February 2021
As a new business owner, you must put many different pieces together to be successful online. After getting your business website up and running, what’s the next step? If you have the right statistics and data, you can make more informed decisions surrounding your business practices. Read on to learn the best methods of tracking analytics and improving your business growth.
10 Ways to Use Data to Drive Your Business
The benefits of monitoring your business analytics are numerous. Data analysis is one of the most beneficial components of running a small business. In the past three years alone, the number of small businesses that use analytics has increased from 17% to 59%. Here are a few ways you can leverage your analytics to influence your business decisions:
Higher Profit and Cost Reduction
This trend has been increasing with small businesses, mainly because many businesses are seeing an increase in profit and a reduction in costs. You can increase your profit by using mapping to find a demand for your product or service. This data will introduce you to new markets to target your pricing and product placement. Utilizing data like this can also help reduce your business costs in many areas including marketing, supply chain, and logistics.
Better Risk Management
The reason companies need to analyze data to measure risk is so they can use these current numbers in the decision process. You can see what is working well, what’s improving, and what is not successful. Companies also have the advantage of evaluating the risk of a possible expansion based on the analysis of exact numbers. These numbers can give you an idea if expansion is a feasible risk.
Better Customer Relationship Management
You can use your company’s data to monitor your customers’ patterns. Then, you can customize your products and services as well as your website content to improve their overall experience and satisfaction.
Forecasting
Forecasting business trends is much faster and easier to do when you have current data. Analytics monitoring increases the ability to forecast future demand for your business products or services. For example, the financial services industry used their analytics to develop credit risk models, and this enabled them to forecast the trends in the financial market. With online retail, collecting data from a customer in real-time helps determine what actions need to happen for the user to complete the transaction.
Create Better Marketing
You can take your data that may be difficult to understand and convert it into attractive marketing presentations. You can create a graph that displays a milestone your company has reached or when you have reached one of your set goals. You can display this graphic on your website and even bring a hard copy into a meeting to lure in potential new customers based on this growth you are highlighting.
Pricing Trends
You want your business to be competitive in your chosen market. Monitoring pricing trends on your competition’s similar products and services can give you an advantage. You can use this data to put together a strategy for your pricing. You can then adjust prices accordingly to give you the edge over competitors.
Customer Segmentation
Analytics make it possible to track details about your customers. This includes behaviors and social and economic demographics. You can then divide your customers into specific groups based on this data. Then, you can target these groups with specific products or services your business offers, predicting which ones many benefit a specific group more.
Brand Management
After you analyze your website statistics, you can then work on tweaking your brand management strategy. This includes social media management. Gathering data from social media platforms like Linkedin, Facebook, Instagram, and Twitter can help you discover more information about your customers and how to retain them. If you have marketing campaigns on several different social media platforms, you can monitor which strategies are working and which need some adjustment.
Better Internal Business Decisions
The data you gather can also help you make better decisions within your company. The company can increase its profit margin by improving overall efficiency. The business operations can be more time-efficient by streamlining components such as product development, operating costs, and internal business planning.
Overall Better Decision Making
There’s nothing better than having your hard data in front of you when it’s time to decide on your next step. When you monitor current business trends through your analytics, you can use this information to leverage your business decisions and increase momentum.
Let’s Grow Your Business
One of the most important components of website management is leveraging your website analytics for better decision making. This is where you use your website management services and brand management tools to take your business to the next level. Inner Works Pro can help you organize and understand your business analytics.
