The volume of “big data” and the speed in which we are now receiving it presents huge opportunities for businesses. In the past, big data would have only been available to the larger companies, with few SME’s being in a position to afford the high entry costs. Nowadays, access to big data extends to all SME’s.
The challenge is to take big data and make it relevant to your business - you then create business intelligence. But how do you make it relevant to your business and how will this help you to do better business?
Who are you doing business with?
Data can provide valuable insights into the companies you already do business with and those you may be thinking about starting a new relationship with. It also provides key information about the directors of those businesses. Having information on the credit history and financial dealings of key figures, as well as the businesses themselves, helps provide crucial peace of mind when you are investing time and money into those relationships.
Due diligence and monitoring your supply chain
Safeguarding the service to your customers is critical to maintaining a strong business. Data relating to the credit history of individual businesses is invaluable in the context of supplier relationships, whether they’re just being established or they’ve been in place for many years. Being forewarned of potential issues with one of your suppliers and being ready if they experience financial problems will help to ensure the service level to your customers is not affected.
Identifying target customers
Rather than waste time trying to win the business of companies with poor credit histories and a record of financial mismanagement, your efforts and resources can be focused on winning new relationships with more reputable and creditworthy operators. You will then create a sales and marketing strategy aligned to attracting more of your ideal clients.
Understanding your cashflow options
Cash flow challenges can affect companies in any sector and of any size and it’s important to have contingency plans in place to manage your way through these periods. Real-time access to data affords companies a sense of what their financing options are and how their cash flow problems might best be managed.
Improving your credit scores
Improving your credit score opens up opportunities to save money on financing deals for supporting your growth ambitions - the more positive your company’s credit profile, the more financial flexibility you’ll have.
Credit reports are easily accessible to potential clients that are checking your credit profile. They reveal a lot about your company and how well managed or otherwise it has been.
Improving your credit score might not always feature high on a list of strategic priorities, but there are good reasons why perhaps it ought to.
There are now many more ways of using credit records than has ever been the case. Businesses are waking up to the potential benefits and how they can use Big Data to help them achieve better business results. At Red Flag Alert we are very proud to support those businesses.