Why Every Business Needs a Data Strategy in 2021
In 2020, industries generated 2,500,000,000,000,000,000 data bytes each day. By 2025, it’s estimated to reach 175 zettabytes, according to Seagate. This exorbitant pool of data relates to all things online — including buyer behavior, intent, and interactions.
Data is clearly a critical business asset. Every business, regardless of size or type, now needs to be data-centric.
The Power of Data is Immense
- In 2022, the big data and business analytics market will reach annual revenue of $274.3 billion.
Several factors contribute to this increased revenue, such as mobile traffic, cloud computing, and technological advancements like the Internet of Things, blockchain and artificial intelligence.
- McKinsey Global Institute finds that data-driven organizations are 23 times more likely to acquire buyers, six times more likely to make them loyal, and 19 times more profitable than traditional ones.
Businesses rarely translate these powers into action. Only 28.3 percent of companies have achieved a data-driven culture, leaving 71.7 percent behind.
What Can You Do as a B2B Leader?
Having a clear strategy is vital, given the sheer volume of data available these days. However, most business leaders get so caught up in and collect as much data as possible for no apparent reason. Some feel overwhelmed by options and bury their heads in the sand. Both are unwise business practices.
Importance of Good Data Strategy
An effective data strategy ensures data is well-managed, utilized and valued. It provides a common set of objectives and management practices to repeatedly process and share data across enterprises.
Three Benefits of a Good Data Strategy:
- Build data-driven products and learn competitors’ strategies.
- Achieve data-ready acquisition, pipeline, storage and analytics systems.
- Define the data you’ll need in advance for sales analysis.
Remember, a good data strategy isn’t about what data you possess or readily available – it’s about what business wants to accomplish with it.
What Makes a Strong Data Strategy?
Business leaders must consider the following elements when creating a data strategy:
- Data Definition: To determine the best-suited data for your business, first define how you want to use it. Data types differ depending on your goals.
- Data Sources: With your goals identified, think about how you’ll source the data. For example, accessing or purchasing external data, running internal queries and reviews, or studying domain reports.
- Data Analysis: Apply analytics to turn your data into business-critical insights. The extracted actionable insights should improve customer service, predict buyers’ behavior and facilitate decision-making.
- Data Tools: Identify the technology infrastructure requirements (software or hardware) to analyze the data and derive insights. Train in-house team (or outsource) to develop data-related competencies following the tools selection.
- Data Governance: Data collection and storage are subject to legal and regulatory obligations. It’s vital to factor data ownership, privacy and security issues into data strategy. Failure to address them could result in a huge liability.
- Data Transparency: Be explicit about the data usage with leads. Offer buyers the flexibility to choose what they sign up for, thus complying with data protection laws, such as GDPR and CCPA. Truth-based marketing improves credibility.
Stay On Top of the Data Business
The power of data seems to only grow over time. Companies with strong strategies to manage this asset are today’s success stories. Be one among them by staying up-to-date with our data solution blogs.
Also, register for the True Influence Summit to learn more about data-driven revenue.