Based on anecdotal evidence and a lot of real statistics, it is apparent that entrepreneurs are becoming younger than ever before. High school and college graduates are diving into business ownership far more often than before and that is creating a new wave of innovation and opportunities across the world. However, that also leads to issues surrounding lack of experience and business know-how.
One major area that can be challenging to new younger entrepreneurs is the need for data analysis and gathering. There is access to more data than ever before, but how do we ascertain what is necessary and relevant.
Why great data is required for growth
We look at 3 ways for young entrepreneurs to effectively manage their data analysis.
Focus on quality over quantity.
“Quality over quantity” is a common phrase in many industries and activities, and is a common refrain in data science as well. However, being able to identify how the balance or what is real quality is often easier said than done. With the ever-increasing volume of big data can be a huge challenge for a young entrepreneur that may lack experience.
Some of the issues that many entrepreneurs face is being able to differentiate between real and fake traffic on their website, as well as true followers on social media accounts. There is so much data that needs to be analysed it can be a daunting task for a small team.
Using technology solutions to help alleviate some of this challenge is a viable option for many new entrepreneurs. Simple tools like Tableau Public or Refine can be useful and quite affordable options for entrepreneurs to use to filter the data that we gather. Tools like these are designed to gauge a business’s most important metrics and funnel them into number-driven rationales for marketing, targeting and re-targeting campaigns.
Being proactive is a must
One benefit of being from a younger generation might be the ability to foresee future trends due to the fact, there is an entire generation of founders and future entrepreneurs that have grown up in the current fast-moving culture.
Trends move quickly nowadays, so learning to act anticipate rather than react might not be too much of a challenge for this generation. By being able to predict or identify trends faster, young entrepreneurs can gather and analyse the data to find ways to leverage on the trends.
The speed of the eCommerce industry is one such example to consider and entrepreneurs in this space have to be proactive and on-the-ball to stand out and make any impact in this crowded space. By identifying consumer trends and even industry trends in fashion, electronics and the accessories market – eCommerce players can gain significant market share.
Personalise within reason
Personalisation is still key, but consumers are becoming more averse to what they see as invasions of privacy and data intrusions. In the current climate it is essential to communicate with your customers so they know what information you’re gathering and what you’re using it for.
The problem is that as an entrepreneur, you need to learn a lot about their customers in order to cater to them. Besides effective communication, entrepreneurs also need to show consumers that they are taking the appropriate measures to protect their data. Be open about the protection being used and how it helps keep their data safe.
5 assumptions that marketers make about location data that need to stop
When it comes to personalisation, it might be a good idea to keep it within reason. A person’s name and general preference for electronics over perishables might be more acceptable when it comes to personalised marketing than an intrusive remarketing campaign that can annoy a customer.