Successful entrepreneurs believe that any business will be out of business unless the company is on the internet in the present era. With the sudden boom in e-commerce during the covid-19 pandemic, digitalization has become the only mode of survival for maximum organizations.
Undoubtedly, data is the most powerful tool that you can use for developing a business. Hence, data analysis is the backbone of every functional organization. If you have started a business, you may be wondering how data analytics can serve you for faster business growth. The following article will help you in understanding the important contribution of data analysis in business development.
Digital marketing is not enough
Young entrepreneurs may think that digital marketing is the best way to advertise your product. But there will be a few questions that you cannot answer without procuring enough data.
- Who is the target audience?
- What is the standard reaction of the target audience to the marketing strategies?
- What is the improvement in sales numbers after implementing the strategies?
- How much growth did you expect?
- Did the expected number match with the practical figure?
- Is the difference significant?
If the answer to the last question is “yes,” you know there is something wrong with the strategies. You will need numbers to figure out the issue. Hence, data is the only constant answer all through.
Implementing data analytics
A well-designed website is not sufficient to draw the attention of potential customers. Data cannot help you much, unless you know how to analyze it and derive conclusions using the data. So if your company is depending on data analytics, it implies that you are taking steady steps in the positive direction.
Here is a list of milestones that you can achieve once you implement data analytics in business management.
- Growth tracking
It is possible to analyze the improvement of your company when you compare the previous turnovers with the recent ones. Many companies recruit growth hackers to monitor the development of the company continuously.
Before getting into further elaboration, you should know what is a growth hacker.
- Professional growth hackers are people who use cost-effective and creative strategies to help businesses acquire new clients and retain existing clients.
- The basis of their work is the data that shows the growth in every aspect of your company since its inception.
- Growth hackers solely focus on the strategies to grow the business. So their work involves a thorough analysis of the data to hypothesize, prioritize and test the unique models to see whether the strategies work.
Just like you would like to see the before-after pictures of clients before hiring a dietitian, you should also track the before and after data to ensure that the growth hackers are doing their job accurately.
- Set realistic goals
Every financial year begins with setting the goals and targets for the sales. But the target that you set should depend on the thorough analysis of the sales records. You have to consider certain parameters that you cannot derive without analyzing the data.
- Evaluation of growth trajectory every year.
- Detect significant growth in particular years and map the reasons for the same. For instance, the implementation of social media marketing caused a sudden surge in the sales rate.
- Analyze the direct and indirect impact of marketing strategies.
- Calculating the growth percentage.
- Considering the factors contributing to further growth this year and predicting the maximum possible growth percentage.
And you have got the most realistic and logical goal to set. The team will acknowledge the target when you explain scientifically. And the basis of the prediction will be data analysis.
- Maximize profit
Revenue generation from a business can increase in 3 ways.
- Increase in the sales rate
- Decrease in the cost of production.
- Both of the above.
Data analytics plays a major role in increasing the profit margin and decreasing business costs. It is critical to analyze whether you are using the available resources as effectively as possible. Companies that adopt marketing strategies based on data analysis can increase revenue and reduce costs simultaneously.
- Data analysis is useful for monitoring e-commerce activities, multi funnel channels, and ad campaigns.
- You can measure the performance and defectivity based on real-time figures. It will be easier to determine what works and what fails.
- Aids in stopping the campaigns that are not bringing the expected results.
- You can figure out the keywords that draw maximum traffic and utilize the resources for better campaigns and keywords.
- Monitoring social media
Social media sites are the best platforms to know and identify your potential client base. The analytics tools will provide in-depth information
on the reviews about your product online.
- Track the brand mentions on the social media pages and hashtags to assess whether the popularity is increasing.
- You can gather information about the devices that the target audience uses along with vital demographic information.
It will not only help you to modify the presence of the company on the Facebook, Twitter, and Instagram pages but also change the website to suit the needs of the potential client base.
- Keep tabs on the competitors
You may be unaware that data analytics can give you a head-start over close competitors. The data analytics expert will use several ways to determine what type of clients are the target customers of your rivals. It will also help you to understand what are the strategies of the rivals to procure the client base.
This will be precious information to small or big companies as you can use it to your advantage. If you want to gain the leading edge, you have to focus on the right time to emerge at the top of the particular field. The data will be the staunch support.
- Efficient decision making
When you are using data to grow your business, you know that the figures and facts provide you with the raw materials for every possible permutation and combination for analytics. When you have the figures to show how the customers interact with the product, you can come up with unique ideas as a part of the trial and error procedure. The changes in the figures will again help to detect the success or failure of the plan.
Making a decision affecting the financial status of the company is difficult. But when it comes to taking calls over capital investment for marketing or assigning capital for recruiting the growth hackers, data analytics comes at aid. The decision will be mostly correct as it relies on data and facts.
Companies are starting to depend more on data analytics, and there is a huge paradigm shift to a data-driven world. It is the best way to keep up with the progress in technology and its implementation in various industries.
Data analysis will help in creating a scientific foundation for the company. You can make any decision or develop new strategies once you know that the data supports the approach. Whether it is about referring to the biggest examples or monitoring the success of a completely new strategy, data analysis can always help the business to grow beyond imagination.