44% of small businesses say data helps them segment their small marketing lists.
Your small business may not know how all of the data analytics work, but the benefits it provides can help your business in a number of ways.
Data is Data, No Matter the Size
If you looked over that infographic we linked to, you might have noticed it uses a term called “small data,” which the graphic defines as “activity-oriented data which is locally sourced, easily accessible and used to deliver immediate results.” This is notably different from big data analytics, which gains much more information from a wider degree of sources and collects it all to create a clearer picture of wider trends in the market.
The two might seem diametrically opposed when it comes to methodology, but in fact they can work perfectly in tandem. While small data (which businesses collect for themselves and use to enact immediate change) can help figure out specific needs for a business, big data can help paint a larger view of the business plan. Using insight gained from a larger data set reveals trends businesses can adapt to depending on market changes. For example, data on a smaller scale can identify why customers are leaving a business.
There are plenty of benefits small businesses can gain from using data, whether the data is big or small. Most companies aren’t taking advantage of either to assess the results of websites or social media analytics. This is a shame because the valuable information could help their business. When small businesses finally do get around to using big and small data, they’ll see just how much more they can grow.
Ready to take the plunge on using big data? Take a demo of Broadbean’s Big Data Analytics Suite, which can help your business find avenues for growth in talent you didn’t know were there. Sign up today for free!