In the business world statistics are very important. Apart from having a steady stream of customers and revenue, an equally-important measure of success lies with the information a business has access to, and what it does with that information.
One of the reasons why organizations end up running out of money and having to close down is because they do not effectively analyze important data they have access to. In today’s blog post, I will run through the importance of business analytics, as well as the different types of information organizations can benefit from analyzing.
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Why you shouldn’t just sit on data
Regardless of the business you are running, you will have access to all sorts of key metrics about your organization.
Some of the most-common forms of data that can provide you with a wealth of information to help your business grow include:
Sales sources – who buys from you, where they are from, and why they buy from you;
Volume of sales – how much you sell in any given period;
Trends – what your customers like, when they are likely to buy.
I know this sounds like a corny and overused phrase, but knowledge is power!
The problem that some firms have is that they place too much emphasis on acquiring new customers and increasing revenue.
You might think that is a good thing, but it isn’t if organizations are not interested in learning more about their existing customers and what drives them to make their purchases!
There are all sorts of different ways that companies and other organizations of all shapes and sizes can use key business metrics to help them grow. Here are some of the most-common types of freely-accessible business data:
I briefly spoke about sales data earlier in this blog post, but this is one of the biggest information goldmines that all organizations have access to!
Your customers should be like your friends; you should learn more about what they like and dislike, as this will help you to steer your business in the right direction.
Effectively analyzing sales data is especially important for firms that produce their own bespoke products, because it can help them avoid any unnecessary manufacturing costs for products that are unlikely to sell in high volumes.
Companies that are operating in the telecommunications industry, such as mobile network operators, can learn a whole bunch of stuff about their customers.
Mobile Internet Analytics gives MNOs the power to find out what their customers use the most (i.e. voice calls, mobile data, text messaging) so that they can refine their service offerings to make them more attractive to new and existing customers.
With the popularity of the World Wide Web growing on a daily basis, companies and other organizations cannot afford to ignore this lucrative source of revenue. The Internet offers everyone a global marketplace without having to spend huge sums of money on marketing.
It’s easy to learn a lot about your website visitors, as website owners can use powerful analytics tools such as Google Analytics to learn more about the behavior of their website visitors.