Among the 33 million small businesses spanning the US, only about 63% invest in SEO plugins and other data analytics, while the remainder rely on decisions based on gut feelings. The latter is a leading reason 595,000 small businesses shut down annually, while the former have a better chance of an 8% revenue increase. Data analytics and small business decision-making go hand in hand.
Below, we’ll delve more into data analytics and why your small business depends on them to stay afloat and thrive in a competitive atmosphere.
What Is the Importance of Data Analytics?
Data analytics are SEO (search engine optimization) components that comb through data in your related field to let you know what your target audience is searching for, the best keywords to increase organic traffic to your pages, and what makes your competitors successful. It also analyzes your website, uncovering ways to increase visibility on search engine results pages, improve click-through rates, and increase revenue.
Understand Customer Trends to Stay Ahead of the Competition
Suppose you have a website with several pages, including blog posts, service and product pages, and more. In that case, a data analysis explains which pages receive the most views. In other words, it deciphers which pages are more likely to get potential customers to take further action by clicking on the call to action and which are struggling. With this, you can format failing pages to mirror successful ones.
You can use purchasing and viewing history to determine what products are selling to reconstruct your inventory accordingly. These customer habits also pinpoint what items need more marketing efforts to interest individuals.
Make Future Predictions To Anticipate Risk and Plan for Scalable Growth
Every business decision can make or break your company, and the only way to tell whether a decision will be successful is to make future predictions. Many purchasing patterns change in tune with customers’ demands according to seasons and other factors. Data analytics looks at precedence and current market trends to foresee appropriate actions and plans to keep customers happy and engaged.
By sorting through a vast amount of data, data analytics also remedies poor business decisions like overstocking on a low-demand product by readjusting the price to reduce the inventory. These processes remedy setbacks rapidly and readjust operations to reduce risk and pave the way for scalable growth.
Data-Driven Decisions: Your Key to Success!
Data-driven decisions are key to better understanding your company, its present and future state, potential customers, and the competitive market you’re in. So, rather than make decisions on a whim, learn more about how data analytics and small business decision-making fit together.
