Business analytics is a potent tool in the current marketplace. Organizations across various industries are generating massive data amounts, reinforcing the need for business executives who know how to interpret and analyze this data. Unfortunately, there is a current widespread myth that business analytics is expensive, pushing for the need to stop its implementation.
According to Elena Berezovskaya, the head of the analytics department at Adindex, there is a need to dispel this myth and re-establish the importance of analytics for business. This article details the need for analytics for business and how to implement it.
The Importance of Analytics for Business
Eventually, the primary aim of implementing analytics in your business is to increase returns. The need to increase profits covers all the other reasons why data and data analytics are important aspects of a business. These include:
1. Increasing Client Conversion
Conversion of visitors to clients essentially involves interacting with your target audience and singling out those interested in your product as prospective buyers.
2. Assessing the Marketing Communications’ Role
Data and data analytics helps business executives to optimize business costs by reallocating the budget to specific areas affecting sales.
3. Increasing the Bill
A business will notice a significant increase in its income proportional to the number of buyers interested in its product.
4. Behavior Analysis of Target Audience
What do your customers prefer? External and internal factors often influence clients’ tastes and preferences in a product or service. Such factors ordinarily include economics, technological advancement, and fashion, among others.
Data and data analytics play a vital role in a business’ understanding of such behavioral changes. By being able to track these behavioral changes in real-time, a business has the upper hand and power to retain as well as maintain prospective clients.
5. Retaining Existing Clients
Generally, repeat customers generate roughly 80% of the income, especially in industries where re-sale is possible. Data and data analytics can help a business attract and retain such customers. By retaining repeat clients, your business often realizes plenty of quality sales at minimal costs.
6. Tracking the Current Market and Competitor Trends
Lacking such crucial data hinders the proper assessment of the effectiveness of advertising campaigns in the current year and the previous years. Data analytics can help a business tap into the latest SEO trends and increase user engagement for the business.
7. Reducing Costs of Attracting Sales
By spending less on the attraction of a single sale, your business achieves significant growth within the same budget.
8. Attracting New Clients
As previously mentioned, 80% of business income originates from repeat clients. However, there is also a need to invest in attracting new and expansive clients. Inevitably, your current customers may at some point cease to be repeat customers, probably due to a change in taste and preference. As such, failure to attract new clients will negatively affect your business income.
9. Evaluating Business Processes
A business needs to do more than simply attracting a prospective client to their shop or store. The business should also strive to provide quality service and products. Failure to do so makes any marketing effort worthless and a waste of effort. Data and data analytics are elemental to help track where the challenges lay and the related causes.
How to Implement Analytics for Business
Business analytics implementation is a separate independent project in any business. Before engaging in this project, here are several factors you need to consider beforehand:
1. Budget. Implementing and using business analytics requires compensating experts and paying for a range of services.
2. Implementation Time. The period between data collection and use of this data takes an average of one to six months, depending on the business analytics’ complexities.
3. Labor Resources. Time is a necessary factor to create analytics.
4. Payback. Since the primary goal of business analytics is to multiply profits, its implementation must be seen to pay off.
The team at #ADINDEX came up with the adequacy rule that your business can use when implementing analytics for business. It involves a 4-step process whose end goal is to implement business analytics in the best way possible.