Why Every SMB Needs a Data Strategy and How to Build One

In today’s landscape, every SMB has strategies for sales, finance, and operations — but too often, data gets left out. A data strategy organizes, governs, and deploys your company’s information assets in a way that aligns with your core goals.

What is a Data Strategy?

Think of it as your roadmap for managing and using data across the organization. A well-crafted data strategy ensures that data capture, analysis, and utilization are woven throughout the organization, supporting key goals and initiatives. The starting point for an SMB data strategy should be the organization's core imperatives - whether that's growing revenue, increasing operational efficiency, etc. The data strategy then lays out how data will be leveraged to drive progress towards those objectives.

Why SMBs Need a Data Strategy

Many SMBs struggle because their data is fragmented across systems, resulting in poor visibility and missed opportunities. Imagine a company that didn’t aggregate sales data from a third-party platform — they failed to realize that you, an existing customer, had purchased the item on a different site that had a promotion. Instead of recognizing you as a customer, they treated you like a missed sale or abandoned cart. They are desperately trying to grow their revenue, but their strategy is to send you an email to “not forget this item!” Where instead, they should be asking how you liked it! Or recommending new products!

Or consider a small retailer that did implement a data strategy to understand in-store and online customer behavior. By centralizing data and using simple analytics, they discovered that customers who engaged with their blog were 30% more likely to make purchases. With this insight, they focused marketing efforts on driving blog engagement, which led to a measurable boost in sales.

How to Build an Effective Data Strategy

A practical SMB data strategy has three components: people, technology, and process.

1. People: You don’t need a full data team in-house, but you do need data-curious team members. If hiring isn’t in the cards, outsource for the expertise you need!
2. Technology: Today’s tech landscape offers accessible solutions like scalable cloud storage, visualization tools, and GenAI that make data insights easier to get your hands on.
3. Processes: Your data strategy needs consistent processes to manage data. This includes collection strategy, quality control, data security, and making data easy for teams to access when they need it.

Start Small, Keep it Relevant

A data strategy doesn’t have to be complex. Keep it focused on your top priorities, and revisit it regularly - about every six to nine months - as business needs evolve. For SMBs, this approach can turn fragmented data into a powerful tool for growth and efficiency, making a data strategy a must-have, not just a nice-to-have.

Need help with your data strategy or just want to connect about how data can work for you? We're here for it! Feel free to reach out to us at howdy@fullsendfinance.com!

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