Rapid advancements in technology over the past decade have expedited the availability of big data to small business. The days when big data was an asset exclusive to large corporations with significant budgets, and teams of specialist resources, are over.
All SMEs are aware that large amounts of data, and figuring out what to do with it, are not problems unique to big business. Economic uncertainty and reduced or flat budgets can bring digital transformation in SMEs to a screeching halt.
Before I joined Domo, and long before I started in SaaS, I ran my own business and worked in an environment where we had no big data tech and no data analysts or experts to help us. We lost so much time and opportunity while manually working the data, compounded by inaccuracies due to human error. This jeopardised the right business decisions and reduced efficiency within the business.
Today, small businesses have unprecedented access to data thanks to the emergence of cost-effective and cloud-based data analytics platforms. Appreciating data for more than mere compliance has a wealth of benefits for small businesses. These include forcing better decision-making, improving customer experience, increasing efficiency, and staying ahead of the competition.
Here are some of the best ways small businesses can use data to achieve their business goals, without breaking the bank.
- Identify business goals
In today’s data-driven world, data strategy has become just as important as business strategy. Small businesses should begin by determining their business objectives and the specific outcomes they hope to achieve with data. This could include enhancing customer experience, increasing efficiencies, cutting costs, increasing revenue, growing customer base, iterating on your product to better align with customer needs, or gaining an advantage over competitors. - Determine the specific data sources required
Once data goals are established, the necessary data sources can be identified. SMEs must determine which particular insights are relevant to their business goals rather than accessing all available data, in order to keep costs down. For example, do you need customer data, operational data, financial data, industry, or competitor data to achieve the desired outcomes? - Choose your data analytics tool wisely
Select a data tool that is customisable and tailored to your business use cases rather than one that is generically applicable. Invest in a data analytics platform that is user-friendly for small businesses, simplifies data, and displays it in an easy-to-use format as this eliminates the need for hiring a data analyst and supports faster adoption. It’s also important to invest in a scalable and affordable solution that can grow with your business. - Implement, enable and iterate
Enable data democratisation across your business by allowing all employees to have access to relevant data to help them do their job better. Invest in a solution that allows everyone to easily interpret and make decisions based on data, in a secure, governed way. Encouraging data-driven decision-making saves time, improves efficiency, reduces costs, enables better-targeted marketing efforts and ensures prudent allocation of financial resources, particularly if you are on a tight budget.
Being data-driven from the start enables long-term success when a small business grows and scales and ensures the platform you choose is providing actionable insights into the business’ needs. Understand that your data strategy is constantly evolving, as your business grows. Monitor your data on an ongoing basis to assess how it is helping you achieve your business goals and delivering sufficient ROI. Don’t just have data sitting there, ensure your business is constantly improving and adapting in accordance with your data and business strategy.
Small businesses that embrace big data, treating it as the asset it is, have a clear advantage over those that don’t, and the gap will continue to grow wider as more SMEs go on their own digital transformation journeys. Developing a robust data strategy and ensuring the data solution aligns with business outcomes will position small businesses for long-term success.
