The old statement that “knowledge is power” still stands. Even more, in the information society of the 21st century. Only a few businesses have so far discovered the benefits of business analytics and data analysis, and those that have managed to improve their market knowledge, expand to new locations, and take advantage of the available information. You don’t have to be an analytics expert to make statistics and information become an important part of your business strategy. Below you will find a few reasons why you should start putting some systems in place to improve your market knowledge.
It is important that you focus on remaining competitive. Without knowing what other companies are doing, you can’t provide more value to your target market or develop and adjust your unique selling proposition. You can use industry reports, government white papers, or even academic research to make sure that you understand the market and your main competitors. Without a comprehensive market knowledge, you will not be able to improve your market position and share. Do your research and you can create more powerful marketing messages, too.
Understanding Customer Behavior
No matter if you are an online retailer or a business coach, you will have to find out what motivates your target market to buy. It might be trust, price, expertise, approach, or even ethical principles. You can conduct your own market research or distribute surveys to your customers and target market, so you can find a point of differentiation you can win their business with. Companies like House of Fraser and other department stores failed to notice the changes in customer behavior and focus on online operations. As a result, many of them got into financial trouble.
You don’t have to be a business analytics expert to spot trends early. If you subscribe to industry magazines and government publications, you will find that there is always more to learn. Whether you are looking to get ahead of the competition and implement some technologies that are likely to become popular in the marketplace or want to know whether to expand to a new market or location, you will be able to take advantage of trend mapping services.
Having Up to Date Financial Information
It is important that you keep an eye on your finances and get a snapshot of your accounts as soon as possible. The good news is that there are several great IT support companies able to help you improve the flow of your financial information. Whether you are getting a custom software developed for your business or are using online apps and software to get the information you need, you will be able to make sure that you are maintaining the financial health of your business.
When you have all the information at your fingertips, it is easier to plan short term and long term. If you know that you have bills outstanding and they are going to get paid into your account in a few weeks’ time, you can start a project knowing that you can afford it. Likewise, if you are aware of a new trend in the market, you will be able to adjust your strategy before your competition could act. Spotting trends early will give you a competitive advantage in any market.
Spotting Imminent Changes
You can also avoid business risks by gathering information about your customers, business partners, and suppliers. Make sure that you have trend reports and get in touch with industry leaders, so you can plan ahead and avoid making the wrong expansion and investment decisions that can ultimately cost you your business.
Making Smart Adjustments In Your Business Strategy
Having adequate data and information will not only help you formulate a business plan and strategy, but also adjust it according to the market’s behaviour. If you are a real estate investor, for example, you might decide not to rent out the property in a certain neighbourhood, but sell it, so you can invest in another region that has a higher return on investment potential in the rental market. Likewise, if you are looking to develop a new cereal, knowing that 20 percent of your target market is gluten intolerant or is on a gluten-free diet will help you.
Business owners who take advantage of smart data make better short term and long term decisions. Reduce the risks and spot expansion opportunities early by implementing business data analytics in your everyday operations and learning to analyze trends.