Data has become a dirty word for some small and medium-sized UK companies. But digital insights can save you money and win you extra business.
Data has had a tough year, mired in controversy. Facebook and others have been accused of misusing people's personal information, provoking political storms either side of the Atlantic. But small and medium-sized companies (SMEs) in the UK have also been dragged into the wider drama, with the arrival of the General Data Protection Regulation (GDPR).
GDPR has been tough for small UK businesses because it subjects everyone to the same standards as the giant corporations. Data protection regulation already costs small firms an eye-watering £7 billion a year, according to research from the Federation of Small Businesses. But the changes needed to deal with the new GDPR rules around personal data are thought to have added another £5 billion to the bill . In addition, there's all the stress involved and the threat of huge potential fines for non-compliance with the new rules.
So it's no wonder that whenever data is mentioned, SMEs in the UK may just feel like running for the hills. However, treating data like the plague is a big mistake, because it can help to transform your fortunes. And you don't need to be a Google, Amazon or Facebook to benefit. For example, getting information from Elavon about the spending behaviour of your overseas customers can provide some unique and valuable insights.
Here are three ways that data can help SMEs...
#1: Understanding customers better
Few UK SMEs can afford expensive market research. But spending data can provide a wealth of actionable information that's personal to your business. You can rely on hard facts not vague guesses.
Using data from transactions, you can start to see the big picture ... which countries your customers are coming from, when they visit, how much they spend and which audiences are the most profitable. From there, you can spot patterns and peaks and also predict when some nationalities may be more likely to visit you.
#2: Improving the visitor experience
Armed with the facts, you can find ways to make your business more appealing to visitors, whether it's about providing signs and information in different languages (online and offline) or hiring staff who speak the languages of your most lucrative guests.
Extra tips and training on cultural preferences and greetings could help everyone in your team — and those nice touches could help to encourage return visits from customers.
#3: Driving up profits
Knowing more about overseas visitors means you can provide special offers when different groups hit their peaks, for example, during national holidays when visitors from different countries tend to travel.
You can perfect your digital campaigns too. UK small businesses are planning to increase their marketing spend in 2018/19 — using an average of around 16% of their budget and with social media as their top priority . But you can avoid the risk of wasting limited resources. With visitor insights at your fingertips, you can target the right visitor groups with the right offers at the right time.
Finally, don't keep the data to yourself ... share the most relevant stats with your employees. It's not only good for teamwork and morale, but transaction totals can easily be turned into targets for employees to beat each month.
They may also want to compete against their colleagues at other sites, such as your London location team versus your Edinburgh operation, for any incentives you offer them, based on who earns most revenue from different groups of overseas visitors.
 'The mountain of regulations facing SMEs' (Financial Director, 25 June, 2018)
 'UK small businesses planning to increase marketing spend in 2018/19' (MarketingTech, 19 February, 2018)