When I consult with small business owners, there are 3 areas where my guidance generally has the most impact. I call these areas the 3 Pillars of Small Business Analytics.
The first pillar is a Competitive Landscape. I have found that very few small business owners really have a handle on the competition.
A competitive landscape analysis will reveal threats and opportunities that generally are not obvious to a business owner who focuses most of his/her energy on running the business itself.
Some of the data points you can capture and analyze include pricing, location, business size, quality, scope of business, diversity of product offering and of course revenue. You would be surprised to find how easy it is to gather all this info.
Knowing where your products and services stack up against your competition is a key to prosperity. To achieve this understanding you need to use analytics.
The second pillar is a Demographic Profile. I have also found that very few small business owners really understand the demographics around their business.
A demographic profile analysis will illustrate how closely your customer base mirrors the actual population around your business. In many cases small businesses are not positioning their services correctly based on the opportunity in their market.
Data to include would be traditional demographic markers like age, race, sex, family status, financial status, economic state, etc. There is a ridiculous amount of data on the internet that can be mined free and easy.
Making sure your business is properly positioned to take advantage of your arket will ensure more long term success. The data is out there; you just need to know how to bring it into your analytics process.
The third pillar is Customer Insights. With the boom in social media, most small businesses have not figured out how to capture and analyze all the information being published and shared about their business.
Customer Insight analysis allows a business owner to stay on top of problems and identify how customers feel about their business quickly.
We all know how quickly things can go viral and having a good tool to capture customer sentiment in social media is generally the most overlooked aspect of running a small business.
Positive and negative reviews, trending items, number of likes, follows and shares, are all items that can be rolled into customer insights. You can combine this with surveys, focus groups and loyalty programs among other things to get a full picture of your business.
If you are a small business owner, decision-maker or analyst then focusing on these analytics pillars will make all the difference in the world.
And the best part, is they are all free and easy to bring into your business.
Small Business Analytics — The field of small business analytics is just starting to blossom as companies are looking for more data-driven decision-making to prosper in the age of Big Data. Sonic Analytics is at the fore front of providing analytics training, consulting and outsourcing options to small businesses. Contact us now at email@example.com or connect with me directly to set up a free consultation on how to get more analytics in your small business.
Dan Meyer heads Sonic Analytics, an analytics advocacy with offices in Manila, the San Francisco Bay Area and as of February 2019, Ocala, FL. With over 20 years in Big Data, Dan is one of the most sought-after public speakers in Asia and has recently begun offering public training seminars in the United States.
Sonic Analytics(www.sonicanalytics.com) brings big data analytics solutions like business intelligence, business dashboards and data storytelling to small and medium sized organizations looking to enhance their data-driven decision-making capabilities. We also advocate the use of analytics for civic responsibility through training, consulting and education.
As citizens of this great democracy, we need to look at the data (analytics), plan a course of action (strategy) and share our data-driven viewpoints (presentation). This approach to a data savvy work force starts in school. So, we started an internship program to empower our youth to use Analytics, plan Strategy and Present their insights… ASP!
When not training current and future analysts, you can find Dan championing the use of analytics to empower data-driven citizenship by volunteering his expertise with schools and non-profits dedicated to evidence-based social progress like Saint Leo University’s Women in Data + Science Program and the Data + Women of Tampa Meet Up Group.