It is not uncommon to hear that data is the new oil, and therefore one of the most valuable commodities on Earth. To some it is a guaranteed money-maker, but to others it is a new resource with the power to change the world through disruptive innovation.
Companies of all sizes are taking notice, and data use is increasingly on the rise. Through their use of data, companies are able to revisit their business strategy, create new methods of revenue generation, and revamp their operations.
In this article, we’ll show you the main ways companies are using data to drive up their business value, and remain competitive in the modern market.
It is hard to find a more profitable way to utilize data than in marketing. This is why most (if not all) companies with the capability, are rethinking their marketing strategies and focusing them around in-depth data analytics.
Focusing on data in this way can result in a number of different approaches. One is by channel analysis, which allows companies (through advanced data analytics tracking), to see which platforms they are performing best on – whether that’s email, social media, or otherwise. Many companies will perform A/B testing off the back of this, to further increase their yield from various channels, and get rid of the ones that are failing to perform.
Another route companies can take is using analytics to tailor their customer interaction. By deep-diving into their customer’s various demographics (such as age, gender, and location), and their interaction habits and preferences, companies can begin to fine-tune their marketing efforts in order to be more highly specialized for that specific audience. This can be used for everything from what kind of email subject line your audience responds to most, to whether your clients prefer online invoices, to whether there are similar customer groups you could go after.
In fact, it has even been found that over 50% of customers are extremely likely to switch brands if they don’t feel like the company is attempting to personalize their marketing for them.
Companies are increasingly utilizing data analytics to better optimize their internal processes and operations. For example, healthcare providers, hospitals, and clinics process so many patients and records that it’s incredibly easy to lose track of each service they’re provided, which can make it difficult to retain patients and customers. As each procedure undertaken by an organization has an assigned code and other details, it is vulnerable to multiple errors.
By utilizing analytics, organizations can analyze data patterns that are associated with various codes, allowing them to flag patient invoices for any relevant errors of needed actions. Data analytics can also be used to improve ROI on collections by ensuring the right person is identified and contacted, and the channel used is the one most likely to regenerate a successful response.
Data analytics can also be used to determine what would be a solid acquisition and what should be avoided. There are reams of company information on the internet in the form of company filings, using the EDGAR system, and research reports.
Putting all of this information to good use is both time-consuming and easy to make mistakes. And with acquisitions potentially costing enormous amounts, you wanted to make your purchase decision as secure as possible.
For many businesses, using an intelligent platform like Flippa will make this process a lot easier, as it utilizes accurate valuation tools and an in-depth understanding of the market based on thousands of user data points.
Making Money Off Data Exchange
Another great way to drive business value is to exchange data. Truth be told, if you’re looking to monetize your data, then buying and selling it is the only genuine way. Among the many factors that influence data exchange are data ecosystems and data creation.
As more and more companies are embracing the digital age and budgeting accordingly, it is increasingly difficult to find a business without a website. It’s even more difficult to find one that isn’t taking advantage of one new technology or another.
Regardless of whether their methods are sophisticated or not, these same companies are creating data at an extraordinary rate – data that can be mined and turned into actionable, usable data. Internet providers, in particular, have taken advantage of big data analytics to reach new customer segments. Of the top 32 ISPs in the United States in 2020, more than 80% now have a big data team in house. In fact, it has been said that over 90% of all data ever created by mankind has been made in the last 2 years – and much of it online. But only 1% of it has actually been analyzed.
This new focus on data is hardly surprising, as industries tend to grow in the direction that market forces compel them. These days, the market is forcing almost all industries to pursue data-led strategies. Big data is estimated to be worth $247 billion by 2022, and with the internet continuing to grow in use rapidly with nearly 500 million more internet users now than there were just four years ago, there is no indication it is going to slow down.
As more and more data is refined, then it’s value to businesses will only go up. Although, it is worth mentioning that the more businesses store data, the more they make themselves the target of a potential data breach.
There are a number of ways that your business can use data to help drive up your business value. By utilizing data to engage with your customers, you can improve retention and drive up sales. You can also utilize your data to streamline operations or exchange it to push up revenues or access much-needed data for further optimization.