Why data is essential to staying competitive

In today’s tech-happy and increasingly automated world, data capture is becoming the competitive edge that sets winners apart. Rightly so, too. It says a lot about a company when it puts real world data in the crosshairs, rather than their fixating on their own assumptions.

This is the very thing that has made tech companies like Google so staggeringly successful. Their business is data and analytics.

More and more, users are regarding the extensive, intrusive and opaque data harvesting of tech companies with distaste. Ethics needs to be top priority for any company gathering data. But what’s often overlooked is that this practice is exactly what has brought us the modern internet.

What would the internet be without Google Search? Without YouTube? Without all of the many marketing tools Google offers? Without Google Maps?

A comparison of Google products to its competitors shows that Google “gets it”. Their products run better, have a better user interface, are more intuitive. But do they really “get it”? Maybe. Or maybe a big part of it is just the result of having loads and loads of analytics about what users are clicking on, looking at and searching.

For about 20 years, Google algorithms have been tracking how users respond and making conjectures about what they want. Every time they roll out a new product or service, they’re also creating a new way to gather data on what the public wants.

And in 2021, Google is one of the biggest companies in the world. Their products are nothing short of world class.

Data collection in your business

Your business doesn’t have to be as sophisticated as Google. You also don’t have to be as intrusive. Ethics should always be top priority. Transparency will communicate to your clientele that their privacy and their consent matter just as much as their feedback.

There are a few basic ways to capture data using just your website and your sales team. We’ve covered those in another post, which you can read here.

As technology and business advance into the next phase, which technophiles are labeling “Web 3.0”,the infrastructure of connected computing is evolving to enable more and more data capture. 5G, edge computing and Internet of Things – they’re all about being able to capture, process and store more data in less time. You can read more about that here

Data helps you:

•Track customer satisfaction

•Gather controlled customer feedback

•Identity the most profitable demographics to target with select products/services

•Tailor your products to better serve your most valuable customers

•Have a dialogue with your customers

•Show investors, partners, and clients how your business works

•Determine which marketing strategies offer the highest ROI

For more on data capture, see these articles:

Key Performance Indicator

Measuring your most valuable sale

Addressing customer loyalty with the Ultimate Question

Cost-per-lead

Cost-per-sale

An easy way to quantify the effectiveness of your marketing

Free Vector Advisors is here to help you develop your exit strategy. We help businesses of all sizes in Palm Springs, Bozeman, Seattle, and Pittsburgh. Reach us via our contact form, which you’ll find here.

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