Data is good. But it's just the beginning.

Capturing data is fundamental. Programmers love data. Analysts love data. We hoard data. The default is "let's capture the data and we'll figure out what to do with it later." Often, there is no later.

The "do something" requires tools or dedicated analysts, which a lot of organizations can't afford.

This is something that I've run into a lot when working with small businesses and vendors who cater to them.

Vendor: "We capture everything a customer bought, when they bought it and we can give that to you."

Customer: "Huh?"

If you leave things at the data stage, you've just left the customer with a lot of work.

Imagine Sugar from The Bear scrolling through cells and cells of customer data. She's got no time for that!

(If you don't get the reference, she's helping her cousin run the business side of a new restaurant in Chicago in FX's The Bear - a great show on FX, streaming on Hulu.)

The next level is knowledge, taking the data and converting It into something the typical customer can understand quickly.

Continuing the restaurant example, knowledge involves taking the data layer and giving Sugar the top line.

This can include:

• Who are best customers (biggest tippers, largest ticket sizes, biggest wine drinkers)?
• What are the most popular menu items?
• What are the busiest times?

Knowledge is a big improvement from data. But it still puts the onus on Sugar to read through the knowledge and figure out what to do with it.

What is most important is to provide the analysis and recommendations. What can the user do with all of this information? Can you do it automatically?

Examples:

• Put a note in the reservation to offer the customer a complimentary drink based on frequency of visiting.
• Throttle high-cost channels when you're otherwise at capacity. Why pay an extra 20-30% of your price, back up the kitchen and provide lower quality service to those in house?
• Send out targeted emails for new seasonal dishes.
• Flash sales. Reservation book looking empty? Send out emails with a promotion for the day.

There are a lot ways to improve businesses with data. The key is to make it easy to turn all of that data into action.