Data is an invaluable asset to your organization. It demonstrates successes, surfaces opportunities for improvement, and informs mission-critical decisions that impact long-term health and sustainability.
Data becomes useful only when applied strategically. For example, the wrong data can produce misleading insights about your organization’s performance, and data-driven outreach is futile if your communications are misinformed.
Overcoming these obstacles to make the most of your data requires an expert trained in and dedicated to proper data use and analysis. The right data analytics company knows how to handle your organization’s data and derive meaningful insights that elevate your impact.
In this guide, we’ll explore three qualities to look for in a data analytics partner.
What Does a Data Analytics Company Do?
Data analytics companies are strategic partners who turn your organization’s raw data into actionable conclusions.
Starting with data collection, these experts prepare information for analysis by aggregating disparate data points, then enriching your database to ensure your records are accurate and up to date. Then, they apply advanced analytics algorithms to identify patterns, trends, and correlations within your data that can point to relevant insights.
Arcadia’s healthcare analytics guide describes beneficial partnerships between organizations and data companies as those that deliver high-quality insights at high speeds, increasing efficiency and reducing organizational workloads. However, not all data analytics companies are the same, and your organization must know what it needs to look for in one to forge the right partnership.
What to Look for in a Data Analytics Company
Now that you have a general understanding of a data analytics company’s role and the value one can provide to your organization, it’s time to start thinking about what attributes to look for in potential partners — let’s walk through three together.
1. Industry-Specific Experience
Not all data is the same, and different organizations have to follow different data practices. As such, choosing the right data analytics company means working with a partner who understands your organization’s unique regulatory, operational, and reporting landscapes.
For example, nonprofits may look for one that understands the unique challenges of mission-driven organizations—such as impact measurement, donor and program reporting, and ethical data use. Top priorities include experience with nonprofit data systems, the ability to customize dashboards and metrics to reflect program outcomes, and a commitment to building staff capacity through training and collaboration.
As another example, a healthcare organization must handle sensitive patient data carefully to avoid violating Health Insurance Portability and Accountability Act (HIPAA) regulations. Their data partner should be familiar with these policies when analyzing patient data and sharing the insights they’ve gathered.
An experienced analytics company will also know which data is most relevant to your organization’s priorities. Here are a few tips to find industry-aligned partners:
- Review their onboarding processes
- Ask about specific metrics and KPIs
- Check their websites for internal case studies
- Read online reviews
- Ask for references from previous clients
- Explore published resources, like blog posts or whitepapers
Keep in mind that a good partner will tailor their approach to your organization. Depending on your organization’s needs, the data partner might develop a custom application or track unique metrics to deliver useful and efficient results.
2. Platform Familiarity
Technology, including artificial intelligence, is an increasingly important element of data analysis, especially given the unprecedented amount of data produced every day. Analytics platforms allow your organization to aggregate, clean, and assess its data more efficiently, especially if they have built-in tools that automate much of the process.
In turn, the right data partner will have access to and be familiar with relevant analytics technology. Knowing how to integrate that technology with your organization’s existing software — like Salesforce donor database solutions for nonprofits or member management tools for associations — is also critical to ensure none of your organization’s data is left out.
Regardless of the specific platform type, a data analytics company should use technology that is:
- Cutting-edge: It updates frequently to incorporate the latest analytics capabilities and workflows.
- Scalable: It accommodates your organization’s growing data collection and analysis needs.
- User-friendly: It’s easy, even for non-tech-savvy users, to access and understand your data’s insights.
Just as your data partner’s expertise should be industry-aligned, ensure they use technology tailored to your organization’s area of focus. For example, a medical practice should look for an analytics company that leverages top AI tools in healthcare, since generic AI tools may not adhere to HIPAA regulations and could compromise patient confidentiality.
3. Ongoing Support and Long-Term Vision
A successful partnership relies on smooth collaboration and aligned long-term goals. The right data analytics company will share your organization’s priorities and help you use your data to achieve them.
Look for a data partner that provides mission-aligned support in every phase of the analytics process, including:
- Data collection: Make sure your analytics partner prioritizes the data and metrics that are most relevant to your organization’s goals.
- Data management: Consider the analytics company’s security certifications, governance policies, user permissions, and other efforts to properly maintain your organization’s data.
- Analytic insight: Look for a partner who knows how to examine data through your organization’s eyes and surface actionable recommendations for performance improvement, whatever that may look like for your team.
- Reporting: Data analytics is all about turning raw data into informed strategies. Your partner should present data in an understandable way so that your organization’s next steps are clear.
Remember that the data analytics company you work with should be prepared to meet your organization’s needs and preferences. Choose a partner who will advise your organization on what’s best, while respecting your team’s preferred methods and overall goals.
For example, perhaps your team is wary of using AI to uncover fundraising insights. You’re not alone — according to Insightful Philanthropy, 85% cybersecurity professionals believe that recent data breaches are AI-driven, and many people are uncomfortable with AI accessing their personal information. Instead of arguing that AI is useful for efficiently analyzing data, your chosen partner should respect your team’s concerns and leverage different tools.
Selecting a data analytics company is a strategic decision that influences your organization’s ability to improve performance and maximize ongoing impact. Before you evaluate potential partners, audit your existing data sources to identify your top challenges to data-driven decision-making. Then, look for a partner who will work with you to achieve your organization’s long-term goals and grow with you after you reach them.