As technology advances, we're able to search, collect and store vast amounts of data.
Data plays a huge role in growing your startup business. Every connection with technology generates new data that might help your startup.
When this data is combined with intelligent algorithms that can analyse it and identify interesting patterns, you can use it for your business strategy, product improvements, marketing campaigns and making better decisions.
This article explains why data is essential for your startup, how you can use the right data to improve your startup efficiency and the most-used data collection and analysis tools you can use for your startup.
Why data is essential for your startup
Data is an essential resource that aids you in making informed decisions. It offers you a chance to drive change and make decisions that will result in positive results that will help your business develop and advance. It aids in the understanding and improvement of company operations, allowing you to save money and time.
Data also helps you gain a competitive advantage. Data about your competitors may help you analyse where you're falling behind and strategise how to get ahead.
It also helps you in better understanding your customers: their wants, where they're from, how much they're prepared to pay, the type of products or services they're interested in, their likes and dislikes about your products or services, and, most crucially, why they're leaving.
This data can benefit your startup in the long term by clearly identifying areas for improvement and where more money should be spent to gain the most customers and maximise ROI and profitability.
Ways on how you can use the right data to improve your startup efficiency
1. Optimising workforce
Increasing employee engagement
The right data can improve your startup's efficiency by increasing employee engagement.
Employee engagement is a significant indicator of a company's turnover rate and a vital productivity factor. Even slight improvements in overall employee engagement can have a considerable impact.
You can use data to improve engagement by using a variety of surveys anonymously to determine what your employees care about most and have the opportunity to voice their opinions.
Employees who are hesitant to speak up may express themselves entirely and may also tell problems that are affecting their morale and engagement. Using this data, you can ensure that your employees have the best on-the-job experiences possible and greater employee engagement and satisfaction.
Creating targeted employee development plans
You can create targeted employee development plans to increase your startup's efficiency with data.
You can use data to identify your top performers to figure out how to assist other employees in imitating their success by defining KPIs to monitor employee performance, particularly at the departmental level, which is the best place to start.
Even though your employee development plan will affect your entire organisation, it works by helping one person at a time.
Then, pick the top performers for each department and research their work habits, personality attributes, and educational backgrounds. This should enable the formation of a defined persona (same as a client persona) that incorporates the characteristics of the ideal employee. Employee development programs can then be shaped using these identities.
The goal is to provide employees with training and other resources to increase their productivity and catch up to their high-performing peers. A tailored training path for each individual is preferred to provide optimal efficiency in the training process.
Finally, the employees of the company should be optimised for maximum efficiency. Additionally, the same personas might be utilised to drive future employment decisions.
2. Conducting financial planning and analysis
Data can assist you in predicting and planning for future financial success. Doing this helps you avoid wasting money by ensuring that it is always in the right location at the right time—the processes required to use data for that purpose fall under financial planning and analysis (FP&A).
To use FP&A, a large amount of data must be collected in real-time, and then the data must be interpreted in a relevant manner. You can then utilise it to predict sales, growth, and market opportunities in time and take advantage of it. FP&A also supplies the data needed to acquire additional funding from investors and banks, directly impacting your company's ability to innovate and grow.
3. Increasing ROI
Another method you may use data to boost efficiency is to evaluate the return on investment (ROI) of their marketing efforts and look for ways to increase it.
Most businesses acquire data from various sources - the company website, CRM system, marketing automation software, social media platforms, and more. When properly utilised, all of this data will provide you with insights that can be used to generate more profitable advertising campaigns.
Data helps determine which marketing techniques produce the best results and which should be changed or discontinued to improve your startup's efficiency.
4. Measuring progress
Data can assist your startup in determining its objectives. It can help in tracking and monitoring progress. Setting goals and tracking progress without metrics would be challenging, allowing startups to improve and increase efficiency.
It will help you keep track of your startup's development and determine whether your current efforts yield the desired outcomes.
Most-used tools startups use to gather, interpret, and act on data.
Here are five examples of the most-used tools used in data collection and analysis that you can use for your startup:
1. Google Analytics
Google Analytics is a web analytics software that tracks the performance of websites and apps. It provides over 200 metrics to assist all types of businesses in making better decisions.
Google Analytics gives you unique insights into the effectiveness of your marketing, content, products, and more. It tracks every step of your users' behaviour, including where they came from and where they left.
Ahrefs is one of the most well-known toolsets for backlinks and SEO analysis.
Ahrefs is primarily used to assess the website's link profile, keyword rankings, and SEO health. You can also conduct keyword research for Google, YouTube, and Amazon. Many individuals use Ahrefs to locate content that has performed well on a specific topic (in terms of social shares or links).
Kissmetrics is a web analytics tool that provides crucial insights and user interaction data for your website.
Kissmetrics creates a clear picture of your visitors' activity on your website. It collects data on each visitor's acquisition, getting the data you need to simplify better product and marketing decisions.
4. IBM Watson Analytics
IBM Watson Analytics provides advanced analytics benefits quickly. It enables data exploration, automates predictive analytics, and allows easy production of dashboards and infographics.
5. Google Trends
Google Trends is an accessible data exploration tool that allows businesses to see what their target customers are interested in and curious about in real-time.
Google Trends allows you to find the best keywords, and it offers you the option to add one or more terms and phrases to compare them to. This, together with a visual chart, can assist you in determining which keywords related to the same topic provide the best SEO results for your company.
Google Trends also keeps you up to date on industry developments and increases the likelihood of website traffic: by learning about the most popular topics and queries, you can create content around those topics.
Data is an essential asset in your business.
From improving your relationships with your employees to boosting sales and measuring your progress, analysing data is one of the most significant and beneficial steps that you can take. It's an advantage that no company should ignore.
If you want to know more about how data helps your startup, you can talk to someone from our team today.
Rest assured that we'll get in touch with you to answer all your questions.