Small Business Success and the Importance of Data
Technology has pushed many industries forward and brought in new advancements that drastically changed processes people had used for years. The Internet was the first technological boom that heralded massive changes across the world’s industries, but as the Internet and other technology continue to grow, more changes have arisen at the same time. For years, only large businesses with considerable resources and data-specific businesses had access to wide-scale business intelligence or consumer data, but now any business can collect and use data as they see fit. Small businesses now have access to the same data tools as global brands with far more reach and resources. However, just because data is out there and available does not mean it is always used correctly and used in the most efficient way. Data is not something businesses can afford to ignore anymore, but all businesses should also take the time to learn how to use data properly so they can reap the most benefits possible in a competitive market that is increasingly squeezing out small businesses. While a proper data management course would cover more details, below are some of the most important things for small businesses to know about the importance of data in today’s modern ecosystem.
Data Collection Methods
Before any business can put data to work, it must have enough collected data to use the information correctly. There are a range of ways a business can collect data, and many of them are free. Many businesses likely already or could easily collect large amounts of data from normal business operations. Every time a customer places a shipped order, they typically enter all their contact information which can then go into a business’s customer database. Even if customers don’t buy anything, anyone who signs up for an email newsletter or participates in a survey or quiz has willingly handed over valuable data. Many people will also freely post their information on social media that any business can collect and use for better marketing. A business can also use data services or pay for access to data other businesses have collected, but small businesses typically do not need to spend that kind of money on data banks.
Protect Your Data
Once you have data, it is absolutely vital that you protect your hard-fought assets. Just because you store data in a database does not mean your system is secure and will stay secure all the time. Monitoring programs will alert you to changes, errors, attempted breaches, successful breaches, access logs, and more, depending on how closely you want to keep an eye on your system. Whether you go all out with a Cerner Citrix program or rely on an in-house employee, you must protect your data and ensure it does not disappear or corrupt while no one is watching.
You must also know the difference between something going wrong with your data and natural data decay that is sadly unavoidable. Data will become inaccurate and useless over time as people move, change phone numbers, change names, and more. Noting and correcting data decay is part of routine database maintenance, but checking what data is no longer valid can be a tedious process. The more regular you are with database management, the shorter maintenance sessions will be each time, which saves some employees from the boredom of checking datasheets.
How To Use Data
Once you have data and a way system to ensure you can keep your data, it is time to put the data to work. Data may look like nothing more than letters and numbers on a screen, but data can help you make better marketing materials and send the best ads to the right people, all to bring in more sales. Quantitative and qualitative data is all valuable as it can reduce errors, tell you more about your audience, and better serve customers what they want to see from your brand. You can target ads to customers based on geographic location, purchase history, age, income, gender, family status, and more.
However, you must use business data responsibly and not invent your own conclusions or use faulty data to get the result you want. Data is never always correct, and it should be used as a tool, not the only answer for information. Data is a powerful modern tool, but businesses still need to think critically and consider their options rather than following what the data says without understanding it.