Top 5 Challenges Most Businesses Face in Data Analytics (And How to Overcome Them)

Modern businesses generate so much data every single day. And still they struggle to grow as fast, as the amount of data they collect. Data analytics is often hailed as the secret weapon for business growth - but why do so many companies struggle to make sense of their data?

From scattered reports with conflicting numbers, businesses today face common, yet critical challenges that can make even the most data-rich companies feel lost. But what if there was a way to turn this chaos into clarity?

In this article, we’ll explore the 5 core challenges that most businesses face when it comes to data analytics. You’ll also learn about a proven 12-step framework to overcome these problems and set your business up for success.

By the end of this article, you’ll have a solid understanding of the typical issues businesses encounter with data and the tools needed to solve them. Ready? Let’s dive in.

Why are so many businesses struggling with data analytics?

A Gartner study shows that 54% of marketers are dissatisfied with their analytics. I bet this isn’t limited to marketing departments alone; it’s spread across the whole businesses.

💡Check out this video on the top 5 challenges every business faces in data analytics and how to solve them or read a more detailed article below.

With this being said, let’s dive into the 5 most critical problems every business face when dealing with data.

First up, there is no clear analytics roadmap.

One of the biggest challenges businesses face with data analytics is that there's no clear analytics roadmap - no structured plan. They often have no idea what they should be doing when measuring and optimizing their business processes.

Imagine diving into a new video game without knowing the rules, objectives, or how to achieve your goals – sounds tricky, right? That’s exactly how many businesses feel when dealing with data. They’re overwhelmed by a flood of information, from website interactions to detailed sales metrics, but without a solid plan, it's just a sea of numbers and charts.

Without that roadmap, businesses may chase the latest buzzword or trend, only to realize later that it wasn’t what they needed. Data is massive, and it’s easy to get lost in it. But once you have a proper plan, things start to make sense, and you can level up your business game.

Another significant issue is data silos. It’s like each piece of data is in its own little world, making it hard to trust what you’re working with.

Companies collect tons of information - sales figures here, website visits there, and maybe some social media stats thrown in. It’s a lot to manage, and without a data analyst to bring it all together, it becomes nearly impossible to handle all that data effectively.

💡Watch this video to explore the role of a data analyst, their core responsibilities, and the essential skills needed to thrive in the analytics field. It's ideal for beginners ready to launch their career in data!

The third problem is trust issues with the data.

If business users aren’t confident in the accuracy of their data or even where it comes from, it’s like building a house on quicksand. Without trust, making bold decisions becomes impossible.

If your data's all over the place, tucked away in its own little corner, it's tough to see the bigger picture. And without that full story, businesses often end up scratching their heads, wondering why their decisions aren’t leading to growth. Trust in data is essential for decision-making. Without it, businesses second-guess their reports, wondering if they’re reliable.

Even when businesses have a data analyst and some data, scattered reports remain a significant issue.

Imagine this: you’ve got a sales report from your website analytics tool and another from your sales team: Both are reporting on the same thing, but why do the numbers look so different?

Why does Google Analytics show 900 sales, but your CRM or CMS says it's 543?...

And then QuickBooks shows only 487…

Confusing, right? That’s exactly what it feels like when dealing with unblended data- data that isn’t speaking to each other. It’s not enough to just have the data. If it’s scattered, inconsistent, or just plain messy, it’s as good as useless.

The final problem is that, without proper systems, businesses often make random decisions.

You know that feeling when you're just throwing ideas at the wall, hoping something sticks? That’s where many businesses end up when making decisions.

Why is our conversion rate down this month? No one’s sure, so maybe the homepage banner should be changed!

But wait, should we focus on redoing the email campaign instead?

Or maybe it’s time to host a webinar?

And the cycle continues again and again with no clear direction. Meanwhile, the business is getting nowhere fast.

The saddest part? You’re sitting on a goldmine of data that could guide every decision, but instead, it's like navigating through fog without a GPS. Instead of leveraging data insights to optimize processes and operations, many are just - guessing.

So, we've discussed the common challenges businesses face in the world of data analytics.

1. No plan
2. Data silos
3. Not enough trust
4. Scattered reports in different tools all over the place
5. Random business decisions

It can feel like you're lost in a dense forest, right?

But here’s the good news: there's a way out – a clear path that leads straight to business success, backed and driven by data.

I'm about to flip your understanding of building a solid analytics system. Look, you're reading this because you probably feel that pain – maybe not all five challenges, but at least some of them.

I want you to know it can be different. You know there's a missing piece in your data puzzle. Bridging the gap from “we’ve got potential” to “we’re crushing it using data” comes down to three game-changers.

Let’s break it down into 3 pillars of succsess:

The first step is YOU.

Your commitment and drive, your passion are what will push your business forward, no matter your role. Whether you’re a CEO or a data analyst, or a finance manager - you can start heading the right direction.

Next, you need a clear roadmap. Without a plan, it’s like sailing without a compass.

Our 12-step roadmap will take you from confusion to clarity, helping you confidently navigate your data strategy.

Finally, you need the right tools. Whether it’s data storage, visualization tools, or analytics platforms, having the right tech stack is critical for success.

💡Explore the top Digital analytics solutions in this article and discover how to make data-driven decisions that boost your business growth. Perfect for marketers aiming to optimize their strategies with the best tools!

After working with over 165,000 users worldwide and understanding their analytics pain points, we developed a 12-step Roadmap to Data Analytics Mastery.

This roadmap took us 8 years to perfect, and now it’s easy to follow and implement.

Let’s me walk through it:

The roadmap is built around 4 key stages: Plan, Collect, Prepare, and Deliver.

Here’s a quick overview:

The first stage, Plan is all about setting out with clarity. It’s about knowing exactly where you're headed as a business.

• What are your business goals?
• How to get the questions you need to be answers?
• What should you be thinking about?
• Which metrics should you be measuring, and how will you act upon them? Maybe not you specifically, but someone within the business needs to take ownership of these critical decisions to ensure the data is used effectively.

In this stage, we focus on collecting the right pieces of information to calculate the metrics and dimensions we’ve defined, ensuring that our data is complete, trusted, and fits our puzzle perfectly.

It’s about making sure every piece of data aligns with the plan we’ve set so we can move forward with confidence that our information is accurate and actionable.

Then comes the Prepare or Transform stage. It’s not enough to just have data; we need to clean it, merge it, and slice and dice it. We have to connect the dots, make the data communicate with each other, and ensure it works for us.

This stage is all about transforming raw data into something meaningful, so it can provide accurate insights and drive informed decisions.

Finally, Deliver. This is where everything comes together, ensuring that the insights we’ve gathered are not only accessible but also actionable. It’s about turning those report insights into tangible business growth.

Now that you’ve got the basics, I believe you have the foundation and structure for your analytics projects in place - the one that supports all your analytics and decision-making processes.

Data can seem overwhelming, but with the right roadmap and tools, it can become your most powerful asset for growth.

Don’t let scattered reports or data silos hold you back from unlocking the full potential of your business.

By establishing a structured approach, breaking down silos, and ensuring your data is aligned and actionable, you’re not just managing data – you’re driving smarter decisions that lead to sustainable growth.

Remember, data isn’t just about numbers; it’s about the insights that fuel progress.

With the right system, you can shift from reactive decision-making to proactive, data-driven strategies that propel your business forward.