Most startups start struggling to survive from the onset because they have little understanding of their customer requirement which is essential for relationship building. This deprives them of unlocking potential growth opportunities, a prime directive for their success.
According to Big Data Made Simple, failure is most common for startups during years two through five, with 70% falling into the category. Another reason why startups fail is due to misreading market demand — 42% of startups are found in this case.
Source: Big Data Made Simple
Collecting and analyzing relevant data could be your lens to visualize and understand the opportunities, threats, trends, patterns, and success in your industry. Leveraging this before you launch your product or service will save years of stress and millions of dollars worth of investment.
Sadly, the costs and required resources in the data analytics journey has discouraged many startups in employing the data-driven approach, they believed that directing their little budget into advertising, marketing, and innovative product development is better. Unknown to them is that if the foundation and processes of their business lax, no other part will thrive.
In this post, I want to share with you the five simple reasons why data won’t fail your startup.
Helps you to make informed decisions
Data will guide your decision making. It will push you to generate actionable insights from your findings and guide you to impactful ideas. Every department in your startup must employ data so as to raise productivity and improve work processes.
However, you should endeavor to understand your key officers’ point of view in the stance of data-driven decision making as 38% surveyed staff members according to raconteur are informed skeptics, meaning that they apply judgment to analysis.
A simple decision of the time to run a campaign or on which social media platform to run it could make or may the results. With the customer development methodology, data will help you understand your ideal clients or target audience, where they are readily active, the tone you should employ in communicating them and how to deliver value to them.
Putting this to use will make your business endeavor seamless and you’ll be surprised by the positive outcomes of the deliverables.
Allows you to track business growth
Data presents you with the indicators to judge your process. It helps you set goals to layout your steps and measure your progress.
What are the metrics showing you the performance of your company website? Is it customer engagements with the articles on the blog or the amount of time spent to watch the video on your homepage?
There should be a scale to measure your growth. You can’t identify or refine this to your standard if you don’t invest in data.
That said, the motivation associated with growth metrics is healthy for you and your teammates as it puts you on the right track.
Guides you in creating targeted content and products
User-generated content works like magic. This is because they are content created as a result of what customers are saying,- their pains, hopes, and aspirations.
Data acts as your ears in customer conversation, this could be on social media, your customer service platforms or in surveys. It guides your marketing campaigns and allows you to tailor an advertisement to the market segment that will appreciate it.
From the insight derived from customers, you can anticipate market needs and develop innovative products that readily suit your customers. It helps you to easily segment your customer base using price and purchase analysis and to separate yourself from competitors.
It helps in operational efficiency
Bottlenecks slow down your operational process. You may not notice this until you begin collecting and analyzing operations-related data.
Data helps your startups to identify the potential threats and opportunities in your operations. It helps you streamline the process and maximize profits. By doing this, you’ll easily identify and remove the blockage and time-wasters in your growth funnel.
Also, it will improve individual productivity, efficiency, and the company’s overall workforce.
It reduces risk and fraud
Data can help you mitigate fraud and reduce risk in your company. It allows you to protect your physical, financial and intellectual property from internal or external threats and also delivers optimal levels of organizational security.
The predictive fraud propensity models present in analytical methodologies will alert and ensure you get timely responses that are triggered by real-time threat detection processes.
In addition, data management principles, if properly aligned with your organizational culture, will result in efficient and transparent communication and reporting of your work processes, which will hereby improve the overall management strategy.
With these few points, you should begin to consider employing the use of data analytics in your business activities.
By utilizing data in your company’s decision-making process and taking data management practices seriously, you will improve your flexibility and capability in the industry.
And you’ll be equipped with better insights, futuristic ideas, and financial performance that will make your startup exist for long.