Data? How valuable is data for a successful entrepreneur?
Data is something that helps every entrepreneur to make crucial decisions for the company and change the strategies according to the data or dashboard responses. We may have always listened to “Data is valuable!” “Capture the data!” “Monetize the data!” “Don’t share the data!” chants by entrepreneurs but do we understand what exactly is data? And how is it a very valuable asset for the company? In this era of technology and information, data has an important role. There is a lot of data generated through the internet daily and this is the information that helps in strategies and decision making for the company.
Not every business owner is a data scientist, so there are few things that must be known to every successful entrepreneur.
Data analytics is very important
Seeing all those big numbers feels overwhelming, but maintaining and checking the records of those numbers is highly essential and this is what every successful entrepreneur should know about. For data analytics, there are many tools available but selecting the right tool is what makes it worthy.
Before choosing a platform to track your data, make sure it has good compatibility with other tools. Other tools include your eCommerce store, your POS, social media, website analytics, etc. Checking the ease of use, insights, and action of the software or the tracking tool will help us understand the data in a better way.
Past customers are the key to your profits
Past customers’ data is the best to track down your growth, best selling, etc. It is always important to focus more on your past customers rather than rushing out and finding new customers. Focus and spend your energies on past customers and in understanding their experience with you, which will make a huge impact on the company. In the language of data, it is known as a repeat customer rate. It is basically the percentage of your customers who have purchased previously. It is said that having repeated customers is five times less expensive than acquiring a new customer. It is a win-win situation for sure. Not only the past customer has a good impression on you but also you would know their buying preferences and information.
Understanding the customer lifetime value
Not every customer behaves the same way. Some look for only profitable deals while others have the perfect sense of shopping. And so, understanding the customer lifetime value is very important. What is customer lifetime value? The total profits made by a business in the lifetime of a customer is CLTV. It is important to calculate CLTV but what is more important is selecting the right software and tools to track it by every inch. A good analytics tool will help understand the different patterns. Tracking down all this data is very essential for a startup or a well-established business.
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Search for stories in your data
One of the simplest ways to understand and learn the insights of data tracking is to search for stories and make stories with your insights. Turn each story into an alarm for your future needs, for instance, if your repeated customer rate is very high, make sure you attract new customers from various ideologies. Increase your influence with a good market, but if your customer rate is too low, then stop spending too much amount on new customers and rather think of ways to retain your past customers as they are an important asset for your company.
These were some of the things which must be focused on and understood to acquire the right data.