What Kind of Data Should You Focus on as a Business Owner?

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As a business owner, you know that it’s important to give your consumers what they want if you hope to grow your business. Unfortunately, analyzing data to do this can seem like a complicated and difficult task if you’re someone who has never done it before.

Thankfully, you don’t have to be a data analyst to take advantage of all of the wonderful information that data has to offer. By having some guidance around which types of data you should be paying attention to as a business owner, you have the opportunity understand your business in a deeper way and have an easier time of taking it to the next level.

Here are the kinds of data you should focus on as a business owner.

Consumer Data

For business owners — especially small business owners — understanding your consumers is vital to succeeding. A failure to truly understand who your consumers are, what they respond to, and what their needs are can have disastrous results for your business and entrepreneurial pursuits.

When it comes to understanding your consumer, there are a few different ways to go about getting data. If your business is relatively new and you don’t have enough consumer data of your own, it can be helpful to look to your competitors and other similar businesses.

For example, if you’re starting a sandal company, analyzing the ads, campaigns, and products of other successful sandal brands can help you gain a deeper understanding of what your target consumers want and respond to.

If you’ve been in business for a little while, then it’s time to look at your own data. There are different data sets from your personal enterprise that you can look to in order to cultivate a deeper grasp of your consumer.

To start, you can simply look at which products or services are selling the best and which are selling the worst. From this simple observation, you can start to deduce what products or services your consumers truly want and focus your energy on giving them more of that.

Apart from sales data, looking at marketing data can also help you understand your consumers more deeply. However you’re currently marketing your business, look at the data to see what consumers are responding to.

For example, you may find that email reminders for customers who leave items in their online carts work surprisingly well. As such, you can use this analysis of the data to start crafting even more effective and potent messages to send to customers.

By looking at data that shows you how your consumer behaves, you have the chance to consistently tweak your business in ways that help it grow.

How Consumers Are Finding Your Business

As most business owners are aware, converting new customers can be difficult and expensive. Thankfully, the process can become both easier and more cost-effective when you’re taking advantage of the right types of data.

One question you should be asking your consumers is how they found your business. Whether it’s Meta Ads, Instagram posts, or print campaigns, finding data on this subject can help you gain a better understanding of how your business is actually reaching people.

The more data you have on this topic, the more resources you’ll be able to pour into the right marketing channels. As such, understanding how your business is being found allows you to the opportunity to grow your business in even more impactful ways.

Purchase Data

Data about how your consumers make purchases is one of the most valuable types of data you can have as a business owner. Seeing what products people leave in carts, what products people buy frequently, and other purchasing habits can help you alter your business in ways that make it more successful.

Today, collecting this type of data has become easier than ever. Depending on the online shop you use, you probably have access to data about how people are using your online store. If not, you can take advantage of the many coding resources out there to automate the collection of purchase-related data on your website.

By paying close attention to the ways that people are purchasing your products, you can alter your funnels to make your online store more effective and increase the amount of products or services that you’re selling.

Ways to Collect Data

When it comes to collecting data about your business, there are many ways you can go about doing it. Understanding your options can make it easier to take the leap and start focusing on your business-related data.

Surveys

Surveys are a great way to collect specific data about topics you’re curious about. One effective way to incentivize your consumers to take your surveys is by providing them with something in return. Discounts, free shipping, or other promotions are all great ways to get your consumers to answer your burning questions.

By crafting your own surveys, you’ll be able to create specified data sets that help you achieve your specific goals for your business.

When Someone Makes a Purchase

When consumers make a purchase from your store for the first time, you have the chance to collect important data about them. This includes things such as their contact information and the area where they’re located.

By automating processes on your website, you can constantly be collecting data about your customers without any effort on your part. As such, you should be sure to tweak your website so that it automatically saves customer information when they make their first purchase.

Data Can Help Business Owners Thrive

While some business owners may believe that data analysis is an overly complicated field that isn’t for them, the truth is that data can help anyone thrive. From understanding which marketing tactics work best to the types of products consumers are willing to spend money on, data can help you peel back the curtain and better understand how your business functions.

So instead of feeling intimidated and ignoring the data, do some analysis of your own and watch as succeeding as a business owner becomes far easier and more accessible.

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