Say big data and you will likely be greeted by either groans or gasps. In this blog, we’re uncovering how small businesses can use big data for small business to their advantage.
It’s difficult to conceptualize a world where small business data analytics and big data coincide. But even though the global big data and analytics industry is worth over 274 billion dollars, and large tech giants, such as Oracle, IBM, and SAS own the lion’s market share, small businesses still greatly benefit from big data.
But how? Aside from the rapid and accurate forecasts, the analyses big data in business unlocks lead to long-term financial strategies that lead to a sustainable increase in your bottom line. Big data lets companies (both large and small) better prepare advertising and marketing campaigns, define their customer base, and plan product launches and inventory.
It provides benefits to companies as far-reaching as HR and R&D. There’s no reason to shy away from the term big data just because it sounds like something a large company would only have access to. Continue reading to learn more about how big data can help your small business.
At Fully Accountable, we’re committed to providing a first-rate financial service that streamlines your company’s finances in an ever-increasing business landscape. Our financial professionals are up-to-date on the latest technologies and use advanced data analytics consulting for small businesses financial business intelligence to determine the most effective financial strategies for your business. Contact us today to schedule a 30-minute strategy call.
Why Small Companies Can’t Ignore Big Data
A Window Into Your Customer’s Mind
Utilizing the correct small business analytics within an organization is monumental for the success of a business, no matter the size. You can’t measure your company’s performance if you fail to input the correct customer data. Data analytics reveals all to your company.
It provides your customers with the voice they didn’t know they had. It speaks what they won’t. Consider the possibilities of gathering customer behavior on your website, where they spend the most time and when they leave it. The possibilities of data are limitless.
You Don’t Want to Lose Your Customer-Base to Large Companies; They Use Big Data.
Your largest competitors already use big data, shouldn’t you? You might feel tentative about dipping your toes into the ocean of data, but one thing that can dissuade you is the knowledge that everyone else is swimming and loving the water.
Big data can help in a multitude of ways. You might need to migrate all your financial customer data to the cloud. You can use business analytics for small companies and benchmarking to develop financial strategies. You might even want to hire a fractional CFO who understands how to integrate and interpret the small business data analytics that fits your company’s needs best. Big data is the answer to all these problems.
Most small companies have been compiling data in some form or another for years. The problem is that they haven’t aggregated that customer data, and without aggregation, analysis can’t take place.
Big Data Doesn’t Replace In-House Employees and Decision-Makers. It Enhances Them.
Big data is not a substitute for human acumen and ingenuity. It’s simply a tool, and a very powerful one at that. It guides decision-makers with numerous case studies and shows how big companies use statistics to solve problems. It provides answers to questions that were previously impossible to ask.
Part of the fear surrounding big data comes from the same place as the fear of AI. Elon Musk aside, big data doesn’t eliminate the human touch and creativity. It guides your creativity. It’s not simply about reducing the time it takes to go to market. It’s about giving you insight into taking products to market the right way. Big data gives you access to numerous answers, but it’s still your job to ask the right questions.
How Can Big Data Improve Accounting Procedures?
Robotic Process Automation (RPA)
The most common accounting use of big data is robotic process automation (RPA). RPA features advanced AI software that automates repetitive tasks, such as manual data entry. It can also automate auditing and other accounting tasks. This frees your in-house accountants to focus on larger financial objectives. With the ability to detect outliers in large databases, big data virtually eliminates the tediousness of the job.
Because of big data and RPA, you gain access to real-time, on-demand analytics. You have access to information when you want it and your team members have the ability to focus on strategic initiatives. You can outsource your accounting department or implement a strategic CFO in your infrastructure.
Real-Time Results
AI-driven RPA enables near real-time, on-demand delivery and gives decision-makers with the resources they need. Accountants will be able to complete more impactful work as a strategic advisor rather than a numbers cruncher. RPA will help them translate big data into strategies as well as generate insight.
Risk Analysis
As much as 70% of accountants who implement big data into their decision-making said it improved their decision-making strategy and that deploying big data solutions helped capitalize on financial objectives. The analysis uncovered with big data doesn’t just help with strategy. It also helps analyze the risks of each prospective strategy. Having big data on your side can produce predictive analytics and your accountants will be able to utilize those insights.
