How Data Analytics Can Elevate Your Business

by | Jun 21, 2023 | Marketing, Search Engine Optimization

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Data analytics can be an incredibly potent business-development tool. It helps leaders gain key insight into every single business process, from product development to marketing and everything in between. Armed with relevant insight, business leaders can make informed business decisions, leading to better results, fewer errors, and more efficiency.

The gains can be significant – according to statistics from DataShapa, companies that use data analytics increase operating margins by 60 percent and are 58 percent more likely to beat revenue goals. As a business owner or manager, you, too, could generate similar results for your business with data analytics. Below, Copper Moon Media offers a brief overview of the benefits of data analytics and offers some suggestions on using it to upgrade your business:

 

Data analytics can transform several business areas

Every business process generates data. You can use this data to analyze the process, shore up weaknesses, troubleshoot problems, make refinements, and make it future-proof. We offer a few examples below:

  1. Customer relationships

With data analytics, you can use customer data platforms to gather information on relevant customer-centric processes such as the customer journey, customer care, the sales cycle, and similar. You can figure out how to satisfy customers better, improve your service speed, and generally provide a better overall experience. The end result would be stronger customer relationships. Reve Chat covers other applications.

  1. Employee management

Employee data can be used to manage your employees better. Businesses use data analytics in various ways – to make recruitment decisions, reduce employee turnover, offer relevant employee training and onboarding, make promotion and performance decisions, raise employee productivity, and more.

  1. Inventory management

Managing inventory can be incredibly complicated. Data analytics makes it easier in various ways. For instance, it can predict supply-demand, allowing you to order just enough to keep operations going without you having to lose anything to spoilage. It can help you understand your vendor’s behavior better, including predicting possible delays. It can help you make better storage decisions, too, and reduce inventory carrying costs.

  1. Finances

TechTarget notes that data analytics in finance, aka financial analytics, can help companies solve business problems and, generally, use their money better. For instance, companies can determine the health of current investments, find opportunities to make business processes less costly, and reduce the risk of various operations through risk assessment.

  1. Marketing and branding

Your customers have preferences and expectations. Data analytics can help you gain critical insight into the customers’ psyche, helping you understand exactly what it is they need. You can use this information to prepare relevant, data-driven marketing and branding campaigns. Moreover, you can analyze your existing marketing and branding to make it perform better.

 

How to gather relevant data

To use data, you need to collect it first. Companies typically use a combination of data collection methods to gather data. Some examples are surveys, transactional tracking, forms, social media monitoring, observation, and web analytics. Most business apps have basic data analytics features built-in. Also, you can find data analytics tools on the internet to help you gather data – such as Google Analytics.

How to analyze data

Once you gather data, you need to analyze it to derive insights. You can use data analysis methods like descriptive analysis, regression analysis, factor analysis, and dispersion analysis for this. Again, most business apps have data analysis methods built-in, to some extent. Also, many come with data visualization tools (like graphs) that help you make sense of the information in front of you.

Use warehouse management software (WMS) to gather and analyze data

If your business operates a warehouse, you can use your warehouse management software (WMS) to gather critical data about your various processes – like operations, inventory, logistics, and transportation. Many platforms have several relevant features built in that can assist with this – such as order tracking, e-commerce integration, and stock control.

Conclusion

Data analysis can help improve existing processes, solve problems, and make your business future-ready. While having a dedicated data analytics team can be a worthwhile investment, you can make do with data-savvy employees if you’re on a budget. Technology – like data analytics features and dedicated apps – can help.

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