The business case for using analytics
Through data analytics you can make better decisions about your business, save money and grow your customer base. You begin with gathering the necessary data to analyze the problem or opportunity then analyze it to find the insights you need.
Thinking about ecommerce customer spending patterns. You can segment your customers by demographic, geographic location or anything else. Through these segmented chunks of data you can then put a pattern to each targeted demographic. For example, if a customer from outside of your province is abandoning their shopping cart after proceeding to the checkout page, data analytics may show that the shipping charges appear too late in the process and that the visitor was shocked by the shipping cost and left.
If you know what customers are doing on your site, it’s easy to create a custom experience for them. That way, they’ll be more likely to buy from you and recommend you to their friends. And if they’re not happy with certain aspects of your business, data analytics can tell you what to fix so that they will have a better experience next time around.
Another area of use for data analytics is to predict the success of your business. You may begin with a test of your sales data from the past few years only to find that your product needs a redesign because it isn’t catching on as quickly as anticipated. Then you decide to run an analysis on what the current trends are in the market and use this information to make an informed decision about which way your product needs to be redesigned. With this information you can then design products which are accurately targeted to the right demographic based on the current needs of your customers. Other areas that this type of analysis can bring insight to are pricing and where to place them for maximum profitability and visibility. Through anticipating the challenges, you may encounter in the future you can work toward solving them now thereby predicting your sales success.
Test what is working and what isn’t
One of the most significant benefits of data analytics is that it helps you determine whether or not the changes you’re making have the desired effect. It’s often hard to pinpoint specific reasons for declining sales or growth but, with data analytics, you can identify what aspects of your company need improvement and adjust accordingly. For example, if your business is experiencing declining profits and you’ve recently introduced a new product across all stores, but there’s been no increase in sales on any of them, data analytics can help to identify whether the issue is with the product itself or if something else is causing this decline. With this insight you can then decide what direction you should take next.
With data analytics you can make better decisions about your business, save money and grow your customer base. Once you have identified the problem or opportunity you want to analyze then you can gather the necessary data to analyze the problem and analyze it to find the insights you need. Avoiding business data is an easy way to miss important information about your business and potentially hurt your bottom line. If you’re still not sure how to use data analytics for your business, remember that it’s all about taking action.