Data Insights for Business: What's the Big Deal With Data Anyway?

Ever wonder how some businesses always seem to have the right product at the right time? It’s not luck—it’s data. That’s what this blog is all about: how business owners can get their data to work for them.

I decided to start writing a blog this year to talk more about what Blackbear does: data, business analysis, and strategy. I had a few ideas about what I wanted the blog to look like, but having never blogged before I went on something of a "discovery quest" to find out how the whole thing works. This of course led me to reading other blogs. I discovered a lot of really valuable information, read some great opinion pieces, and found a lot of people with excellent tips and tricks to use when working with data.

I came across plenty of valuable how content: how to data wrangle, how to analyze, how to use this tool or that language. All of that how stuff is really important, especially if it's what you're interested in, or what you do for a living. But how about the what and the why of data? More specifically - what exactly does data empower us to do, and why is it so important?

Cutting Through The Buzz Words

I'm sure most of you have heard or read the what of data many times before. Maybe the company you work with claims it's a "data-driven organization", or a service you use is able to deliver "data-backed insights". Buzz words aside, this is where we get to the heart of it: what exactly does data empower us to do?".

Data empowers us to find insights. Collecting and analyzing data allows us to find patterns, identify trends, and ultimately make better decisions because we are able to clearly see those patterns and trends. Let's use a couple of simple case studies to see what this looks like:

Case Study: The Coffee Shop Pastry Problem

The Situation:

The owner of a small coffee shop in Calgary notices that some pastries sell out quickly, while others sit on the shelf for days, and they can’t pinpoint why. They often end up making guesses about what customers want, but this leads to wasted inventory and missed sales opportunities.

What The Data Reveals:

By tracking sales data and time of purchase, the owner sees that muffins are a hit during the morning rush, while cookies sell best in the afternoon. They also discover that iced coffee sales peak on sunny afternoons, but many customers leave without pairing it with food.

Case Study: Weathering The Storm in a Retail Gear Shop

The Situation:

The owner of an outdoor gear store in Red Deer knows that insulated jackets sell in the winter, and summer gear starts selling in June. The problem is they're always guessing how much stock to order and when. Last year, they ran out of jackets in November and lost sales for weeks until their next shipment arrived. They also had to discount unsold tents at the end of summer, which ended up cutting into profits.

What The Data Reveals:

By analyzing sales data, seasonal weather patterns, and historical data, the store owner uncovers some critical insights. They discover that jacket sales spike when an early cold snap hits in the fall, but demand drops sharply in late December. They also see that tents sell well before long weekends but tank if the weather forecast predicts rain.

Why Does it Matter?

So collecting data and analyzing it empowers us to generate insights - it shows us what we're missing. That's the what of data, but this still leaves us wondering why; why are these insights so important?

The simple answer is that it’s all about creating value. With the right information, business owners can make smarter decisions and plan ahead with confidence. Let's go back to our case studies to see what this looks like:

Case Study: The Coffee Shop Pastry Problem

What Changes With Data:

The owner of the small coffee shop revisits their strategy. Because they were able to identify the trends they stock more muffins early in the day, they now offer an "Iced Coffee & Cookie" combo for hot afternoons, and they've reduced or eliminated the pastries that rarely sell.

Because of this strategic shift waste is reduced, revenue increases, and customers feel like the shop "gets" their preferences. The coffee shop gains a reputation for really knowing the community, and creates a strong foundation of loyal repeat customers.

Case Study: Weathering The Storm in a Retail Gear Shop

What Changes With Data:

The store owner uses predictive analytics to adjust inventory and revise their marketing strategy. When a cold front is in the forecast, they highlight value by running a "Stay Warm This Winter" campaign, and offer bundle discounts on jackets, hats, and gloves to encourage larger purchases. The store owner boosts the store's visibility by running targeted ads for jackets and winter gear, focusing on affordability and quality. Most importantly, everything is tracked and popular sizes are automatically reordered to ensure stock meets forecasted demand.

To address the tent situation the store owner starts running strategic promotions, advertising lightweight tents during sunny weekends and offering discounts on rain gear during wet weather. They've also started using the store's website to promote customer education, sharing helpful content like "Top 5 Outdoor Essentials for a Weekend Camping Trip" to attract customers who are planning outdoor adventures.

With insights in hand, the store owner no longer feels like they’re “flying blind". They maximize sales during peak demand, avoid overstocking, and protect their profit margins. The owner builds trust with customers and still is able to maximize the store's sales. The business becomes known for being proactive and reliable - always having what people need - and creates a loyal customer base that appreciates excellent service.

The Big Picture (TLDR)

Without a data strategy, business owners often rely solely on gut instinct. This leads to missing opportunities, running less efficiently, and feeling frustrated. With data, and the right tools, business owners can see exactly what’s happening in their business and take targeted, confident action that drives results.

Don't believe me? Start small - track one key metric really well, like daily sales or customer foot traffic, and see how it changes your decisions.

Want to chat about how we can make your data work for you? I'd love to help - get in touch!

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