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Traditionally, the driving force behind decision-making has been the experience and instincts of business leaders. And unfortunately, that’s one of the primary reasons behind the unsettling statistic that 90% of small businesses and start-ups fail. Experience and instincts are valuable, of course, but research confirms that businesses that base decisions on data – not instincts or experience – are 19 times more likely to be profitable.

While intuition can provide a hunch or spark that starts you down a particular path, it's through data that you verify, understand, and quantify. According to a survey of more than 1,000 senior executives conducted by PwC, highly data-driven organizations are three times more likely to report significant improvements in decision-making compared to those who rely less on data.

Instead of relying purely on data to make decisions, a data-informed approach uses these same systems and processes to analyze data -- yet does not base business decisions solely on the analysis output. Instead, the data is used as a guide or measuring stick, combined with human-derived information coming from business leaders and decision-makers.

Consider the following four impactful ways SMBs are using data analytics: 

Data analytics helps SMBs improve closing rates. 

Data analytics helps SMBs provide better customer service. 

Data analytics helps SMBs identify and respond to trends. 

Data analytics helps SMBs better understand customer behavior.