The Wall Street Journal recently published an article titled “The Big Mystery: What’s Big Data Really Worth?”
The article begins by exploring the fact that even though entire companies are built around the collection and sale of customer data, no one really knows how much all that information is actually worth – despite some companies’ attempts.
“Data isn’t a physical asset like a factory or cash, and there aren’t any official guidelines for assessing its value.”
The article continues with the idea that as more companies use big-data analytic tools to identify ways to generate revenue, it’s “widening the gap in our understanding of the modern business world” due to the lack of standards for valuing data.
But the real issue here is not how to accurately monetize intangible assets like data.
And the reason for that is simple – just having data is worthless.
The data only becomes valuable when companies know how to structure it, how to use it, and how to benefit from it.
Yet often organizations get too focused on the “big” aspect of big data – believing that if all their data is in one place, it will just shell out insights.
This simply isn’t the case.
Decision makers need to focus their conversations on asking the right questions so they can turn those mounds of data into the answers they’re looking for – the answers that will streamline operations, enhance productivity, customize marketing outreach to both current and potential customers and ultimately improve the bottom line.
But therein lies the biggest challenge companies face; they don’t know what the right questions to ask are.
Moreover, most companies don’t have the predictive tools or the teams needed to uncover the insights necessary to utilize the data to its full potential.
It’s also critical to note that with more consumer data accumulating every day and the extensive ramp-up time involved in building an in-house analytics team, most companies will be best served by turning to a partner for help in managing and deriving those insights from the data.
At the end of the day, by employing the proper predictive analytic solution, it’s possible for companies to:
- Predict the best new locations
- Optimize franchise territories
- Put the right products on the right shelves in specific trade areas
- Know what their optimal national footprint looks like
- Decrease marketing spend, but increase campaign ROI through more targeted and efficient advertising
- Break down silos, putting marketing, real estate and operations on the same page
The Bottom Line
The majority of companies have barely scratched the surface of data-driven insights, and the players who fail to tap into the vast pools of data properly will be left behind due to the accelerating pace of business.
This means that more decisions are required of you every day and the ability to get answers from your data sources needs to be just as fast.
While this may seem like an insurmountable challenge, it’s okay.
There are ways for companies to gain granular-level insights without maintaining cumbersome data collection infrastructures.
Buxton’s robust predictive models have helped thousands of companies guide the execution of their real estate and marketing strategies and they can do the same for you.
Are you ready?