Benefits of using data to drive business growth
by Akandu Ukoha
The days of making executive level decisions based on a sense or whim is far gone. Modern businesses are instituting data analysis processes in order to make sense of their business operations. Data Analytics provides a snapshot of how your business is performing and you can use this to make high level decisions. It has created a means for business owners to assess growth, mitigate impending issues and, most importantly, success and failure of decisions are now measurable. The below are just some benefits of using data analytics to drive business growth.
- Increase Customer Value: Data Analytics allows you to identify who your most loyal customers are and you can use this information to drive business growth. You can target them with special offers to reward their loyalty and you can also use their demographic information to identify other individuals that could be loyal customers.
- Improve Advertising: Businesses can pull data to view the effectiveness of their marketing/advertising campaigns. You can review number of clicks, view rate, demographic information on viewers such as region, age and much more. Based on your campaign goals, you can tweak your marketing plan to achieve your goals based on the results of your analysis.
- Reduce Costs: Data Analytics can help drive down your costs because it allows you to review your business process to figure out ways to improve. Through this review process, you can identify trends that will drive decisions such as reducing inventory during certain seasons. Data Analytics also helps saving you the cost of making the wrong decision by providing you with accurate information to better assess a situation to be well informed before move forward with any plans.
- Improved Service Performance: Businesses can now identify ways to improve their service to their customers using data analytics. They can identify the best ways to perform order fulfillment to their customer, predict customer demands to drive inventory related decisions and much more.