Why does Data Driven Companies perform better than their competition?

Author : Susan Robinson | Published On : 22 Dec 2023

We are now in the age of digitalization- with technology, market, and customers evolving at such a fast pace, it is becoming challenging to keep up. However, data has been the only consistent factor in this dynamic world. As a result, several businesses and industries have adopted a Data Driven culture in their organization.

Subsequently, what change does it bring? How does being Data driven help the companies perform better?

Cymetrix, a well-known Data Analytics Company in the USA & India, has been working with organizations throughout the globe to help them fulfill their data endeavors. With over eight years of experience across multiple Industries, our team is here to highlight - Why Data Driven Companies perform better.

However, before we learn more about this topic in detail, let's first take a moment to understand 'What does being Data Driven' mean.

What does it mean to be Data Driven?

Okay- if you own a business, you would know that every strategic decision can affect your business's performance. However, with a Data-Driven approach, you can make crucial decisions based on data analysis and interpretation rather than intuition or gut feeling.

Therefore, you can make better and more informed decisions that will be more likely to have a favorable outcome while avoiding potential risks (For instance, change in market trends).

Let's look at Netflix as an example to understand precisely how companies adopt a Data Driven approach. Every aspect of their business, including content production and user recommendations, is informed by data. They collect Data from a variety of sources and extract insights, such as:

What content do users search for
What content users rate and review
What content users add to 'My List'
What content users watch, and for how long

Consequently, it helps them decide which content to produce for their audience and which movies/shows to recommend based on their 'My List' or search history.

How can being Data Driven help you perform better?

Are you aware of the fact that approx. 92% of companies achieved measurable results from Data and Analytics investment. That highlights the growing significance of Data Driven approach by modern businesses. But let's see how being Data-Driven helps companies drive better results:

Informed Decision Making

The first and foremost reason why Data Driven approach is a game-changer is informed decision-making. As mentioned above, some strategic decisions could lead to a 'Win or lose' situation for an organization.

So, making such a critical decision based on gut feeling or instincts without reliable data and insights can be fatal. That is precisely why top and best-performing companies always make decisions based on reliable Data.

If you want to know more, don’t forget to check out What is Data Driven Decision Making.

Better Understanding of Your Customers

In this customer-driven world, the success of any business relies on how well they understand and treat their customers. However, what is the role of a Data Driven approach?

To be precise, like analyzing any other Data, Data Analytics can even help you analyze your customer's behavior and patterns. Consequently, you can better understand your customer's interests, preferences, tastes, etc. That implies you can ensure your clients have the best experience while creating an efficient marketing strategy.

Predict market conditions

As we mentioned in the beginning, everything is evolving at an alarming rate, and the market is exceptionally dynamic. Regardless of that, top-performing companies manage to outperform competitors.

How so? With a Data Driven approach, they always manage to predict marketing conditions and avoid possible risks (viable through predictive analytics). What's more- they also get a chance to identify new and untapped business opportunities.

Analyze business performance

What if you always have a way to know where your strategy went wrong? You'll always be able to figure out a way to optimize it- right? Let me tell you- that is precisely where Data Driven culture steps in!

A comprehensive understanding of all departments and operations inside the organization is always possible using data analytics. So, even if something goes wrong, you can figure out how to fix it.

What does that mean for you? Let's see an increase in efficiency, seamless business processes, cost reduction, and clear accountability across departments.

Improved agility and scalability

Have you ever heard of real-time insights? You know what, you can get immediate insights with modern data applications and technology. So, what does that mean- no matter where you are, you will always have access to real-time data.

You can take crucial decisions faster, stay updated with market changes, quickly tap into new opportunities, and scale your operations.

How to implement a Data Driven Culture?

You must be wondering how to become Data Driven now that you know how important data is for your company. Well, it isn't as simple as that. You would need to implement a Data Driven Culture within your organization. Here's how you can get started:

Start with Top Management: The primary step should be to get top management committed to using Data. If they are not dedicated, getting the rest of the organization on board will be challenging.
Educate your employees on data literacy: Your employees and staff are your company's workforce. They have to understand the value of data and how to use it to adapt to a Data Driven Culture. You can organize training programs, sessions, and workshops for the best results.
Make Data Accessible and Reliable: So, let me ask a question! If your employees don't have access to reliable data, how will they adopt a Data Driven Culture? Your primary obligation should be to ensure your team has easy access to accurate data.
Invest in appropriate tools and technology: Do you know that lack of proper technology is among the key barriers to the effective use of Data? You need to invest in appropriate tools to make it easier for your team to analyze, collect, and visualize data.
Encourage Collaboration and sharing: Data Driven decision-making tends to work best when different departments collaborate and share insights. For example, if the marketing department collaborates with the Sales team and shares relevant insights, they could close the deal quickly and provide a better experience to customers.

Key takeaway

As we continue to evolve and generate more and more data, the ability to utilize that data effectively will decide which companies will rise to the top and which will have to struggle. The companies that make the best use of this valuable resource will be the ones to outperform their competitors.

However, even if you have the necessary data and are ready to implement a Data Driven culture, the intricacies of technology trends and other implications may arise. That is why it is best to have a strategic partner by your side, such as Cymetrix - a leading Data Analytics Consultant. So, what are you still waiting for - Schedule a consultation now and get started!