The world is rapidly transitioning to becoming more and more data-centric. The same rule applies to modern companies today who are reliant on data to make all the critical decisions that could make or break their business.
While this is certainly a tantalizing aspect given the different avenues that have been exploited to collect data, most companies struggle to leverage such large datasets against insightful learnings regarding customer behavior. This trend has been attributed to the intrinsic fallacies in the process of data aggregation and interpretation. So, what are some of the most important issues that growing businesses seem to be facing when it comes to managing their data?
1. Dealing with massive volumes of data
Businesses today are left to deal with colossal amounts of data which are only growing exponentially with time. They end up struggling with sifting through so much data and hence ensuring that all end users have access to the data they need at the time they want it to the most. There’s also the issue of handling older datasets and creating separate platforms for them in case they prove to be useful at a later time. All of this necessitates the integration of a robust data aggregation platform that can collect information from varied sources such as:
- Sales teams who’re involved with pushing company products to consumers
- Technical executives who’re constantly fine-tuning market strategies
- Customer support factions who get complaints from users registered and get customer satisfaction surveys filled
- Marketing personnel who keep a track of all those who attend an event or download content from the website
- Management folks who transform such data into valuable metrics for meaningful interpretation.
2. Sub-standard data quality
The abundance of data is a good thing, but it amounts to nothing if the data collected is missing crucial details or isn’t in line with the standards laid down by modern corporations. Sub-standard quality can be detrimental to a growing business, especially when all the important decisions are taken on the basis of aggregated data. Moreover, a company ends up incurring more marketing costs since all its advertising efforts fail to reach the intended audience.
One effective strategy to avoid such shortcomings is to ensure that the whole organization treats data as an asset and begins to realize its true potential. Running frequent quality checks that look scrutinize every data entry for inaccuracies may go a long way in improving the quality of the data collected. Online services can be made use of to accomplish this task.
Yet another foolproof method to ensure that the right decisions are being made is to invest in a comprehensive data product platform that makes use of an array of data tools. The great thing about such tools is that they’re compatible with multiple platforms, providing a company with the best chances of accelerating the growth of their businesses.
3. Safeguarding sensitive consumer data
Consumer data is one of the most valuable assets a company can own and like every other asset out there, it is also highly vulnerable to external dangers. A potential data breach can lead to a massive efflux of customer data and a major hit to the reputation of a firm in the public’s eyes. Customers are more likely to withhold information in such a circumstance, only adding up to the data acquisition costs of the company.
Companies today have now come to the cruel realization that the threat of a data breach can never be ruled out. But, the incidence of such happenings can be minimized by implementing the right safety measures. Consequently, data security is high up on growing businesses’ priorities. Large sums of money being spent on beefing up security in a bid to protect an invaluable resource like data are becoming the norm nowadays.
4. Examining personal biases
Irrespective of how complex the data processing tools are, it’s ultimately the business owner that’s responsible for taking that all-important decision. While these decisions are mostly based on data analyses, one cannot rule out the impact of personal biases in this process. Past experiences, opinions from friends and family, cultural taboos form some of the factors that shape up such personal biases. It’s human nature to side with data that go with his or her preconceived notions and reject those that go against them.
The first step to overcoming such biases is to recognize them and acknowledge their existence in the first place. Business owners should use data to widen their horizons and look at the bigger picture. If that doesn’t work, they can always hire external help who will make the crucial decision for them without getting influenced by such biases.
Business owners today in addition to running their businesses also end up serving as data scientists. They’re left to deal with the headache of storing, processing, and managing extremely large amounts of data. This could prove to be a particularly daunting task when an effective data management strategy isn’t in place.
So, it’s highly imperative that growing businesses look into data product tools to ease the burden on their shoulders and let them get back to their original roles of managing a business.