How To Use Data Analytics to Your Advantage When Setting Q3 | Contributed Content
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Every business owner knows that setting goals is crucial for progress and success. This concept is especially true as a new quarter approaches, providing an opportune time to reassess and refine your objectives.
“Since most of the world’s data is unstructured, an ability to analyze and act on it presents a big opportunity,” explains Michael Shulman, head of machine learning at Kensho.
Rather than going into the new quarter relying on previous goals and strategies, consider using data analytics to inform strategic decision-making. The year might be halfway over, but there’s still plenty of time to refresh your business approach and achieve the goals you set back in January.
What Are the Benefits of a Q3 Refresh?
Staying agile and competitive in business requires constantly reevaluating your strategies and goals. The beginning of Q3 offers an especially effective time to realign your goals based on evolving market dynamics and internal capabilities.
“The third quarter can be tough for some businesses,” says Shaunak Amin, CEO and Co-Founder of SwagMagic. “You don’t have the enthusiasm of Q1 or the fervor of Q4 driving employees. Reassessing business goals and doing a sort of Q3 refresh is a helpful way to light a fire under your workforce and ensure that you’re on track for the remainder of the year.”
An annual Q3 goal refresh will also allow you to foster a culture of adaptability and innovation within your organization. Taking a proactive approach to growth encourages individuals and teams to adjust their strategies and tactics in response to changing circumstances. The value of setting Q3 goals goes far beyond the goals themselves, ultimately allowing you to optimize your performance and drive growth in the third quarter and beyond.
How Can You Use Data Analytics as a Goal-Setting Tool?
From simple statistical analysis to complex algorithms and machine learning models, data analytics is essential for strategic decision-making. It provides a wealth of information that can inform short-term decisions and overarching goals, driving growth.
“Making business decisions without data behind them is like flying a plane with your eyes closed,” says Natalia Kuvelas, Marketing Manager of Custom Goods. “Data analytics are a gold mine for the smart business owner and should inform your long-term strategic goals.”
By leveraging data analytics, business owners can gain a deeper understanding of customer behavior, market trends, and operational performance, allowing them to make more informed decisions and identify areas for improvement. Below, eight business leaders identify key ways to maximize your goal-setting success with the use of data analytics.
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Review Performance
Collecting and analyzing data from previous quarters will allow you to identify trends in consumer habits and workforce productivity. It allows you to pinpoint areas of weakness to strengthen in the next quarter and successes to ideally replicate across the business.
“It’s hard to get a complete picture of your business’s performance without data analysis,” advises Travis Mydock, DUI lawyer St. Augustine, FL of Mydock Law.. “Your data includes KPIs, workforce habits, and even smaller pieces of the puzzle, like consumer demographics and sales numbers on individual pieces of merchandise.”
Think carefully about what data will be most useful for you moving into the second half of the year, and plan your collection and analysis accordingly. Understanding past performance can help you set realistic and achievable goals for the upcoming quarter.
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Identify Key Metrics
Collecting a broad amount of data may be useful for the big picture, but key performance indicators (KPIs) should be the essential framework your objectives are built on. Determine the KPIs that are most relevant to your business objectives, then create a plan to capture them and assess how to improve in Q3.
“When planning a business refresh, it’s always a smart idea to look at KPIs,” says Anthony Tivnan, President and Co-Founder of Magellan Jets, a company that specializes in charter jet flights. “They spotlight the areas of your business that should be flourishing. Whether those particular regions are actually flourishing can inform the goal-setting process moving forward.”
Whether it’s revenue growth, customer acquisition, or operational efficiency, focus on metrics that are most indicative of your overall business success and align with your overall goals. These metrics should shape both your Q3 business goals and your overall strategy moving into the second half of the year.
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Conduct Market Analysis
Data analytics provides business owners with valuable insights into consumer behavior, market trends, and competitive dynamics. This information is critical in informing future business decisions and strategic goal-setting.
