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Unlocking the Power of Data Analytics as a Small Business.

Man Looking at Data Analytics on a Laptop

In today's competitive business environment, data analytics is not just for large corporations. Small businesses can also leverage data analytics to gain insights, streamline operations, and make informed decisions. Organising and analysing data that is already present in the business in a way that both short-term decisions and long-term strategic goals can be made, removing any ‘gut feel’ that may exist and basing the decisions on factual data.

This blog explores why data analytics is crucial for small businesses and how they can implement it effectively.

What is Data Analytics?

Data analytics is the process of modelling data to enable an understanding of historical sales trends which in turn can help decision making.

The way in which the data is modelled and displayed is key to how effective sales analytics can be, but yet an effective model should provide key metrics, filters and information that can be used as part of an overall sales analysis process.

Types of Data Analytics

  • Descriptive Analytics: Analyses historical data to understand changes over time.

  • Diagnostic Analytics: Examines data to understand causes of past outcomes.

  • Predictive Analytics: Uses data to forecast future outcomes.

  • Prescriptive Analytics: Recommends actions based on data analysis.

Do SMEs have enough data?

Many SMEs don’t think they have enough data to analyse effectively. Which is why they don’t really bother with analysing it. They have heard terms like ‘big data’ and think that it doesn’t apply to them.

But they are wrong.

SME's are sitting on a multitude of data that can give great insights when used correctly.

Let's consider that with every purchase made with a company, there are at least five bits of data that are collected; what was bought, how many, when, where and how much was paid. Multiply that by all of the purchases made every month, every year. That’s thousands of bits of data that can tell you a story.

What are the benefits of Data Analytics?

Competitive Advantage

Data analytics helps small businesses compete with larger firms by identifying market trends and customer preferences. By understanding what drives customer behaviour, small businesses can tailor their offerings to meet market demands more effectively.

Customer Insights

Understanding customer behaviour and preferences allows businesses to tailor their products and services. This personalisation leads to higher customer satisfaction and loyalty, which are crucial for long-term success.

Operational Efficiency

Streamlining operations and reducing costs through data-driven decisions can significantly enhance a business's efficiency. Data analytics can pinpoint areas where resources are being wasted and suggest more efficient practices.

Marketing Effectiveness

Enhancing marketing strategies and ROI by analysing campaign performance helps small businesses allocate their marketing budget more effectively. By understanding which campaigns are most successful, businesses can focus their efforts on what works best.

Financial Performance

Improving financial decision-making and profitability by analysing financial data helps businesses manage their cash flow, investments, and expenses more effectively. This leads to better financial health and sustainability.

Key Data Sources for Small Businesses

With increased digitisation, SMEs have access to a wide range of data sources that can provide information on many areas of a business.

Customer Relationship Management (CRM) Systems

CRM systems help manage customer data and interactions. They provide valuable insights into customer preferences, purchasing habits, and feedback, allowing businesses to enhance customer relationships and retention.

Accounting Software

Accounting software contains lot of solid information about customer purchases and payments as well as key business financial information that can be used to manage costs and find efficiencies.

Google Analytics

Google Analytics provides insights into website traffic and user behaviour. By understanding how visitors interact with a website, businesses can improve their online presence and user experience.

Social Media

Social media analytics tools analyse social media performance and engagement. By tracking metrics like likes, shares, and comments, businesses can gauge the effectiveness of their social media strategies and adjust them accordingly.

Consolidating your data with Business Analytics Software

There are many Business Analytics Software solutions on the market that offer data visualisation and reporting capabilities. These tools help businesses turn complex data into easy-to-understand dashboards and reports, aiding in better decision-making.

But within the SME environment, there are very few people with the ability to really maximise these tools, which is where Sontai comes in.

Sontai's Business Analytics Software provides prebuilt template KPI dashboards that connect to the systems that business use everyday. And with the dashboards being prebuilt, there is no technical knowledge required. This means that SMEs can leverage Sontai to get deep insight into their business without needing to know how to build and maintain complex reporting.


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Implementing Data Analytics in a Small Business

Setting Goals

Determine what you aim to achieve with data analytics, such as improving sales or customer satisfaction. Clear goals provide direction and focus for your data analytics efforts.

Data Collection

Use tools and methods to gather relevant data from various sources. This data can come from customer interactions, sales transactions, website analytics, and more.

Data Analysis Techniques

Apply basic techniques like trend analysis, regression analysis, and clustering. These techniques help identify patterns and relationships within the data.

Interpreting Results

Make sense of the data by identifying patterns and trends. Understanding the story behind the numbers allows you to derive actionable insights.

Making Data-Driven Decisions

Use insights gained from data to inform business strategies and decisions. Data-driven decisions are based on evidence rather than intuition, leading to better outcomes.


Read how Sontai has helped SME drive growth through data.


Challenges and Solutions

Common Challenges

Small businesses often face challenges such as data privacy concerns, lack of expertise, and limited budgets. These obstacles can hinder the effective use of data analytics.

Overcoming Challenges

  • Data Privacy Concerns: Implement robust data protection measures to ensure customer data is secure.

  • Lack of Expertise: Invest in training for your team or hire experts to bridge the knowledge gap.

  • Limited Budget: Use cost-effective tools and prioritize your data analytics efforts based on your most critical business needs.

Sontai as the Solution

Sontai offers comprehensive business analytics software and KPI dashboards tailored for small businesses. Sontai makes data analytics accessible and actionable by providing user-friendly tools that integrate seamlessly with your existing systems. With Sontai, you can overcome common challenges and leverage data to drive your business forward.


Data analytics provides small businesses with invaluable insights, enhances operational efficiency, and drives better decision-making. By leveraging data, small businesses can gain a competitive edge and achieve their goals more effectively.

Small business owners should start integrating data analytics into their business strategies to stay competitive and achieve their goals. Begin by setting clear objectives, collecting relevant data, and using tools like Sontai to turn data into actionable insights.

Embrace the power of data analytics to drive growth and success in your business.


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