In today’s business world, the ability to effectively analyze and interpret data is absolutely essential for success. From streamlining internal processes to designing more accurate customer targeting techniques, analytics is the key that will open the doors to undiscovered opportunities and higher profits.
Vast amounts of data are created by both customers and employees and the devices they use. By taking advantage of that data, you can gain key insights into otherwise hidden factors affecting every aspect of your business. Below are just a few of the reasons that any modern company should be investing in analytics.
Find The Needle In The Haystack
The vast amount of data available to the modern business is a double-edged sword. On one hand, the abundance of data provides companies with information that a business owner 50 years ago couldn’t even imagine. On the other hand, the quantity of data available is so massive that it’s impossible to analyze without the help of advanced analytics software.
It is estimated that 90% of the data that exists today was created in just the last two years. New data is created at an astounding rate, and that rate is only expected to increase in the future. The amount of data we are creating as a whole is doubling every 2 years. It is expected to reach 44 zettabytes — 44 trillion gigabytes — by the year 2020.
Analytics is what makes it possible to sort through these massive amounts of information and find that proverbial needle in the haystack. It is what allows you to turn an indecipherable mountain of chaos into insightful, organized information that will give you everything you need to make better and more informed decisions every step of the way.
Determine The ROI Of Marketing Strategies
Technology makes it possible to break marketing successes and failures down to the finest details. One can easily see what is working, and perhaps more importantly, what is not working.
What was once a game of trial and error based on gut feelings has become a precision targeted process. In years gone by, all a business could do to gauge the success of marketing campaign was determine if sales moved up or down after an advertisement was released. Today, through proper analytics, you can determine the return on investment for everything from an individual advertisement to your combined marketing efforts for the last 5 years.
Fine Tune Sales Strategies
Information derived from analytics can help you see past general assumptions and find the detailed facts that will allow you to laser target sales and marketing strategies. You’ll be able to create campaigns that build on prior successes and increase returns. Analytics will quickly show you things like:
- Who is buying your product
- Where customers are buying your product
- Which marketing led to more purchases
- How your customers found you
- Customer demographics
- Repeat customer statistics
This information allows you to go from simply marketing to young men to targeting men between 21 and 30, living in large cities, who have an interest in technology and earn a higher than average salary. Understanding who your best customers really are will have a significant impact on the bottom line.
Refine Processes And Improve Efficiency
Analyzing internal data can take you beyond just profits and losses to reveal the true effectiveness of your own processes and procedures. By looking at the time it takes to complete a task, or how long it takes to move from one stage to another, it is possible to pinpoint bottlenecks and chronic delays. You’ll also be able to determine if procedures need to be refined, or completely redesigned, to improve productivity and efficiency.
Keep Activity Aligned With Strategy
When people, or even entire departments, are not focusing on activities that align with the company’s overall business strategy, the result can be big losses. By establishing key performance indicators and metrics to measure success, everyone stays on the same page. Activity stays in line with the company’s overall strategy and outcomes are more easily predicted.
Detailed Cost Tracking
At least equally as important as incoming revenue, outgoing costs are a major factor in determining the financial health of any company. Analytics can give you detailed breakdowns of financial efficiency throughout the company. It becomes easy to locate costly processes, excess resources, or the need to add or remove personnel.
Track And Improve Productivity
By monitoring and analyzing network traffic, you can gain insights into work tasks that are taking up more of employees’ time, and which ones are really working, every step of the way. With custom reporting and engagement reports at your fingertips, optimizing productivity, and delivering the best possible end-product becomes that much easier.
Track And React To Trends
By analyzing data in real-time, it becomes possible to spot and react to trends rapidly. In today’s fast-moving reality, the difference between success and failure is often timing.
Getting ahead of your competitors could be as simple as getting there first.
By staying on top of current data you’ll be able to spot rising trends to take advantage of them first. At the same time, you’ll avoid overestimating the profitability of trends that are clearly in decline.
More Information Leads To More Success
The bottom line is that if you are not taking advantage the immense amount of data available to you, you are essentially flying blind. Proper use of analytics is the key to finding failures, duplicating successes and measuring goals. In the end, a business that is not taking advantage of all of this information is not going to be in business for long.