We hear a lot about big data these days, but what about small data?
Entrepreneurs are constantly looking for areas to grow their business and improve performance. Every business possesses a lot of information about its customers, products, revenue, costs, etc.
The data, stored by your company website or app, can be a treasure trove of insights when used properly. These insights can help you discover new areas for business growth, untapped opportunities to streamline costs and increase profits.
Here are 5 ways you can use data that will help you grow your business faster:
Sign ups and Downloads
Sign ups can tell you a lot about the quality of visitors your site attracts every month. For mobile and web apps it is the number of downloads. Every business tests various marketing channels and campaigns to attract customers.
By looking at signups from various sources you can find out how users came to know about your business, and how your marketing efforts are performing. You can see which marketing channels bring in most signups or download, and focus more resources on them. After all, a sign up or download is the first step toward a paying customer.
Paying customers are users who like your business and find great value in your products and services. You can learn a lot of things (such as their location, age, gender, etc.) just by looking at their attributes in your customer database.
This allows you to group them by various factors (such as age, location, etc.) and provide more products and features tailored to each segment. You can even find out customer likes, trends and preferences to help manage inventory better.
For instance, if you see most of the customers on your ecommerce site are women aged 25-35, you can probably increase the inventory of women’s footwear and offer discounts to reduce the inventory of men’s footwear.
Revenue channels tell you which marketing channels bring in how much revenue. If you compare it with the number of paying customers through each channel, you can get a very good idea about the ROI for each channel.
For instance, you may realize that both social media and email marketing bring in similar revenues but social media brings in a large number of low revenue customers while email marketing brings in a small number of high revenue customers. This enables you to customize your marketing for each channel, based on the type of customers it brings in.
One of the most common reasons why businesses fail is that they run out of money. Therefore, it is necessary to identify all the sources of expenditure in your business and monitor them every month. This will help you see how your expenses change over time and quickly identify areas that are ripe for cost savings.