The world that we are living in is covered with data. Today, the weight of data is the same as gold when you talk about corporate culture. So, the best thing that any organization, whether SaaS-driven or not, needs to seriously adopt a data-driven culture to sustain for a longer period.
Once your SaaS company adopts a data-driven culture, it can gather tremendous insights that can provide you with a competitive edge over other players in the market. Various leading SaaS companies have been using data-driven culture to fuel their success.
If you do not believe me, check out this example, An article written by Walmart titled “5 Ways Walmart Uses Big Data to Help Customers.” In that write-up, the author used the combination of big data and predictive models to predict demand throughout the day. This enabled the organization to place the right number of associates.
With the help of predictive analytics technology, it is possible to perform personalized recommendations according to the customer’s requirements. This can be very well looked into with the example of Netflix.
A user’s Netflix feed is customized with the help of predictive models by inputting the data like why they watch a particular show, the device being used, whether they paused in between the show and if they resumed the show after pausing, amongst other data points.
One of the industry’s biggest SaaS players, Netflix, uses data to drive its success. So, it is the right time for other SaaS companies to jump on the bandwagon and take advantage of this power of data!
Before proceeding further, let us look at the definition of a data-driven culture.
What exactly does data-driven culture mean?
Data-driven culture means an environment that derives insights from data to find new business opportunities, grow sales, understand customers, improve customer operations, and serve customers better. A data-driven culture is one that is based on empirical evidence and data points that allows leads to make informed decisions for positive outcomes. The basis for any outcome is data insights.
Why is data-driven culture a must for SaaS business success?
Many businesses collect data, but only through technology can one expect to solve problems. With technology, you can leverage stored data and reap benefits for SaaS companies.
1. Uncovers opportunities and drive investments
Data can display innovative ideas and insights that help companies chart out new revenue streams. When you have data insights, you can spot areas where improvement is possible. You can discover and unlock new opportunities through data science. You can see scope to drive investments and bring that revenue onboard.
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2. Encourages innovation and fresh ideas are tested regularly
A data-driven culture helps make decisions based on data. This also leaves room for innovation since all gaps in the process are visible. You can continually improve processes and test fresh ideas while monitoring the performance of existing ones. This helps coordinate tasks better, bring in new entrepreneurial advantages and execute better strategies.
3. Data works as a business asset to deliver a competitive advantage
Data helps maximize revenue growth. You can innovate, capture value, compete and deliver the best outcomes. This can deliver a better advantage. For instance- In healthcare, you can see the results of medicines, see where they were prescribed, understand the benefits and risks, and calculate outcomes. You can analyze and aggregate data to deliver better results. This will help you spot areas to improve your services to give you a competitive advantage.
4. Helps to compete with bigger businesses
A data-driven culture will enable automation for mundane tasks and simplify marketing, sales, product, and operational efforts. This leads to better coordination and time to compete with bigger companies. This also evaluates and delivers a precise analysis of the coordination between teams and customer-facing teams for better strategies in the market and target audience.
5. Comprehends the needs of the customers in a better way
Data-driven organizations understand customers better. They are aware of multiple customer touchpoints, customer journey, customer operations and more. They know more about the customer from the prospect stage. This takes them across the buyer journey stage as well. You can connect the data points to create a set of patterns that match the customer. This will help forge stronger customer relationships and lead to enhanced operations.
6. Increases the scope of continuous improvement
With data as an arsenal up the sleeve, companies can improve continuously. They can respond swiftly, identify major patterns, and customize products per customer issues. For example- A customer success team can see areas where customers ask the maximum questions. These questions can be compiled into a frequently asked questions booklet. These queries can help companies improve continuously.
7. Results in cost-saving and higher revenue
Data can help decode insights that help create revenue streams. You can reduce costs and maximize revenue growth. Data allows for companies to identify and notice revenue opportunities. You can see improved business opportunities, predict trends, and spot customer behavior. Data science and big data help companies achieve higher revenues and help in cost-saving. You can leverage and harness data analytics to create trends and potential in the market. You can also improve the performance of customer success managers, product managers, marketing teams, and hence grow revenues.
The increase in digitization has pushed SaaS companies to move towards data-driven culture. Although technology has played a key role here, B2B SaaS businesses need to be driven by data-driven strategy.
To utilize the data and analytics most effectively, SaaS companies need to have a strong leadership group of C-Suite executives to drive organizational transformation. This can be done through effective data management and continuous improvement. 21
Becoming a data-driven SaaS organization is a big-ticket to competitive differentiation, albeit it requires a disciplined approach!
Dattatraya Shetty is an IT Professional with 2 Decades of experience in areas of Product Development, Implementation & Service Delivery Management. As the Head of Implementations and SOC Compliance in Smartkarrot he is on a mission to provide relishing customer experience.
Published January 20, 2022, Updated March 02, 2023