Q&A WITH AN INDUSTRY EXPERT
In this edition of SDR’s Technology report, we interviewed the Co-Founder and Managing Partner of NuView Analytics (and former investment banker), Anthony Wong. At NuView, Anthony and his team leverage the latest technology tools to help middle-market companies create actionable insights from their data. SDR has partnered with NuView to enhance the marketing of its clients to investors in cases where the client has significant untapped data that can demonstrate key attributes, such as market penetration, performance during business cycles, reoccurring revenue patterns, etc.
Q: How are you most often seeing smart middle-market companies leverage their data to increase Enterprise Value in the eyes of potential investors/acquirers?
A: Where we see companies find the most success in creating tangible enterprise value is by leveraging their data to create efficiencies in their operations that result in increased EBITDA (i.e. decreasing costs or increasing productivity). Of course, smart middle-market companies have access to timely insights beyond their monthly financial results that allow them to identify the inefficiencies in their businesses.
We usually see the marketing and sales departments rise to the top of the list due to the large amounts of data those departments collect. Whether it’s identifying marketing channels that contribute to low conversion rates or cultivating actionable leads that are most likely to close for sales, many data-driven insights can create real leverage points for sales and marketing. For technology and software companies where retention is a key driver of enterprise value, we find the most impactful data solutions are customer churn models that utilize historical data from customers’ tenure to predict future churn for cohorts.
Q: For middle-market companies to win with data-driven insights, do they need to be at the forefront of utilizing AI or machine learning?
A: AI and machine learning are the buzzwords of the day in data, but the truth is they are beyond what is necessary to make an immediate impact on businesses. All companies, not just middle-market companies, can see huge wins through data-driven insights by focusing on creating a more data-informed business. Once you can see the data, and it gets insightfully presented to the end-user, middle-market companies can then make decisions and have their teams implement the insights rather than a computer. For example, it’s not necessary to create an AI robot to call all your top sales leads, but it is necessary to know which sales leads are most likely to close so your team can focus its attention on them…
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