Given the dynamics of today’s business environment, data management has become more critical than ever. Any company’s success is dependent on the quality and efficiency of team collaboration and the ability to make the right decisions at the right moment. Unless you have real-time or fresh data, your choices are fueled by out-of-date information, but doing business through guesswork can lead to missed opportunities. Let’s find out more about the importance of fresh alternative data in business.
What is fresh alternative data?
Alternative data is defined as more related to what it is not, rather than what it is. Essentially, alternative data refers to non-traditional sources of information. This can be web-scraped data, for instance, or information collected from websites, social media, and more. Fresh data is defined as up-to-date, current information that can be immediately used, and it is both trackable and actionable. A fresh data source has to be accessible and constantly up-to-date.
Why is fresh alternative data crucial in business?
Research shows that 94% of IT decision-makers state that it is important to have a system that permits the flow of fresh data. However, nearly 60% of the respondents state they are not able to use fresh or current data, and 51% of participants stated that they do not have access to current data when they need it. However, these are some of the reasons why it is crucial in business.
Making data-driven decisions
All businesses, regardless of their industry and focus, are required to make daily decisions, whether on a short-term or long-term matter. In this case, two main factors determine the success of the decision: the timing and the accuracy of the information. In other words, making a data-driven decision based on out-of-date information is detrimental to business, and you can easily make the wrong decision, especially in today’s fluid business environment.
At the same time, data-driven decisions in business must use accurate, verifiable information, not only fresh data. This often takes time and delays the entire process as the decision-maker must corroborate information from different sources and ensure accuracy.
As more and more information is generated each second, the importance of fresh alternative data in business grows. The complexity relies not only on how correct the information is but mainly on how fresh it is—accessing a fresh data source guarantees that the information is always up-to-date and displayed in an actionable format, ready for implementation.
Error-free fresh data drives performance
Another application of fresh alternative data is to ensure that you take advantage of every single business opportunity. Incomplete, out-of-date information can lead to loss of revenue. For example, businesses can be disrupted by a lack of product availability. You can use fresh alternative data to fine-tune your operations, check immediate quality and productivity, and even prevent delays.
The lifeblood of your business
In such a data-rich environment, access to information is key to your business success. Without access to fresh data, you cannot identify gaps in your current marketing strategies, business strategy, and day-to-day business operations.
Identify selling opportunities
B2B companies can use fresh alternative data to maximize their profit opportunities. Apart from simply getting to know your clients, you can use fresh data to identify when a customer or a potential client needs your services or product.
For example, an insurance company uses fresh alternative data to have a better insight into its potential clients. This dataset indicates that a local company bought another factory in the area. Having access to this information before your competitors ensure your success as you can approach the client and offer your services – to ensure the client’s freshly bought goods.
Access to immediate, reliable, and accurate data helps you achieve a solid competitive advantage and take advantage of business opportunities. In other words, being unaware of your clients means missed opportunities. Keeping customer data fresh also helps customers connect with you, know when to send them product recommendations, and even improve customer service, leading to higher satisfaction and customer retention.
Getting to know your competition
The competitive landscape is always on the move, no matter the industry and sector. Businesses accessing fresh alternative data regarding their competitors can have a better insight into their performance, business strategy and even predict rivals’ strategic moves.
For instance, a retail business can look into alternative data regarding its direct competitors. This can show information related to job postings or hiring – in other words, you can determine if your competitor is expanding or cutting down on its staff. Even more important, you will be informed of their moves before they reach the public, so you can come up with proactive strategies to retain or even expand your market share.
All in all, fresh alternative data is crucial in business. Data-driven decision-making allows you to stay on top of your competition, get to know your customers, and identify selling opportunities. You will be much less likely to be caught off guard regarding the competition or if there’s a major change in consumer behavior. All of these insights are essential for the advancement of your business and can be achieved by accessing a fresh data source.