This Is the Importance of Data for Businesses
Business data usage continues to grow with the average user generating 1.7MB every second. Collecting data on customer behavior, marketing information, sales orders and more is now a priority. Yet 95% of businesses realize that managing unstructured data is a major concern.
If you ever wanted to know the importance of data for business then read on.
Discover the types of data collection and the benefits of data retention and analysis. And learn why a solid data governance strategy is essential in today’s marketplace.
What Is Business Data?
Business data is any type of information that relates to the management of a company.
That includes sales invoices to ledgers to marketing stats and staff security logins. Basically, any information that gets recorded for business use.
History of How to Collect Data
Traditional data collection methods have changed in a major way since the first records dating back to 18,000 BCE.
From tablet stones to papyrus scrolls to paper books, the method of storing business records keeps evolving. Yet, it wasn’t until the advent of the silicon chip and digital data storage that a major shift occurred.
Modern technology now allows any business to collect data from anywhere in the world at the speed of light.
Cloud datacentres and AI ‘business intelligence’ can gather and analyze terabytes of data daily. Sources range from social media to websites interaction to live streaming on phones and PCs.
Data Governance
It’s estimated that Internet users create over 1 million terabytes of data each day.
It’s easy to become swamped with such vast amounts of information. That’s why data governance plays an essential role.
Data governance is defined as the process of managing, securing, organizing, and presenting data. It ensures that companies abide by all applicable laws while keeping their information correct.
You can learn more about data governance on this website. But as a business owner or manager, why collect data in the first place?
Importance of Data Collection
Below are three ways that businesses use data collection to help make informed decisions and review past performance.
1. Data Analytics Strategies
At the heart of collecting data is the ability to analyze it.
Consider reviewing your past year’s email newsletter marketing campaigns. Statistics will highlight what mailshots worked and what didn’t. Also, the best times to send emails and optimal customer segmentation based on opens and click-throughs.
Data analytics gives you the ability to revisit the past to predict the future and plan accordingly.
2. Business Automation
Big Data is defined as large data volume sets that contain the x3 Vs:
- Volume – large amounts of data
- Velocity – fast inbound collection
- Variety – multiple data sources and types
Machine learning is now able to analyze this vast data pool and generate ways to improve business performance. AI can also predict future events and prepare for them.
3. Measuring Customer Experience
Companies of all sizes want to engage with their customers.
Collecting customer or user experience (UX) data helps identify any issues. That includes feedback and reviews to heatmaps for website interactions. Pages with no visits may need revising to improve their search engine rankings, for example.
More Benefits of Data for Business
The importance of data cannot be overstated.
Businesses of all sizes and types need reliable historical information to base future decisions upon. Managing that data from the outset remains an essential part of the process. Whatever data you collect make sure to keep it safe and legal.
Read more benefits of data for business use on our blog.
