Professionals believe companies are only using data to 75% of their potential, new research finds / Digital Information World

As anyone with a basic understanding of business knows, data is an absolutely crucial component of efficiency, success, and productivity. Keeping abreast of industry trends and being informed when it comes to statistics is important to the day-to-day life of a business and ultimately to its bottom line. From driving results to understanding customers and the industry climate, data plays a major role in the success and operations of businesses of all types and sizes.

For those whose work revolves around analyzing KPIs and other data elements, it is imperative that companies use these numbers to their fullest potential in order to leverage them to their advantage. In a new, unsupervised study interrogates a group of employees who work with data daily to get a sense of how they think their company is using the information they collect and analyze.

The study showed eye-opening results and shed light on some of the ways companies fail to effectively leverage these metrics to make informed decisions both overall and on a day-to-day basis.

According to survey respondents, the type of data most frequently analyzed and tracked by their companies was sales volume (45%), followed by customer demographics (38%), average order volume (35% ) and production time (31%). ). Employee performance metrics and task completion time are both 30% related.

Early results also highlighted that small businesses with fewer than 50 employees were less likely to aggregate or analyze data. On average, respondents said their companies spend $1,973 per month on expenses related to data collection and analysis. Most companies (42%) kept their data tracking in-house, although 34% said they used external support and 24% opted for a hybrid of the two.

Sentiment regarding the use of data from the companies represented by survey respondents was overwhelmingly positive, with 85% saying they felt their company used data effectively overall. That said, one of the key takeaways from the survey was that respondents felt their company was only using its current data to 75% of its potential.

Interestingly, small and medium-sized businesses were found to be more likely (86%) to use their data effectively than large businesses (78%). Some of the sentiment, in terms of how companies could better use data, relating to both employees and customers; 55% of respondents felt their company could better leverage data to improve employee retention and satisfaction, and 55% also felt their company could leverage data more effectively to improve customer acquisition and retention .

For those who don’t work with data on a regular basis, it can sometimes seem difficult to understand and grasp, let alone analyze. But for those who use data daily in their work, how difficult is it to collect and analyze it? It turns out that 58% said collecting data was easy, compared to 24% who said it was difficult and 18% who said it was neither. Nearly 55% said analyzing data was difficult, compared to 30% who said it was easy and 17% who said neither.

Interestingly, when asked if using data to make decisions was easy or difficult, 49% said it was easy, 30% found it difficult, and 21% said neither. the other. According to respondents, what are the most common data challenges faced by companies? About two-thirds said the main challenge was the resource-intensive processes for collecting and analyzing data, while 52% said a major barrier was uncertainty about how to start collecting or to analyze the data.

Certainly, there are problems that can be caused by the inefficient use of data. The unsupervised survey highlighted the most prevalent issues, with issue #1 being varying interpretations of results (55%), followed by confusing results (54%), inability to use results (40 %), and results too complex to interpret (38%) or misleading (19%).

The study made a point of focusing specifically on KPIs, asking respondents about the key KPIs their companies are tracking as well as areas where they can improve them. An overwhelming 95% of respondents felt their company had room for improvement with KPIs, with the most common areas for improvement being having more relevant KPIs (65%), using them better ( 61%) and to have more KPIs overall (57%).

Employee performance was the top KPI tracked by respondents’ companies (69%), followed by marketing and sales (46%) and employee habits/behaviours (43%). Interestingly, only 38% of respondents said revenue and profitability were the top KPIs measured at their company, while only 30% said customer metrics.

The survey also showed that 59% of companies consider profit margin as one of their top three key performance indicators, and 34% place employee satisfaction among their top three, which is particularly interesting given the challenges that often accompany tracking this type of metric.

The results on KPIs are particularly remarkable because of the importance of KPIs for the growth of an organization. Much has been writing how crucial these indicators are and for good reason.

Overall, the study showed that while data is seen as crucial to business success, many businesses still have work to do when it comes to effectively collecting and leveraging data. There is a number of reasons why data is critical to success: it helps to gain insight into demographics, conversion rate, consumption habits and so many other important elements that help inform the direction of a business. With the right approach to take advantage of the most important types of data, it can undoubtedly enable a business to achieve the best possible results and performance. The survey indicates that employees who work with this data daily often feel that the information they use in their day-to-day functions is not always used to its full potential and that companies can significantly improve the way they collect it. and analyze this data. information.
US companies rely on data but have room to grow

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