Turning Data into Dollars (and no, I don’t mean by selling or exchanging it!)
A basic overview of how you can leverage your data to improve your bottom line.
Don’t worry, leveraging your data is easier than you might think 😊
Put Your Data to Work!
Ultimately, you can make your data work for you through accurate and appropriate analyses. But what exactly does that entail? To get a complete picture of an organization’s performance, you need as much data, from as many different sources as possible. You also need to be sure you know what you’re looking for. Of course, this is all dependent on what you’re hoping to achieve. Don’t worry, there will most definitely be a blog post that will dive into all of that in the near future!
Loads of Data
Now, think about just how much data your organization is collecting. Not just externally, but internally as well. Most likely, there’s a massive amount of information you could be utilizing to make better business decisions. It’s also pretty likely that that data is siloed away to where it’s nearly impossible to get a comprehensive view of things. And on top of that, it may not even be accessible to everyone who needs it.
A Solution
This barrier can be alleviated by creating a single source of truth, which can be done by using a platform like Snowflake (there are others, but Snowflake is the best by far). Snowflake not only allows you to securely access all organizational data from one location, regardless of the sources, but within the Data Marketplace, you call pull in third-party data that enables even deeper insights. Plus, the platform allows data to be accessed by any department (of course, permissions can be fully customized) that needs to access it, simultaneously.
Ok, So Now What?
With access to all of the information you need, you can analyze to determine what happened, why it happened, what’s likely to happen next, and what can be done to influence future outcomes. This is where an end-to-end business analytics platform like DataLakeHouse comes in handy (although I might be biased here, as I am with Snowflake, but I personally think the competitors really aren’t worth mentioning!). Once analyses have taken place, well informed business decisions can be made to improve operational efficiency, consumer satisfaction and retention, etc.
Examples of Data-Guided Business Decisions
For example, data may indicate that consumers are spending more on certain products during particular time periods, like how bottled water sales typically increase just before inclimate weather. This information suggests that you may want to increase production right before hurricane season in specific areas. This is also known as “actionable intelligence.” Data can also signify shifts in consumers’ spending habits due to a variety of factors. Changes to the cultural climate, like increasing numbers of stay-at-home dads and working mothers, for instance, may lead to more men starting to do most of the household shopping than women and thus assuming the role of primary purchase decision maker. This information can be used to appropriately inform marketing decisions and achieve the desired outcomes.
A recent example we can all relate to is the great TP shortage of 2020 that we experienced as a result of the global COVID-19 pandemic. I’m sure the major fluctuations in that data (an 845% spike in demand to be precise!) greatly aided the toilet paper industry in their manufacturing and production decisions. Data also allows us to make personalized recommendations for consumers, which in turn, increases their satisfaction and helps turn them into brand advocates who end up organically extending marketing efforts. Additionally, we can target customers more accurately by observing data on them as well, which improves customer retention in the long run.
This is Where the Magic Happens & Data Turns into Dollars!
I think you probably get the picture here. Increased efficiency ultimately equals less spending (or more spending on items and efforts that bring more value) and more revenue. Specifically in marketing, when you know who your target customers are, you can reach them much more effectively, therefore you waste less marketing spend and improve your return on ad spend (ROAS). And not to be too obvious here, but for most companies, happy customers tend to stick around longer and spend more money.
If you’re interested in finding out more about Snowflake you can join our Carolinas Snowflake Meetup Group (not just for Carolinians) by clicking here 👉 https://www.meetup.com/carolinas-snowflake-meetup-group/
