Small & medium businesses (SMEs) are considered the backbones of the economy worldwide, creating approximately 70% of jobs & GDP globally.  And 33.2 million small businesses in America account for 99.9% of all US businesses.  Even though they play a critical role in the economy, SMEs cannot grow quickly due to a lack of strategic planning. With affordable software and cloud-based solutions, small businesses can now easily collect, analyze, and visualize data to gain valuable insights into their operations and make data-driven decisions. While many large corporations have invested heavily in data analytics, small businesses can also benefit from leveraging data to improve processes, identify opportunities, and optimize resources. It enables making informed decisions & gain a competitive advantage.
Through this blog, we will explore the benefits of data analytics for small businesses and provide some tips on how to get started. So, whether you’re a business owner or a decision-maker with an SMB, this blog will provide valuable insights into the power of data analytics and its potential to transform your business.
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Small business data analytics refers to analyzing and interpreting data generated by small businesses to identify patterns, trends, and insights. It uses specialized software and tools to extract valuable information from large data sets, including customer behavior data, market trends, and internal business operations. By leveraging data analytics, small businesses can identify patterns and trends that might otherwise go unnoticed, allowing them to make data-driven decisions that can help them stay competitive and grow. Analytics for small and medium businesses help extract valuable insights into many aspects of a company, including sales performance, customer behavior, marketing effectiveness, and operational efficiency.
Examples of data analytics applications for SMEs include analyzing customer data to identify buying patterns and preferences, optimizing marketing campaigns to reach target audiences more effectively, forecasting sales and revenue, and identifying cost-saving opportunities.
Current State of Small Business Analytics:
A joint research study  conducted by Strategic Finance Magazine & IMA® (Institute of Management Accountants) Research analyzed which data analysis tasks are being performed, the approaches for developing data analysis expertise & the skills sought and more. Here are the key findings;
Data Analytics combines big data technologies and advanced statistics, algorithms, and business intelligence tools to extract insights from vast amounts of data and provide objective analysis to inform critical business decisions. Furthermore, automated business solutions can replace numerous manual data analysis procedures. Here are a few ways in which SMBs can utilize data analytics to streamline business performance;
Collect Data> Clean Data> Identify Patterns> Make Predictions
By leveraging this information, small businesses can transform how they interact with potential customers, focus on preferred communication channels, and resolve issues expeditiously. Data analytics furnishes insights that present a comprehensive business overview, rendering the need to make decisions solely based on conjecture or emulation of others obsolete. This approach permits companies to operate in a data-driven manner, catering to their business and customer requirements. The crucial point to note is that such a data-centric approach pertains not only to customers but also to a business’s overall performance. Data accumulation and analysis is the key to operating in a data-driven way, streamlining operations, improving HR activities, and more.
Data analytics can enable SMBs in numerous ways by curtailing operational costs, enhancing their business model, boosting revenue, and outshining the competition. Here are some of the many benefits that Analytics can bring to an SME.
Here are some of the benefits of data analytics for SMEs:
There are many types of big data analytics for small businesses, and you can utilize these techniques depending on your specific business model. They include:
Small and medium businesses are increasingly adopting data analytics across various functions and industries to derive valuable insights, optimize processes, and drive growth. Here are some of the top data analytics use cases across different business functions:
Several data analytics tools are well-suited for small businesses. And through this section, let’s try to explore how could data analytics tools help small businesses:
In our experience, both Power BI and Tableau are well suited to enable SMBs to meet their specific needs and budget best. Read this blog on Power BI vs. Tableau Comparison to better understand the right data analytics tool for your business.
Data analytics can provide SMBs with valuable insights into their operations and customer behavior, but they often lack the resources and expertise to leverage this power of data fully. Let’s explore some of the data analytics challenges faced by SMBs and a few suggestions on how they can overcome them.
We will help you improve ROI and enhance data analytics and visualization with best-in-class software development and services.
For small & medium businesses, getting started with data analytics first might seem daunting, but it’s an essential step toward improving decision-making and overall business performance. Here are a few steps you need to consider:
Therefore, a combination of planning, data collection, analysis, and action can help your SMBs get started with data analytics.
Explore the best practices in data analytics for small and medium businesses to get actionable business insights. They include:
As a data analytics services company, we offer various services to medium-sized businesses (SMBs), including Business Intelligence & Data Visualization, Data Engineering & more. Here are some ways how we help SMBs:
An outdoor advertising company managing digital advertising panels wanted to reach a broader range of consumers, maximize inventory allocation and boost sales. We developed an online advertising booking system by leveraging our data analytics capabilities to help them respond to booking requests immediately, leverage sales opportunities, and maximize revenue.
Read more about how our Ad order management system with BI and Data Analytics helped the client.
A UK-based mid-sized medical service provider was in pursuit of creating a standalone system that offers real-time human activity recognition within the clinical systems to provide better diagnosis & treatment for critical care patients. Our team developed an ML-based healthcare monitoring system. It offers actionable insights to help collate the recorded data, including historical & current health data sets, from various connected devices and the patient’s vitals.
Read more about how our ML-based Healthcare Monitoring System helped the client.
Data analytics is no longer just for big corporations with big budgets. Small and medium companies can also benefit significantly from leveraging the power of data to make informed decisions, boost ROI, and respond to market changes quickly. Analytics for small and medium businesses can help identify and focus on their best customer segments, increase customer satisfaction and loyalty, predict and prevent churn, identify new business opportunities, and more. The key is to start small, identify specific goals, and build the necessary infrastructure to collect and analyze data. With the right tools and approach, small and medium businesses can gain a competitive advantage and drive long-term success.
Our team has experience working with varied SMBs to create custom data analytics solutions that meet their business needs.