Insights run businesses.
Note — This article is based on my perspective.
“Data is not just a collection of facts and figures, it’s the window to the world, revealing deeper truths and unlocking limitless possibilities.” — Rishi Shah
Before Starting this Article Let’s understand the difference between Data, Information & Insights
Data — Data is the raw numbers that we capture according to some standards. Data refers to raw and unprocessed information that is collected and stored. It can come in many forms, such as numbers, text, images, or audio. On the other hand, insights are derived from analyzing and interpreting data.
Information — Information is data that has been processed and organized in a way that makes it useful and meaningful.
Insights — Insight is gained by analyzing data to understand what is going on with a particular situation or phenomena.
Data tells us what is happening, but insights help us understand the reasons behind it.
As a former founder of a data and content company, we generate and collect users’ behavioral and interaction data and help other businesses and brands to improve customer retention through personalized Insights.
Remember, Data is the new oil.
There are many use cases of data & insights for business. such as
- Customer segmentation.
- Product Improvisation
- Research & Development
- Sales optimization.
- Marketing optimization.
- Improve recruitment / HR.
- Supply chain optimization.
- Market research
- Help to make better decisions and business strategies.
For a better understanding, I will give you a ground-level idea about how a small business individual works with insights and makes his business grow.
For this let’s take a Small Grocery Store owner as an example.
How can he make more sales of products in his store? where people are making less money.
For these, he needs Insights and strategies to grow sales such as:
- Affordability Analysis
- Competitor Analysis
- Price Optimization
- Promotions and Sales
- Inventory management
So, the point is by using insights it is easy for a grocery store owner to decide what will be the correct discount pricing of products or what type of products/stocks he has to store in his inventory for more sales, what is the exact product that customers are looking for and much more.
Every business is different and complicated, and nobody really understands it 100%, so insights help you to understand some information structures deeply.
As we see, Data makes the base of the pyramid next is Information, and Finally Insights.
Characteristics of Good Data Insights are actionable, meaningful, and relevant to the problem. Good data insights provide a clear understanding of the relationships and patterns within the data and provide actionable recommendations or predictions.
But how do Businesses collect data?
There are many methods to collect data and it can vary on the type of businesses
Some methods of collecting data are:
- Web analytics.
- Surveys.
- Log files.
- Social media.
- Transactional data.
- CRM Systems.
- Email marketing.
- Physical Tracking.
- Remote Monitoring
- Video & Audio data
The more accurate your insights are the more valuable it becomes for your business also help you to make more accurate decisions and gives you direction and flexibility to do something different.
Hope you all get my point about how “Insights run businesses.”
Thank you for Reading
If you have any questions, thoughts, or comments, please feel free to write below.
