Meister Eckhart wrote, “The price of inaction is far greater than the cost of making a mistake.”
One thing I hear from small business owners over and over is that they “don’t know what to do” with data collection, manipulation, or just data in general. In today’s data-driven world, why shouldn’t you care about the data of your customers, your sales, your profits, your costs, your competition, your strategy and your long-run goal?
More importantly, don’t you want to know how these data interact each other and what the data says about how you run your business?
When it comes to customer data, you need to know why they are buying your product or services. Is it because of the lower prices? Convenient location? Flexible hours? Free shipping? Or superior quality of your product or service?
Knowing why your customers are buying your product allows you to take action to better position your business, highlights your comparative advantage, and draw in more customers. All through simple data mining and analysis.
This is something big businesses have known and done for years, but many small and medium business owners still don’t collect data, thinking it’s either too expensive or just not necessary. But they’re wrong on both accounts.
First, without data collection, you can never know just how many potential customers, and how much potential income, you could be leaving on the table. It’s why we started this blog with a quote about inaction, because the truth is that doing nothing often costs more than doing something.
Secondly, in today’s increasingly connected and digitized world, data collection has become important to just about every business. If your competitors know your customers better than you do, who has the competitive advantage? Not only that, but if you’re inadvertently throwing away money that could be better used expanding your staff or marketing your business, you’re putting yourself at a disadvantage against competitors who have streamlined through data analysis.
Data analysis does more just give you ways to bring in more customers, it can drive down costs and crank up productivity. But without collecting data on your overhead costs, it can be impossible to decipher the parts of your business that are doing well, and the places that could use improvement.
If you’re in business and you aren’t collecting customer or production data, but want to know how your data benefits your business, please contact us today. We can ensure you’re the one with the competitive edge and actionable data.
Check back on our blog for more tips and suggestions for managing data for your business.