See our latest news articles
Becoming data focussed is getting more and more important in the digital age because it allows you vastly to improve your marketing efforts, fine tune and improve your users’ experience and ultimately, grow more quickly as a business. It’s something the titans of the internet have been doing for many years, and there are lessons you can take from them to make your business more data oriented.
In January 2018, the sum of Google’s tangible assets was $61.3 million. Samsung’s tangible assets were more than double that figure at $158.5 million, yet Google’s market capitalisation (price per share x number of shares) was more than double Samsung’s at $729.2 million compared to $309.8 million. How are Google able to hold such value compared to a company like Samsung when they have such relatively low-valued assets? The answer lies in data.
Collecting data on their customers is one key method that the big companies such as Google, Facebook and Amazon have been able exploit to stay ahead of the game. However simply collecting data doesn’t hold any value – it’s how they utilise their data to create intelligent platforms which improve customer experience that creates the magic.
For example, both Google and Facebook have been able to create incredibly effective ad networks by improving the precision of their consumer targeting by using their collected data. This benefits all parties involved: the advertisers using the networks make more cost-effective sales; the consumers are shown relevant ads; and the increased consumption by both consumers and advertisers means Facebook and Google make more money, collect more data and further improve their operations.
It may be easy for the titans of the business world to collect and utilise data, but how can small- and medium-sized businesses do anything meaningful with the information they gather?
Data is important because it can help refine your marketing strategies and business operations. The ultimate purpose is to give you empirical evidence to back-up your decisions so that you know they will benefit your business, rather than simply going with your gut feelings.
Here are some actions your business can use with the data you collect:
Collecting personal data on your customers and prospects can be a great way to progress your business but misusing it could have business-ruining consequences. Legislation is now very strict under the General Data Protection Regulation (GDPR), which came into force in May last year, and you could incur a hefty fine if you’re caught breaching the terms.
As you collect data, make sure you also collect and document consents from your customers to ensure that you don’t come under fire from the Information Commissioner’s Office (ICO). It’s also important that you protect your data with secure IT solutions so that hackers can’t get hold of the information.
Using data to fine tune your marketing efforts is essential in the digital age if you want to grow your business. But make sure that the data you collect is used correctly to avoid coming under fire from the GDPR.