Small Business Data: Why is it important?
Data Key Piece for Success!
While most new businesses are aware that they need to keep an eye on their income and expenses, many don’t realize that collecting and analyzing data is also a major key to their success. In order to channel your resources most efficiently, your company needs to utilize the data that you have access to. Without being able to recognize specifically why your company isn’t making the kind of money you think it should, it will likely be difficult to lead your company to success.
If you aren’t looking at data, you won’t know how to improve to serve your clients best
What kind of data should you be collecting?
Collecting data is an integral part of designing business models and allocating resources. But what kind of data should you be collecting? Business owners are busy, and the more things on your plate, the more difficult it is to focus on the important tasks. But that’s exactly why data is so useful. It allows a business to analyze its processes and determine what’s functioning well.
There are two kinds of data that should be measured when making decisions about how to run your company: one is data based on the goods/services you provide and your customer transactions, while the other is your online data.
Data Anaylitics allows a business to analyze its processes and determine what’s functioning well and what needs to change
Costs of Goods and Services
This first kind of data has a wide range of data points. This is important because it helps you to track, on a tangible level, how much money you’re making. There are many components to this kind of data: which of your goods and services did they purchase? What was the total cost? How much time went into helping the customer? All these aspects of a purchase help to define what’s really going into a sale and what’s coming out of it. As a business owner, it’s important to compile all the relevant data to ascertain the true profits of a business, not just the dollar sign attached to the deal. A company must have a strong grasp on all that they are putting into a sale, otherwise they can easily overspend, or overcharge.
A common error when selling a product or service is to discount, or completely overlook, the amount of time put into a task. Think about washing your car. It takes you an hour or so to wash it, and another half hour or so to wax it. It only costs eight dollars to get it washed at a carwash, and that takes about fifteen minutes. Business owners value time, and so you must learn to set a dollar value on your time, and not waste it doing things you could be paying much less to have done for you. Keeping track of how hours are allocated in a business is important. By outsourcing some of the non-cost-efficient tasks, you can save money and earn peace-of-mind!.
Online Presence Data
The second form of data collection is your online presence: specifically, data concerning your website. There are massive amounts of data available to website owners, but it’s useless if it’s not put to work providing you with valuable information. Many companies use this data to track how their website progresses, and then decide where to steer their focus. This can be crucial to increasing website sales for your company. If your website isn’t meeting your customers’ needs by directing them to the appropriate pages for purchases, your website isn’t functioning optimally.
Are you looking at how users flow through your website?
Tools and Resource
Resources like Google Analytics exist to track your website’s progress, and this information can enable you to make changes that will better serve your customers. Examples of Google Analytics data include: how many people visit your website, what pages they view and how much time they spend on each page. If your objective is to get them onto a specific page but no one is making it past your main page, tracking your analytics can give a great view of items to adapt, encouraging visitors to explore more of your site.
By incorporating data tracking and analysis, you will have an ongoing, clear picture of your website’s functionality and service to your customers. Sure, it takes a little getting used to, but I think you’ll find it well worth your time as you make changes and see the visible results.
Remember, you have more information ready to work in your favor than simply counting items sold, income, and expenses. While these are important, make sure to spend some time on the crucial data that can move you from being an average company to being an excellent company!
I am driven by efficiency and want to see small businesses succeed through efficient use of data. Data analysis establishes trends and allows teams and businesses to serve customers & clients more effectively.
09April, 2020Small Businesses are one of the hardest hit by the COVID-19 Pandemic Since Pier5's creation in 2016 we have been dedicated to the health and survival of our business community. The C.A.R.E.S. Act is the government's emergency stimulus program to help our...
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