When we first wake up, we read through social media platforms like Instagram and see images of newlyweds, families, and other intriguing life-changing occasions. This has also made people launching their own firms more common.
The days of folks working a 9 to 5 job for decades are long gone. Today, there are more enterprises than you and I can ever conceive, and we’re all always yearning for a change. This has also made the rivalry incredibly fierce, and every company, no matter how big or little, is competing against one another. Having said that, a firm is constantly seeking better and more intelligent ways to operate. Basically, your goal is to outperform the competition by being smarter, more effective, faster, and any other trait.
We are aware of that. We are also aware that technology is a key factor in achieving this, and there is one resource that is widely accessible and usable by everyone. That’s right, it’s data.
When data is used properly, it can aid any organization in reaching wise judgements. Traditional data sources are still a wonderful method to plan and accomplish your objectives, but you now have access to other data sources that can help you go above and beyond. Alternative data is not just about going above and beyond; it is also slowly becoming vital to unlock its untapped potential. Let’s first clarify what alternative data is and why firms are interested in using it.
Alternative Data: What is it?
In essence, alternative data is gathered from non-conventional data sources. As users, we continually produce data while browsing the internet, navigating through social media, and using UPI applications or cards to make purchases. Alternative data sources are those that produce data from unusual sources and sources from which it is gathered.
Why Do Businesses Use Alternative Data Solutions?
Geolocation data, point-of-sale transaction data, desktop and mobile applications, websites, etc. are a few examples of current sources of alternative data. As more companies switch to an online model, more data is made available. Alternative data assists in giving you more precise insights into a range of variables that are important to your company. The reliability of decisions made with the aid of alternate data is higher.
Utilising alternative data can occasionally reveal information that you were unaware of or hadn’t taken into account before.
The Top 8 Ways That Businesses Can Utilize Alternative Data
- Data-Driven Decisions
There is a wealth of other data available. When making decisions at different levels in the daily operations of your business, you can use this data. For instance, you can better understand how your company is performing and make decisions that will enable you to expand with the aid of macro-market level data acquired from different sources.
Making decisions based on data will enable you to see the situation more logically while avoiding messing with your emotions.
Also, take ideas from our previous blog on: The KENTRIX Advantage
- Obtaining a Macro-Market Understanding
You may grasp the market as a whole and obtain a macro-market level perspective. The accuracy that using alt data provides is important to highlight, even if this can also be done using standard data sources.
You’ll be better able to comprehend the performance of the market as a whole and of your firm by taking a broader view. You will be able to see anything that might be hiding right beneath your nose if you use alternative data glasses.
- Identify your competitors.
- Making use of People & Places Data
You can research consumer behaviour and identify your target group using a variety of alternative data sources. You will work to promote your product on Amazon if your target market buys the goods you sell there.
Additionally, location data combined with behavioural data on people might aid in the development of your offline presence. You can choose where to open your physical store, for instance, by taking into account various elements in this type of data. And Kentrix is the means for you to identify right places data.
- Gather Information About Your Goods or Services
If you open the internet and conduct a search for any company or item, you will discover that people are discussing it in comments, reviews, etc. This enables you to learn more about how consumers are viewing your goods or services. This can be used in an organised fashion to improve current offerings or generate fresh concepts that will appeal to your target market.
You may also determine whether you are reaching your target audience by using alternative data and techniques, such as Google Analytics, and you can also determine where the gap is.
Additionally, you can learn more about your clients’ origins, their preferred items, the locations where a lot of your products are sold, etc. This enables you to more clearly see and comprehend your target market. These types of data insights can ultimately help you allocate your sales and marketing budget more effectively.
- Plan or Strategize the Upcoming Steps
We are aware that there is a wealth of untapped data out there, and whatever action or choice you make using it will assist you in achieving your company objectives. Along with this, developing actionable insights through analysis can assist you in constructing a road map that will assist you in achieving your objectives with a predetermined strategy.
You can improve your offline and online resource planning efforts wherever they are needed by understanding your whole market and the gap percentage. Planning and strategizing with the aid of alternative data will help you create attainable, quantifiable goals for every level of your organisation.
The likelihood of winning the treasure hunt increases when you and your teammates/employees have a map in front of you that directs you to the treasure chest.
Also, take ideas from our previous blog on: How do I get the most out of consumer data?
- Increasing Sales
Alternative data integration naturally reduces the danger and uncertainty of things going wrong in your business’s multiple processes. As a result, it will ultimately assist you in achieving your business objectives, and the proper data analysis can also increase sales.
You can streamline this procedure with the help of businesses like Kentrix. Sales Intelligence, one of their product offerings, uses alternative data to provide you with insights about how to increase sales.
- Future Prediction
You will be able to foresee some future events to some extent by being aware of market trends and other aspects that affect your company.
Depending on how things are looking, you can either accelerate or fasten your seatbelt when you can tell that the market conditions are likely to shift. When integrated, historical data, internal sales data, macro-market data, etc., can offer insights that can improve your plan. You can use predictive analysis modelling with the use of artificial intelligence, machine learning, and alternative data to determine whether you are targeting the appropriate locations, where you should be targeting, etc.
When you include alternative data in your business equation, you have access to a vast array of opportunities. Businesses are exploring new applications for it to keep you on top.
