Businesses have widely embraced the use of analytics in an attempt to streamline their operations and also to develop new revenue streams. However, this is not always easy to grasp as a snap of the fingers as many may think. In fact, implementing analytics which effectively helps with intelligent business decisions is an aspect which requires time and resources. These resources can be both human and/or non-human. Analytics can help your business to grow its revenue and improve productivity in the following ways -
Analyzing data aids in identifying new business opportunities
Regular analysis of data more often than not leads to increased efficiency. It also helps your organization to discover new opportunities which might have been overlooked before. This may include customer segments that are untapped. Consequently, the potential for growth becomes endless and business decisions will be based more on intelligence.
e.g. Knowing what the customer will buy from your brand of networks when they make a purchase of some warm clothes, gear for skiing, like certain destinations on social media, etc. This gives a great insight into the classic mix of product/customer/price/channel mix for any given market. And a plan for your organization to prepare the inventory and/or also with acquisitions.
Data analysis enables better customer targeting
Using data analytics enables your business to gain better customer insights and target them. According to research studies (found online), targeting increases marketing productivity by about 15-20 percent. Through data analytics, professionals can easily identify the buying habits of customers through computer models. Possible opportunities in the future can also be predicted easily. These aspects help in the generation of new revenue streams. Also, the availability of tons of information that your organization can use in predicting customer desires streamlines their experience with your brand. In the end, this leads to increased sales and growth of revenues. Therefore, obtaining the right tools which are capable of providing actionable and reliable intelligence and implementing them appropriately activates the instinct of your customer. It also embeds your brand into their minds leading to more sales.
e.g. Customer re-order rate or purchase rate from any organization and/or brand ultimately leads to more buzz and revenue numbers. It also ensures that customer satisfaction and experience are streamlined. Referral rate and re-order rate directly plays a key role in reducing overall churn of your customers.
Improvement of internal processes (productivity)
With the analysis of data, your organization can get a correct view of their operations regarding what you are doing efficiently and what you are not. When these aspects are identified, your firm can streamline its operations, reduce wastage, and find ways of efficiently conducting operations. In the long run, this will lead to revenue growth and increased profits. Mining and analyzing data will also answer questions such as what will take place in the future? What is the best way of approaching future occurrences? All these will enhance business processes, quality and promote relevance.
e.g. Understanding workforce and processes will lead to better implementation of digital initiatives which over a long run allows you to assess productivity based on facts and its impact on revenue streams. In conclusion, any business in this age and era must use data analytics to remain relevant and increase revenue growth.
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