Improved Client Experience
Again, when looking at AI, it’s easy to discount it as the next technological fad that solves some things but creates other problems. However, the most important thing to remember is that AI improves the customer’s experience with your brand. But it’s not as simple as AI implementing pages that automatically increase customer loyalty.
You have to learn how to implement these tools and optimize their performance. If anything, AI simplifies your job and helps you approach strategy with more creativity. Aggregated, industry-wide data analysis helps accountants better quantify and qualify their performance with certain customer demographics to pinpoint where the customer funnel can improve.
As with the other benefits of AI, accountants have the ability to spend more time advising clients directly. The added insight into these strategies mean accountants can focus on more high-level initiatives, such as providing cutting-edge, data-driven services.
Practical Steps for Implementing Big Data in Small Businesses
For small businesses, getting started with big data for small business may seem overwhelming, but with the right approach, it becomes manageable and highly beneficial. Here’s how you can begin harnessing the power of big data without breaking the bank:
- Identify Key Business Questions: Start by pinpointing the most pressing questions or challenges your business faces. Do you need to understand your customer behavior better? Are you trying to forecast market trends? Defining your goals will help you narrow down the type of data analytics tools and metrics you need.
- Choose the Right Tools: There are many affordable tools tailored to small businesses that can help track and analyze customer data. Solutions like Google Analytics, Tableau, and Microsoft Power BI allow small businesses to dive into small business data analytics without needing extensive technical expertise or a hefty budget.
- Collect and Aggregate Data: Start gathering customer data from various sources — your website, social media, and sales platforms. Make sure to aggregate this data so you can perform a more comprehensive analysis. Properly aggregated data analytics for small business gives you a clearer picture of your customers and business performance.
- Monitor and Analyze Your Data: Regularly analyzing small business analytics can help you stay ahead of market trends and refine your strategies over time. Look for patterns in customer behavior, track KPIs, and adjust your campaigns accordingly. Whether you’re refining marketing efforts or improving product offerings, using big data effectively is an ongoing process.
- Seek Professional Help If Needed: Hiring a data analytics consultant for small business can help streamline the process. If you’re unsure of how to handle all the data, or how to turn that data into actionable insights, a consultant can help you create tailored strategies and solutions.
Tools and Resources for Small Business Data Analytics
Small businesses often think that big data is only accessible to large corporations, but there are plenty of affordable and scalable tools that make data analytics accessible. Here are some options to help small businesses harness the power of big data:
- Google Analytics: Perfect for tracking website traffic, understanding customer behavior, and analyzing visitor demographics. This free tool allows you to monitor key metrics, such as how long visitors stay on your site, where they’re coming from, and what pages they’re visiting the most.
- Tableau: A robust data visualization platform that enables you to create clear and actionable reports. Tableau is great for businesses looking to identify patterns and trends in their customer data.
- Microsoft Power BI: This user-friendly platform helps you integrate data from different sources and analyze it with powerful visualization tools. It’s an affordable option for small businesses looking for a comprehensive data analytics tool.
- Zoho Analytics: An intuitive tool for business analytics that allows small companies to create custom reports and track customer behavior across different touchpoints. It’s a perfect fit for smaller teams looking to analyze small business data analytics without a steep learning curve.
- Klipfolio: A cloud-based dashboard tool that enables you to combine data from multiple sources (Google Analytics, social media platforms, etc.) and track your KPIs in real-time. Klipfolio helps small businesses monitor market trends and customer metrics in one place, making it easier to adjust strategies.
Big Data Analytics for Small Businesses
The AI trend is everywhere and like all trends, some of its steam will bloff off while others that have real impacts on your business will stick. It doesn’t matter whether you’re a small or large business, you can use AI to your advantage. One of the areas of business where you can utilize big data is in your accounting department.
At Fully Accountable, we use state-of-the-art technologies and a holistic approach to your finance department. For us, it’s not just about compiling loads of customer data. We care about the quality of data we accumulate and the caliber of financial professionals who analyze that customer data. If you’re interested in how big data can affect your bottom line and long-term financial strategies, contact us today.
