Here’s How Data Analytics Can Help Your Business

 

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According to research, small businesses on average generate up to 47 terabytes (47000 GB) of data. This data is generated from all-important business activities such as marketing campaigns, sales calls, customer service, vendor management, and more. Managing this amount of data manually is a near-impossible task and prompts the need for using data analytics tools and strategies. For small business owners looking for the best ways to implement data analytics in their day-to-day operations, this article from Tech Griller has got you covered. 


Streamline Decision-Making 


When it comes to creating business strategies, it’s important to take into consideration all major aspects of the business and make necessary changes. Tools for certain business functions will provide individualized reports that need to be analyzed separately. As a result, your final decisions will always involve an element of guesswork and luck to provide expected outcomes.

To overcome this drawback, you need to create accurate visualizations of business processes. This is known as process mapping. These data-driven visualizations are developed by the process mining methodology:


     Data is collected from event logs from the business tools you use, including ERP and CRM.

     These logs serve as a digital paper trail of all business processes.

     These processes are then analyzed by artificial intelligence (AI) to understand the sequence of events, completion time, patterns, and bottlenecks.


Ideally, this will yield a visualized process map (e.g., in the form of a flowchart), which provides you with a clear idea of areas that need improvement, the costs associated with making changes, and the people to make them happen. Decisions made using process mining are guaranteed to improve productivity, lower business costs, and increase employee satisfaction.


 Improve Your Supply Chain Management 


Whether you sell products or services, there is bound to be a network of professionals you depend on to supply raw materials and equipment, manage inventory, and complete order fulfillment. Delays or inefficiencies in the supply chain can lead to business losses and lower customer satisfaction. By leveraging data analytics, these inefficiencies can be weeded out to ensure a smooth flow of goods and services to customers.

The first step is to start using supply chain management software through which you can automate the process of procurement, vendor payments, product fulfillment, and more. Additionally, inventory management software will provide greater insights into the availability of stock, product turnover rates, and avoiding deadstock.


Along with the advantage of automation, software will help analyze data by:

     Generating on-demand performance reports

     Calculating important metrics such as turnover ratio, perfect order rate, cash-to-cash time cycle, and more

Based on this data, corrective actions can be taken to improve your bottom line, such as replacing inefficient vendors, decreasing the production of underselling goods, and imposing penalties on late-paying clients.


Personalize Your Customer Experience


With the sheer amount of competition in the market, focusing on customization is the need of the hour. According to research, 90% of customers find a customized brand experience appealing. Additionally, personalization can reduce customer acquisition costs by up to 50% and provide a 10% boost in revenue.

Traditional research mediums such as surveys and feedback calls are a good start, but a deeper dive into the customer’s psyche will require the use of technology such as social media management tools and customer relationship management software. Analyzing reports generated by software will provide insights on:


     Customer Demographics: This includes data you’ve collected during registration such as age, location, gender, etc., which can be used to create segmentations.

     Customer Purchase Patterns: What time of the month do customers make the most purchases, what are the price points they interact with, and what is their preferred mode of payment?

     Customer Interests: Do customers respond to specific types of offers more than others? What line of messaging works the best to drive engagement?


By leveraging this data you can build a personalized experience that involves running targeted advertisements, sharing customized discounts/offers, adding more payment methods, and more.

There are various data analysis tools and strategies you can implement starting today which will result in higher productivity, improved efficiency, and accurate decision making. Take advantage of them today.

 

 


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