Top-quality data currently represents one of the most important resources for any company. This is especially true for young businesses that don’t have much experience in their market and that still don’t know enough about their customers. Startups that lack familiarity with important tendencies and trends in their industry need to have this crucial data at their disposal from day one.
Making data-driven decisions and creating data-driven strategies has already become a standard in most organizations. This means that those who don’t adapt to this practice are almost certainly destined to fall behind. Here are some of the reasons why data science is so important for entrepreneurs around the globe.
Obviously, in order to make your startup a success, you need to know who you’re selling to and who you’re addressing. data science helps you find out what users who belong to your target market search for, what their interests are, or how they spend their time online. You can also identify your customers’ fears, pain points, and issues that your product can potentially resolve.
This can be beneficial in multiple ways. When it comes to product development, you’ll be aware of the vital aspects of the product you need to improve or focus on. On the other hand, your sales and marketing teams will know what they should insist on when trying to sell it, how exactly they should address the prospects, and which channels they ought to use to reach them.
Keep in mind that this is not a one-time thing, but rather a continuous process. Your market and the buying habits of consumers can change as a result of different external factors. For instance, the global pandemic has influenced average household spending, price sensitivity, and overall shopping behavior. These are all vital info that you need to take into account when devising a broader business strategy.
Now, in order to truly know your market, it’s not enough to analyze your audience. You also need to have accurate and timely info about your competition, and data science can be of huge help with this.
Your competition consists of companies that develop similar products or whose target audience overlaps with your own. Thorough data analysis will help you identify which businesses are your competition in the first place. You’ll discover the industry leaders and you’ll have a chance to study their online presence in detail.
Having the right info about your competitors’ websites’ performance or their social media presence can tell you a lot about overall market potential. Most importantly, you can find the most common search queries related to them and get a glimpse of the feedback they get from their customers.
This will be very valuable when you get to defining your unique selling proposition (USP). You’ll discover the biggest downsides of their products and you’ll have a chance to figure out why your own product is better or unique. Once you have all this info, you need to focus your marketing and sales efforts on these unique features of your product. This is a great way to show why you’re better than your rivals and gain some crucial competitive advantage.
Consumers’ expectations of brands are now higher than ever. They expect you not just to speak their language and understand their needs but also to ensure they have a highly-personalized experience throughout their buyer’s journey.
Namely, 80% of consumers are more likely to do business with a company that offers personalized experiences.
