Data has become an indispensable part of running a business.
Whether you’re a small company or a larger corporation, having more data almost always will offer more benefits. At least if you know how to use it.
But as you start collecting data on multiple marketing platforms, actually using that data becomes much more complicated. You have to find a way to systemize all of the data, store it in a uniform format, and standardize it in a way that makes it easy to access and analyze.
And that’s where data warehousing can be so helpful. With data warehousing solutions, you can ensure that you make the most of the data you collect and use it effectively.
There are many different data warehousing solutions available, which has sparked debates of Snowflake vs. Redshift or whether another provider might be the best option for companies of various sizes and needs.
But no matter what solution you choose, the fact remains that data warehousing is here to stay and will become even more popular when more companies discover how it can help.
Let’s look over some of the most important advantages it can offer below.
1.Consistent Data Formats
As a business, you are probably collecting data from multiple sources. Each online marketing and analytics tool can come with its own set of data, which can become a hassle when you want to look at the data collection and draw insights on a larger scale.
Data warehousing solutions solve this issue by allowing you to apply a consistent format from multiple data sources such as Hubspot, Facebook, Google Analytics, and others.
This way, you don’t have to look at each data set separately. Instead, you can continue structuring it consistently and understanding your audience’s behaviors and other crucial metrics in a broader context that you might not be able to see otherwise.
By using data warehousing, you are also minimizing the chance of conflicting data, as you’ll be able to pool the data together and reduce the challenges that can come with trying to make data-driven decisions.
2.Saves Time
Being able to access data quickly is a top priority for any business. And leading data warehouse solutions can allow users to quickly access current and historical data according to various criteria.
Instead of retrieving and organizing the data from multiple sources, users can perform targeted queries, discover what they need, and generate useful reports that they can use immediately.
Sometimes, the data is only valuable if you can act on it quickly. So, having a process that avoids having to work with the IT team to retrieve data can be a real game-changer that transforms how a company uses data and operates in general.
3.Improved Data Quality
Because business data can come in various formats, that can cause issues when trying to maintain consistent quality. And that’s a problem since your data is only as useful as it is reliable.
With the help of a data warehouse, you can ensure that no matter where the data comes from, it will be standardized and ready to use without risking that it might become inconsistent because of different formats.
To make the most of the data you have, you need it to provide accurate insights through analytics, and data warehouses can make that much easier.
4.Data-Driven Approach
Data-driven decision-making has been one of the biggest trends in the business world. But in order to be truly data-driven, you must have all of the available data at your disposal. At least if you don’t want it to become skewed and possibly provide you with inaccurate insights.
But for a long time, smaller companies were limited in how data-driven they could be, simply because they didn’t have as much data as enterprise companies. Even if they used multiple tools for collecting and analyzing data, they were not integrated and provided only a fragmented view.
Being data-driven relies on collecting data and extracting useful patterns that can be used in the decision-making process. Most companies want to be data-driven, but until recently, only those with large budgets could actually fully implement this approach into their practices.
Luckily, data warehousing makes it much more accessible for SMBs.
Instead of having your data analysts spend the majority of their time cleaning and sorting the data, you can automate a lot of the processes using data warehousing solutions, shortening the time it takes to come up with useful insights and making the process much easier.
5.Increased Profitability
Data is the most valuable asset a company can have. The amount of data businesses can collect today is incredible, and companies that manage to use that data can gain a massive advantage over the competition, driving growth that would otherwise be impossible.
If you implement a data warehousing solution into your decision-making process and use it to solve problems, there’s no limit to the type of growth in profits and market share you can achieve.
The best part about having more data is not even about the short-term. Sure, you can start using insights to make better decisions immediately. But the real advantage of having data compiled from multiple sources and used universally is the ability to build on multiple decisions, which can have a compounding effect on your results, multiplying the sometimes seemingly small improvements and completely changing how your company operates.
When you look at it this way, a modern data warehouse is less of an expense you have to deal with but more of an investment that will reap huge benefits the longer you take advantage of what it has to offer.
Final Thoughts
Data warehousing is still only making its way into small and medium businesses. But with the number of marketing and analytics solutions that companies use every day, data warehouses will only become more valuable and popular in the future.
Those that adopt the technology now can ensure they’re using all of the data they accumulate and can start making more informed and effective decisions right now.
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