Data is a lot like a Peloton bike. It looks good and is great to have, but it only makes a significant impact if you put it to solid use.
Undoubtedly, data collection has become a primary objective for apartment operators over the past several years. But applying data in a manner that genuinely moves the needle remains elusive for many.
Utilized properly and effectively, the business intelligence derived from data can solve several pain points. From advanced submarket analytics to the ability to uncover undetected renter tendencies to intuitive pricing insights, the possibilities are aplenty. The challenge is rooted in converting raw datasets to actionable uses.
Here are a few recommendations to uncover the secret sauce contained within the data:
Business Intelligence is a loaded term that includes several components. Big data, predictive analytics, artificial intelligence: While all fall under the BI umbrella, each has a very different purpose and application. Knowing which tool to use and how to use it effectively is a solid starting point. An organization that attempts to engage with BI before understanding its potential impact—and how to measure it—will be fighting an uphill battle.
Ask the right questions
Questions can be just important as answers. When analyzing a dataset, many seek only general insights and figure the insights will become well apparent just by taking a peek. Those who seek specific insights to particular questions will have better success in the analytics process. For instance, if you want to determine which type of renters most often rent additional storage spaces at your communities, narrow your search to those parameters and let the data work its magic.
Critically analyze your own performance
BI allows organizations to analyze their processes and performance and to think critically of how they define success. Doing so enables the organization to set more insightful and realistic goals and tier their spending efforts in a more informed fashion. As companies begin to effectively utilize BI, they can determine strategic themes with regard to the data and develop a culture of data-driven decision making.
While the widespread use of BI in the apartment world remains in its fledgling stages, the industry is undergoing a pronounced shift toward advanced analytics. Operators looking to take the next step should analyze their current data processes, choose a BI provider that will clean and fill the gaps in their data, set realistic objectives and begin cultivating a culture that thrives on transforming data into actionable uses.