6 PROVEN WAYS TO RUN A DATA-DRIVEN BUSINESS IN NIGERIA
As a business owner in Nigeria or outside the country, making decisions based on data is crucial if you want to be ahead of your competitors. If your decision making is not based on data, that means it’s based on assumptions and flowing with the tide – which is dangerous for the growth of your business. The word “data” can be intimidating if you’re not a number person or if you’re just a startup working on getting hold of what business is all about.
Data is mostly composed of numbers, and these numbers friend is the key to making informed decisions that’ll see your business thrive.
Serious-minded business owners run data-driven brands, while regular business owners run their business based on assumptions.
Which type of business owner do you want to be?
According to statistics, a significant number of businesses are not data literate – which means they run their business one day at a time.
If you’re reading this, that means you’re one decision away from being among the serious-minded business owners who make decisions based on data and information.
If you’re convinced that you want to be, here are six proven ways to get you started with owning and running a data-driven business in Nigeria.
Don’t Just Collect Data, Take Inventories of the Type of Data you Collect.
Data is presented to us every day in every activity and interaction we have with our customers. Knowing the data that’s available and what you have to collect is the first step to using data to make informed decisions.
While some data sources are distinct, others are not. Let’s say you operate a business where customers get to write down their names, address, time of purchase, and goods purchased, you’re getting these data directly to your database. On the other hand, when you run Facebook Ads or sit down to evaluate your typical customers, there are less obvious data sources you might not notice. These non-obvious data sources include who’s buying from you or clicking your Ads, where they are coming from, and what’s their gender, social class, etc.
You can make it a conscious duty to collect a particular type of data and make decisions based on these data. When you’re collecting data intentionally, you have the insight needed to beat your competitors in the game.
Make Time to Convert Data to Information
Without data conversion, data is nothing but meaningless sets of numbers. Make out time to review and analyze the data you collect into a story, pattern, a discovery that’ll give you an insight.
Check out for patterns, changes, and things that’ll give you pointers. Data analysis tools will come in handy while doing this.
Always have the ‘Big Picture’ in Mind
Why are you collecting data in the first place?
For the BIG PICTURE – To improve your business on all angles!
Analyzing your data can be done on different levels and will give you several insights, but always have the big picture in mind – that one goal.
Let’s say you want to find out the information on which customers are most profitable.
The answer to this question is complex because it goes beyond analyzing the data on which customers pay you the most money. You have to consider other metrics, including how much it costs you to serve customers, customers’ average lifetime value, the time it takes to attend to these customers.
With the big picture in mind, you’ll analyze these metrics simultaneously in a multivariate analysis and come up with an answer.
This can be a tricky process if you’re not acquainted with data analysis processes and tools.
Stay Focused on Target Metrics
It’s easy for you to get distracted when you get too much data available. When you’re in this situation, always consider your business goals and the data metrics you set out to collect in the first place.
With this in mind, stay focused and avoid getting distracted because when you get distracted, you waste more time achieving less.
Involve your Team
When it comes to data collection and analysis for a business, we recommend you involve your team members and every other person that the data affects. Surely, you can’t make every decision for your business, so there is no reason to keep the data from your team.
Train your staff on how to access your database and how to collect, analyze, interpret, and regenerate reports out of data collected. Also, enlighten your team on the importance of data management and how it will benefit your business. You can go further to encourage collaboration because people that wish to go far are advised to work together.
Encourage Data-Driven Decisions
Encourage everyone involved in decision making for your business to adopt data-driven decision making based on the data available. This way, they’ll be encouraged to keep the data up to date at all times.
Develop a data management plan that includes the collection, analysis, and, most of all, the quantity and quality of data to be collected.
Conclusively, we understand that becoming a data-driven company in Nigeria might be challenging. However, if you wish to grow your business beyond limits in Nigeria, then it’s a price you must pay.
We wish you the best as you stay safe!