Successful entrepreneurs have always relied on some form of data to guide them in managing their business. Whether it's internal data such as labour cost or process efficiency, or external data such as demand for any product, your business needsto focus on acquiring business intelligence.
Still not convinced? Here are some of the main reasons why quantifying your results and analyzing them will benefit your company.
1- Improve productivity
The data you record should not only cover your sales figures. You need to go further by collecting data that determines your effectiveness as a business. Is an employee's performance sufficient? What about your different departments? By quantifying the data compiled, you will make it easier to analyze the current state of your business and allow your team to see where it is lacking. This is the first step to improve the productivity of your business!
Also consider compiling your employees' tasks into a task tracking platform such as Asana. This will help you keep track of your productions and those of your team. For more practical tips on improving your business productivity, check out our previous Outgo article!
2- Understand your market
With the development of algorithms, many databases on market trends can be collected and analyzed by your company. Who is your clientele really? Will your advertising campaign be effective for your target audience? Data collection is the key to understanding your consumers and their needs.
However, it is not always easy to analyze the data collected without the right tools at its disposal. Among these tools, data analysis software such as Grow gives you access to more statistics about your customers' habits. In the long term, it is your knowledge of your market that will improve your sales.
3- Reduce costs
In her book, Business Efficiency for Dummies, author Marina Martin states that the inefficiency of a company's processes can cost 20 -30% of its revenue each year. Imagine what your business could accomplish if it had an additional 20% of funds to grow each year.
By concentrating your advertising efforts on your target audience's preferred delivery channels, you can reach them and inform them of your products while avoiding overspending on mal-targeted advertising that won't reach your consumer base. Or, you can see why these broadcast channels have not reached your customers as you would have liked and try to find a solution. In this way, the capital invested in advertising will be more efficient without increasing costs.
4- Improve and accelerate decision-making
At its core, quantifying your results should serve only one thing; improving and accelerating entrepreneurial decision-making. While the interpretation of data and the flair of an executive is always essential to a successful business, your data must now be the foundation of every decision you make.
In addition to being well founded, your decision based on your encrypted data will save you time by avoiding the need to be deluded between the various options available to your business. Such time savings will also allow you to focus on other tasks in your calendar, making you more efficient.
5- Develop new products/services
With data analysis, your customer needs are easier to identify. In this way, you will be able to ensure more consumer satisfaction with your current offer, while analyzing the possibilities to add new products/services to your business.
Conversely, your company's figures may tell you that it would be better to focus your offer on your best sellers by moving away from what does not find a taker from your target audience. It's up to you to listen to them and make the decisions accordingly!
6- Seizing opportunities
While the economy is changing and corporate financial models are trying to keep pace with trends, making profits, remains the primary goal of many organizations. In this regard, analysis of market data can lead to new thinking about the direction your company will take. Sooner or later, business opportunities will be presented to you and a numerical knowledge of the market will be more than necessary in order to arrive at an informed decision.
That was our main reasons to quantify our results with good business intelligence. Feel free to share our article to confuse the sceptics of data analysis and tell us what your best management tools are!
Sources: https://www.grow.com/blog/data-important-business https://brandlitic.com/importance-of-data-analytics-for-business/
https://www.import.io/post/what-is-data-and-why-is-it-important/Also in Growth
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