From times when data was considered a privilege, nowadays a business can’t reach new goals and expand without data. Let’s explore key data-driven businesses, what datasets they use, and the big benefits of data.
What is a data-driven business?
When companies purchase data for business and engage with a data-driven approach that means that they will be making decisions and applying new strategies based on data insights, analysis, and statistics.
Data is constantly growing, from about 44 zettabytes of data today, by 2025 it is projected to reach 175 zettabytes. Businesses that used to make important decisions solely based on intuition and gut feelings, now have empirical evidence that will more credibly result in positive outcomes.
The best types of datasets that businesses can use
Datasets are grouped collections of data that share a common attribute. With over 44 zettabytes of data in the entire digital universe, each business withholds its collection of datasets. But even with just large numbers of data, there are some key datasets that almost all businesses utilize. Let’s take a look at those.
Firmographic datasets
Firmographic data combines all data about organizations, including names, locations, industry types, target markets, and organizational structure. This data is used in two main ways, the first one being to track competitors and seize player advantage. Other companies use firmographics for B2B insights.
Employee datasets
Employee data encompasses both basic employee details and specific facts about performance, special skills, and attitudes. Industries incorporate employee data to analyze how they will react to new policies, how they will manage new tasks, and what can motivate them.
Startup datasets
Startup data withholds all details about early-stage companies, information that can be useful for founders. The data provides guarantee leverage for big founders, these founders analyze which startups are reliable and profitable.
Technographic datasets
Technographics includes the other side of data about organizations – the technological stack, including tools, adoption rates, software, and hardware. The data is used to improve and override technologies and seek new solutions to challenges.
The main benefits of rich datasets for businesses
From improving decision-making to guiding new strategy production, datasets can get incorporated into almost any business branch and operation. In fact, 92 percent of companies express that they noticed measurable business value from data and analytics investments. Here are some of the main benefits a newly data-oriented company will notice.
Learn customer preferences and current needs
Every business works to satisfy its customer, whether that’s with the product, the marketing, or communication. While some companies choose to approach customers with hit-and-miss strategies, others choose data to help. Data analysis will provide an understanding of how customers will react to a new product, what they dislike in marketing campaigns, and if communication reaches their standards.
Identify gray areas in the industry
Many businesses reach a point where they stop growing, the business stays on a steady road with no special changes. A steady business is good, but what’s better is a growing one, and that’s where data can help. By looking into data a company can detect a crack in the industry, an unfulfilled customer want, and be the first to take over and provide a solution.
React to potential issues in advance
A pandemic-produced shortage of masks and gloves or a weather-produced shortage of raincoats and umbrellas can be predicted early with data. This is possible since data integrates supplier data, prices, weather updates, and trends, which provide levels of information that are enough to prevent a shortage.
Find and attract top talent to your company
Employees power businesses, their knowledge, and motivation will affect how a business functions. Employee data can help team leaders find approaches for each employee, what type of motivation they need, when are they most active, how many days off they need, and other aspects.
Wrapping up
When faced with the opportunity to become a data-driven organization, there shouldn’t be any doubt left in such companies. While the journey may start rough, the neverending business benefits are worth all the effort.
Data-driven companies have been reaching new levels of success, find out the big benefits of purchasing data for business.
