What can analytical data platforms do for your business?
BY READERS DIGEST
9th Dec 2021 Down to Business
Many companies are working hard to increase their profits from year to year. Some business owners are investing lots of money in marketing campaigns in the hope that they will shoot the moon one day.
Unfortunately, large investments cannot guarantee success in 100% of cases. But how to improve your products; how to increase conversions; how to earn customer loyalty?
Analysis is one of the most important elements of any business. It is important to constantly monitor all the changes related to your business and the overall market situation in order to plan your further actions. The success of any company in the future depends on a correctly performed analysis and a consistent strategy based on the insights.
Why does business need analytics systems?
Scaling should always be linked to the results of the analysis and the strategic plan based on quantitative and qualitative indicators. However, you need to resort to analytics not only when expanding a business. It's important to monitor sales dynamics, ad results, and conversion rates on a regular basis. This is the only way to maintain positions in a highly competitive market. Using analytical data platforms can bring a lot of benefits to your business.
1 - Increase of the employee efficiency
One of the most important advantages of working with analytical data platforms is the ability to influence the performance of company employees. When you have data on how well employees are doing their job and how, you can get an idea of what skills should be developed, systems to be integrated, etc.
2 - Improvement of the customer service quality
The bounce rate directly affects the quality of customer service. If it is higher than usual and increases every month, then you should immediately look for the areas that need to be improved. By working with your staff and reducing the bounce rate, the quality of customer service will improve, and the loyalty of consumers to the brand will increase as well.
3 - Prediction of the expected profits
The data obtained from the business analysis can be applied in forecasting cash flows and projecting profits. This will allow you to make plans for the distribution of the marketing budget and the cost of expanding the business. For example, knowing the sales data for last summer, you can predict the approximate profit, taking into account seasonality and consumer ability.
Thus, you will better allocate the required amount for advertising and purchases. And the sales department should be provided with exact plans for the required profit. You must admit that it is much safer to know even approximate data than to guess how much you can earn in a month or in six months.
Benefits of implementing business analytics systems
Companies operate on huge amounts of data. For example, they calculate costs and revenues, determine net profit, analyze traffic and the number of orders; they track product release, etc. All data for analytics is stored in different formats and different systems.
To process the information, analysts first collect all the data in one table, then sort and leave only the necessary indicators. Only afterward, they compare the indicators with past reports. Such work takes dozens of hours weekly. At the same time, in the process of generating a report, the indicators may lose their relevance. In addition, analysts can make mistakes or collect incomplete data. As a result, the final report may be useless.
It is impossible to manually collect and process all company data, and some of the important information may remain unprocessed. A company can miss customer requests by mistake, fail to check-in about production disruptions in a timely manner, and lose money by ignoring problems.
These are some of the main tasks that solved by means of business analytics systems:
- Collecting information from different sources, structuring and storing it in a single system;
- Analysis of large amounts of information to form and confirm hypotheses or to develop business solutions with analytics in mind;
- Modeling possible solutions to evaluate their impact on the bottom line and predicting future development based on the available data;
- Development of strategic and operational reporting, including notification of deviations of indicators from acceptable standards;
- Knowledge preservation and systematisation with its further subsequent transfer to new employees. Thus, experience is preserved and the quality of work is steadily increased.
The overall goal of an enterprise data platform is to empower businesses to make informed decisions based on the insights from analytics. A company that implements such solutions will have complete, accurate, and organized data. Thus, it will bring more profits.
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