The fact that analytics can help a business grow is a matter of general knowledge in 2020, but the real question is how does that happen exactly?
We know that collection, organisation and extraction of refined data is key to business success and future growth, but unless we realise how that is utilised exactly, it would be difficult to use analytical resources to their full effect.
Stay with us as we go through some of the most important basics of utilising business analytics for bringing about sustainable business growth.
Review, Insight and Estimations About the Business
In order to grow a business, one must at first have a clear and prominent idea regarding the condition of the concerned business in its current state. Business analytics provides data which is necessary to make those reviews and estimations about the business accurately. The data ascertained can be divided into five main categories, as mentioned below:
- Where the business stands in terms of meeting pre-planned goals
- Comparing size, profitability, performance, growth and other important parameters against that of the closest competitors
- Identification of roadblocks, bottlenecks and missteps in the current business processes
- Determining avenues for getting the best possible results, in light of the present findings
- Planning sustainable growth strategies for the business, based on actual facts
A Leader Backed Up by Data Analytics Can Take Better Decisions
By definition, all leaders must make decisions on a regular basis, some more important than others. If the most important of those decisions are backed up by proper analytics info, chances of them turning out to be the right ones are going to be higher for obvious reasons.
Unfortunately, unless you have a proper understanding of how to evaluate, assess, predict and project the collected data and solve problems found from your analysis, you will not be able to utilise the invaluable information you have access to. You can learn these skills by furthering your education. For example, the Aston University Online MSc Business Analytics programme is designed to help busy entrepreneurs become adept in not just making data-backed decisions, but also in analysing the data themselves.
If business growth is on your mind, then the importance of Big Data analysis in intelligent decision making cannot be overstated. An experienced business leader who is also an expert business analyst will see the following advantages:
- First-hand, data-based knowledge about inventory management, shrewd pricing, recruitment and assignment
- Forming growth strategies, based on projections and estimations
- Minimising the chances of unsustainable steps towards growth
Identification of Relevant Data and Target Demographics
If you are planning an expansion of any kind, then that plan has to include strategies for at least the factors stated next:
- A new target audience/angle
- Additional products/boosted production capacity
- New competitors
In other words, you will need access to tons of new data that’s pertinent in determining your new/expanded demographics. To both determine the target demographics from all that data, and also to find accurate strategies that will have the best chances of success, business analytics is a key tool to master.
Analytics is an All-Important Tool for Personalised Marketing
Now that we have a new expanded demographic, personalisation aspects will need to be re-evaluated and reanalysed to run successful marketing campaigns. Certain methods to effectively use marketing analytics for personalisation and customisation are as follows:
- Personalise email campaigns with automated emails; when AI-powered analytical tools are used properly, they improve conversion rates significantly
- Use social media marketing tools to find the most potent leads
- Adopt a lead scoring system to categorise and rank your leads
Finally, there’s cost reduction, increased profitability and productivity to consider. Let’s break down how business analytics brings about such benefits, into multiple interrelated points:
- You know exactly how many people you need and where you need them, which helps immensely in cutting unnecessary employment costs
- You know exactly what you need, how much you have and the best you can do with both
- An accurate knowledge about customer demands makes it easy to accurately determine cost estimates
- Foreknowledge via predictive business analytics, reduces the chance of wasted resources and efforts in the future
- Predictive business analysis also makes it easy to determine a path for expansion with the best chances of success
Business analytics today is such an intricate part of strategizing, planning, goal setting and expanding, that it’s almost indistinguishable from each of these elementary aspects. It’s essentially the same as business intelligence and, without that, a company trying to grow is just a ship without direction.