Can you unlock the value in your spreadsheets?

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Premlin Pillay | Group Executive | Strategy, Data and Analytics | Mettus | mail me |


It’s time for Small and Medium Enterprises (SMEs) to recognise that using data and analytics is not as scary or expensive as they may think – and that the benefits can be significant.

The prevailing conversation around data, at first glance, appears to be big: Big data, big businesses – and big costs. And yet SMEs have as much, if not more, to gain from using data effectively. Many SMEs are intimidated by the process of starting their data journeys: It can often seem complex, time-consuming and expensive, but this need not be the case. And importantly, the benefits should outweigh the costs.

Importance of adopting data-driven decision-making

In an increasingly competitive marketplace, using data and analytics effectively can help businesses make smarter decisions leading to better customer service, increased efficiencies and ultimately help them become more competitive.

Research shows that companies that adopt data-driven decision-making outperform those who do not. Tom Davenport, a renowned expert and author on the topic, explains that data science – including analytics, big data, and artificial intelligence – has contributed to impressive business successes.

While we often associate data success stories with companies like Amazon, Google and Netflix, smaller businesses are able to move the needle drastically by implementing small changes that can be indicated by data. Sometimes knowing where to start is the hardest part.

Local restaurant chains may not realise this, but tracking customer feedback, reservation information, and sales figures all constitute data analytics. By analysing this information, they are able to identify popular menu items, peak dining times, and customer preferences.

Similarly, small tour operators can use data and analytics to improve their offerings and customer experience. By analysing customer feedback, online reviews, and booking data, they are able to identify popular destinations, preferred activities, and customer satisfaction levels. This helps them tailor their tour packages, optimise itineraries, and provide personalised recommendations to customers.

A fitness studio or gym could track attendance, class popularity, and customer feedback to identify peak class times, optimise instructor schedules, and introduce new classes based on customer demand. They could also use data to analyse customer retention and offer personalised incentives to increase loyalty.

Generating reams of useful data

As illustrated in the examples above, many businesses already generate reams of useful data covering customer, sales, product, financial and operational information. The trick is to organise and integrate it better so it can be interpreted meaningfully. And quite frankly, it is a crucial part of your toolkit to ensure your business stays ahead of local and global competitors.

Business decision-makers don’t realise how many data analytics tools are already at their disposal: At a basic level, you should never discount the business intelligence that resides in your Excel spreadsheets. The challenge here would be centralising and organising this data. Other tools could include invoicing systems, website analytics, sales receipts, and email marketing reports. These are all easy places to start with some guidance from an analytics provider.

The challenge is that many small companies see collecting, organising, interpreting, and using data as too big and expensive, so they simply close the book to think about it tomorrow. However, businesses that don’t have the same skills or resources as large corporates don’t have to feel scared or overwhelmed when starting their data and analytics journey. In fact, you don’t have to invest massive funds to begin reaping benefits. The trick is to start small, and start with what you have.

All this can sound intimidating, especially for businesses that may be concerned that they can’t afford expensive data scientists. Fortunately, there is the opportunity to outsource or partner on this important function with a data team that can scale up or down according to what your business needs.

In conclusion

We’re dedicated to helping small and medium-sized businesses use data more effectively. Importantly, even simple insights and changes made based on these insights can increase efficiencies, reduce costs, and get customer insights for improved service levels.

From understanding and growing customer bases to optimising processes and managing risks such as fraud and non-payment, we know the impact that the intelligent use of data can have on your businesses, and we’re there to guide you.

It’s important to start getting your data basics ready, as this field is getting more sophisticated and useful by the day, and this functionality is far too important to ignore. By laying solid foundations now, your business will be well-positioned to take advantage of more sophisticated analytics (such as predictive analytics), and machine learning in the future.

It doesn’t really matter what business you are in, the fact is your business already generates useful data that can contain the critical insights needed to move your business forward. It’s up to you to unlock this data, and the first step is to stop thinking of data as scary and analytics as expensive. Instead, start getting smart about it and stay ahead of your competitors.


 



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