Why Data Can Be The Key To Business Success?

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Roman Reign

Business

5 Mins Read

January 18, 2021

Key to Business Success

Human history has seen countless conflicts and wars fought over valuable resources, such as food, land, and gold. Business experts have formed the trade deals and alliances between nations and superpowers based on these commodities. In recent years, another valuable and highly sought-after commodity has emerged: data.

Data is a specific form of information — usually including facts and statistics. Business owners use data for many different purposes, from military intelligence to technological developments. One area that data can be particularly useful in is business and marketing. Digital marketing specifically uses data as a vital component of its operations.

Data is useful for businesses for plenty of different reasons. In this guide, we will explore some of the ways that data and an understanding of how it works can really benefit a business.

Data And Marketing

Data and Marketing

Do you know how important data and marketing are when building a successful business? Below, I am going to discuss data and marketing in detail.

Data on the behavior and preferences of internet users (who may be customers or potential customers) is the foundation and the cornerstone of any successful digital marketing strategy. The most reliable predictor of what may happen in the future is often what has already happened in the past. For example, if an internet user has a history of engaging positively (including following on social media, “liking”, sharing, etc) with certain content, it is most likely that they will continue to do so in the future.

This means that data such as purchase history is of huge interest to many companies. E-commerce sites such as Amazon have an interest in persuading users to make more purchases of products using their site, so they usually use “recommendations” to advertise related products to users.

Additional factors which you must know about data and marketing

While in some cases these recommendations are unlikely to result in further sales (for example, a customer who has just purchased an office chair is unlikely to want to purchase another office chair any time soon), in other cases they can do so (for example, a customer who has just purchased a video games console is likely to want to purchase video games to play on it or extra accessories such as additional controllers).

Of course, the companies that are manufacturing the products for sale on these sites also benefit from this. Therefore while one is using the customer data in this way has agreed upon as a mostly mutually beneficial practice.

Data collection doesn’t only have the limitation to purchase history, although. Data that involves how one is using several other websites. Let’s say as an example, one can help marketers by painting a picture of which aspects of their site, content, or advertisements are successful. After all this is important to know which are not. The term “engagement” refers to a number of data points regarding how users use websites and online content.

Data Analyzing

For example, data that shows that 90% of visitors to a site only view one page on that domain can flag up the need for more engaging content or a change in the site’s design. Data that shows what parts of the world users are from, what their age group is, what gender they are, etc, can help marketers to identify their current demographic and whether or not it lines up with their target market.

The process of analyzing this kind of data is mainly known as data analytics, and there are various courses that teach this skill. Click here to find out more. Sites like YouTube, Facebook, and Google have their own inbuilt analytics tools, which can help digital marketers to develop an effective strategy.

One can use data from Google’s analytics tools to order to create effective SEO (Search Engine Optimization) strategies for business websites and blogs. Data such as what specific search terms one generally use sometimes extremely useful especially while optimizing written online content to rank highly on SERPs (Search Engine Results Pages). Not only that this also brings in as much web traffic as possible. After all, there is not much point in having fantastic products or services and a brilliantly designed website if nobody is actually visiting it!

Data and Product Development

Data and Product Development

Not only can data identify what customers and potential customers find appealing or unappealing about their brand, but it can also shape future developments in products or services. For example, finding out that 75% of customers had positive reactions to a particular product. But only 57% of customers had positive reactions to a different product in that range. This actually helps to influence which products business owner has to focus on. After all this will help you to know which products one user must change or discontinue.

This kind of data can often be collected using direct and open methods such as conducting market research surveys among customers or potential customers. In some cases, customers may even provide this kind of feedback without being prompted, such as by contacting a company directly with a complaint or praise or posting publicly accessible reviews online.

Most large companies have teams of staff solely dedicated to running social media accounts and communicating directly with customers or people interested in the company’s products or services.

Keeping Data Safe

Keeping Data Safe

Unfortunately, not all methods of collecting useful data are honest and ethical. The fact that data is such a valuable commodity means that data theft is common. Data breaches and hacks happen all of the time and have even happened to huge companies like Sony. Data theft is sometimes carried out by rival companies, or even by professional cybercriminals who can sell stolen customer data for vast sums of money on the black market!

The fact that data is so valuable and prone to theft means that it is important to sufficiently protect the data that you already have. Investing in strong cybersecurity tools and measures is vital, especially if your business stores any form of potentially sensitive customer information. The theft of personal data can lead to a loss of customers and a damaged professional reputation for a company. The larger your company and the more valuable the data it stores, the bigger of a target you may be for data theft.

Understanding how to collect data, use it effectively, and protect it from theft are all essential aspects of running a successful business in the modern world.

In Conclusion

In this article, I have discussed what data can be the key to business success. Above all, organizations always have to be more careful about data management techniques. Of course, this is all about securing confidential customers and avoiding any legal issues from arising. Yes! You guessed right that data management always involves developing and maintaining records and updating new information. 

I hope you liked this article. If you have queries, please comment below!

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Roman Reign

Roman Reign is a passionate blogger. He loves to share his thoughts, ideas and experiences with the world through blogging. Roman Reign is associated with thelegalguides, thedatingdairy, thebitcoinmagazine, essaywritingguides, thecbdmagazine, thecasinomagazine, getmeseen, toppreference, bigjarnews, theparentsmagazine, thesportsmag, thepetsmagazine, worthytoshare, gossipment & okeymagazine.

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