“Market analysis is one of the best ways to discover untapped opportunities for growth,” explains Francesco Gatti, CEO of Opensend. “Understanding industry patterns is also essential to gain a full picture of consumer preferences, which is just one reason among many why data analytics should be a key part of your business strategy.”
Information such as competitor activities, market saturation, and performance benchmarks can be helpful in making informed decisions and crafting a strategy for Q3. This information, collected through diligent market analysis, can help you identify opportunities and threats that may impact your Q3 goals.
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Use Predictive Analytics
Predictive analytics allow the savvy business owner to forecast future trends and outcomes based on historical data. For instance, a retail business can use predictive analytics to anticipate seasonal fluctuations in demand, while a financial institution might employ predictive analytics to forecast customer churn or identify credit risk.
“Statistical algorithms can identify correlations and trends within large datasets that the human eye cannot,” Erin Banta, Co-Founder and CEO of Pepper Home explains. “This data allows business owners to make accurate predictions about future events and mitigate risks down the road.”
By using predictive analytics, you can anticipate potential challenges and opportunities, allowing for more strategic goal-setting.
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Segment Your Data
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Data analytics allow business owners to divide customer data into meaningful segments based on factors such as demographics, geography, or purchasing behavior. These segments allow for more targeted marketing tactics and more specific, achievable goals.
“If you haven’t done so already, consider using data analytics to create market segments,” recommends Justin Soleimani, Co-Founder of Tumble. “These highly specific customer profiles make it easier to understand both how your business has historically performed among different types of customers and where it’s heading in the next quarter.”
Data segmentation is especially useful at the halfway point of the year because it allows for targeted goal-setting and personalized strategies, maximizing your effectiveness among your most important customer base.
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Employ A/B Testing
A/B testing can provide valuable data and insight into the most strategic path forward for your business in the second half of the year.
“A/B testing is basically a controlled experiment for your business,” explains Mara Dumski, Chief Fragrance Experience Officer of Pura, a company known for their smart fragrance air diffuser. “By providing two versions of some aspect of your business, whether it’s a webpage, marketing campaign, product feature, or pricing strategy, you can gather valuable insights into customer preferences and behaviors.”
Data analytics tools provide a data-driven approach to optimizing your business and staying as competitive as possible heading into the holiday season. Analyzing the results of these tests can guide decision-making and refine your Q3 goals accordingly.
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Embrace Real-Time Analytics
One key aspect of data analysis is that it should happen in real-time as well as when looking back at historical performance data. Take advantage of real-time data analytics to monitor progress toward your goals and make timely adjustments as needed.
“If the past five years have shown business owners anything, it’s the importance of resiliency and agility in business longevity,” says George Fraguio, Vice President of Bridge Lending at Vaster. “Being able to survive volatile market conditions and unexpected global events requires having a finger on your industry’s pulse at all times.”
By staying agile and responsive, you can adapt to changing market conditions and optimize performance. Embrace real-time analytics and ensure you incorporate consistent monitoring into your Q3 business goals.
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Collaborate Across Departments
Rather than functioning in a silo, ensure that departments are collaborating, sharing data and perspectives for a more robust picture of business performance. Cross-departmental collaboration is essential for preventing important pieces of data from slipping through the cracks.
“Data is far less useful without broader contextual information,” explains Cody Candee, Founder and CEO of Bounce. “Team-based settings that prioritize collaboration make it easier to see the big picture in the data, rather than getting bogged down in the details.”
By integrating data from various sources, you can gain a holistic view of your business and set more relevant and useful goals.
Making Informed Decisions
Data analytics are a powerful tool for business owners. They can provide valuable information on the strengths and weaknesses of your business, enhance the goal-setting process, and drive business success into the second half of the year.
Elbert Hubbard, American writer and publisher, once said, “Many people fail in life, not for lack of ability or brains or even courage but simply because they have never organized their energies around a goal.”
By leveraging insights from past performance, market analysis, and predictive analytics, you can set informed and achievable goals that propel your organization toward excellence.
