The reason why startups are interesting is that they require having a set-in business model. They need to have their business plan and future strategies outlined in line with the state of the market. Usually, startups are based on innovative ideas that solve consumers’ or clients’ problems and they answer their needs.
Startups are shifting to data!
A lot of startups come from creating ideas that in some way involve digital products or services, whether it is a web or mobile solution or a physical product. And some are based on data because their business model is built on delivering immaculate consumer experiences based on the information those users provide. For a startup that is based on a software solution, data has become its guiding star. There are vast possibilities data provides and it is how they will diversify themselves from the competition. It will become a distinctive feature and a competitive advantage.
Ideas are great, but the process of execution is more complex. If a startup is basing its business idea on a software solution with a complex architecture, often they’ll find themselves a bit lost. This is where they require expert guidance in establishing the possibilities and limitations of such solutions. What if they don’t realize that through data they could deliver an even better product, a better user experience?
It should be stated that data is important in building that very user experience. Knowing your users (consumers or clients) is the starting point in realizing what they want or need. It brings the answer to their issues or problems, ones that they didn’t even know existed. A consumer doesn’t need a product or service that doesn’t resolve their problems or needs. They need a cohesive and direct solution that will make their life easier and better.
That can be seen in the case of Bellabeat, a company that develops smart jewelry for women. They base their products on an app that delivers insights and metrics that enhance users’ lifestyles and health. The devices track their daily activities and calculate metrics to make recommendations. Using exact user-generated data, they are focused on learning their users’ habits and determining how they can better their daily life.
There is a trend of new products and services that are data-driven. Startups have realized that the potential of data drives a good product or service. Through its utilization, each consumer can get a precise and almost tailor-made solution. And that’s important in terms of marketing, sales, and customer service. This is where a data scientist or a data engineer is going to become your best friend. Without them, data is just data, unfiltered, unformatted, and nonaggregated. Creating a data-driven solution is not simple and startups will need such expertise to guide them in making their business model a reality.
Startups can develop the idea within these approaches, data-driven software solutions that improve business processes versus data-driven solutions that enhance customer experience and value. From the data that a company generates, areas for improvement or areas that have more potential can be recognized. To deliver solutions that enhance customer experience and value, they need data that users generate. Combining these two could prove to be a winning hand because both sides’ needs are being met.
How does data tell your story?
But data is not only there to serve as a background to your solution. It also tells a story. It helps you build your brand and your identity. Having input on your users, their habits, movements, or lifestyle creates a picture of who they really are. You can search through their characteristics to adapt your marketing communication and sales efforts. You can use those pieces of information to have a flexible product or service that adjusts to each customer. By anticipating their movements and tailoring the delivered result, you will create a unique value proposition. And that is priceless. That is what raises the value of your brand.
It’s a whole new world where consumers are always in search of something new. Innovations are the driving force of market changes and consumer habits, and startups are behind the curtain of those changes. Those innovations are the result of startups teaming up with data. User experience is what determines success and you can’t deliver that if you don’t properly utilize data in your software solution, either as a data product meant for consumers or a data product used internally for employees. A happy user makes the ROI bigger, and startups teaming up with data-driven software development teams can cash on that.