There is opportunity in exploring data - financial and business. But I wonder how many small business owners position their decisions on their own business data? How many open their data door to enable future revenue pathways and future proof their business. It does not matter what your business type is (Florist, Project Manager, Retail, Food, Manufacturing) data is your friend, if you choose to let it be. Let me give you an example. Many years ago, before social media was a thing! Before websites were easy to construct. So different today for sure. Anyway, I was asked by friend to check in on a new florist who was setting up a florist business. At the time I was often in and out of the country looking after Asia Pacific for a New Zealand based software developer. One thing I know about kiwis is if they are asked to help, it is likely they will. Part 1: Long story short I arranged a catch-up at their new premises. The business owner had a strong background in flowers - a great asset for any start-up. Early on in the chat I asked about customers and marketing and data. For example; why was the customer buying the fowers and for whom (perhaps their mum, or an anniversay or perhaps an apology or maybe a birthday?) This is magic data for marketing newsletters, emails and can prompt repeat business. Bithdays and anniversaries come around every year. it can easily be collected on a paper form. Back then digitising data was not as easy as it is now. 'Great idea', they said. Part 2: I returned a year later to say hi and see how they were gtting on. As it happens they were doing well. I raised the question about whether they had collected any customer data. 'No', they said, 'it has been so busy, we never had time.' I worked out in the discussion that they had at least 1,000 customers over the business year and some were repeat customers. Lessons: Interestingly, for arguments sake, lets say that only 50% of customer data was collected for marketing and that of that only 10% made purchases from promotion activity. Lets also say that the average spend was $50. So 50 customers specnding $50 is $2,500. Imagine if was 20% of 500 customers. Back in the late 90's those extra sales would have been useful revenue and the data would have enabled additional business insights. 1) What marketing was best - Newsletter? Reminder emails? 2) What was purchased by whom - Gender, Age, Ethnicity? 3) What were predominant reasons - Birthday's, Weddings, Anniversaries, gifts? 4) Did the customer buy additional products - Small gifts, gift cards, more? 5) Were they drawn to Specials - perhaps created when business was quiet to generate more revenue? Those are a few examples of how data can drive sales. Importantly, knowing when a customers mothers birthday is (for examle) enables a reminder (say) a month out from the birthday. This one thing can create a more regular revenue stream and also build a loyal customer base. It is also a way of future proofing your business in difficult times. Funny thing is that one repeat customer multiplied a thousand times will positively impact the value of the business. That customer base is now an identifable and provable business asset. Did I mention that data opens doors... no argument... but you have to be deliberate in collecting that data. At Rebel we have been collecting data for six years and have now added extensive Longitudinal Study data to that matrix. As much as we want you to open data doors for your business we have to walk the talk ourselves. To see a review of some of the Rebel Longitudinal Study data and the impact of Rebel Business School Aotearoa on local and national economies follow this link.
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