Business growth is the number one priority for most organisations, and today analytics and data play a huge role in growth strategies. When businesses use data and analytics in their day-to-day, they are much more likely to succeed. They are a remarkable 23 times as likely to acquire customers and six times as likely to retain them. And they are 19 times more likely to be profitable as a result.
So how do you implement the practice? In this article, we look at 5 key ways analytics can help you to grow your business.
#1: Gathering critical business intelligence
If your business has any chance of survival, you obviously have to have a clear idea of its condition. Business analytics provides the data you need to make reviews and estimations about the state of your organisation accurately and effectively.
Business intelligence data generally falls into five categories, which are:
- Where the business is in terms of reaching its pre-planned goals (Relevant business metrics include: revenue, number of customers and conversion rate)
- The ability to compare critical business metrics with your closest competitors (Relevant business metrics include: profitability, size and performance)
- Determining digital performance opportunities so you can see avenues of growth for your business
- The detection of roadblocks and bottlenecks that currently hold the business back
- The planning of a sustainable, data-driven business strategies
#2 Better customer targeting
Analytics also open up the ability to better target customers with your marketing and sales processes. Better customer targeting is critical in order to save time, money and resources wasted on chasing the wrong leads.
Here are some proven methods to start using analytics to better target your ideal customer:
- Compile the data on your existing customers and use it to build a detailed buyer persona to aid your sales and marketing efforts
- Research where your customers are spending their time online (think about what social sites and publications they most visit) then use this information to see where you need to focus your efforts
- Use customer data, such as their location, interests, age and demographic, to create better ads, content marketing and sales collateral that speaks to them
#3: Leaders making better, data-backed decisions
The decisions of leaders are always going to be among the most critical factors in determining the success and growth of a company. This means organisations also run the risk of wrong decisions having a drastic impact on business growth.
But, with analytics being used to back up these choices, leadership decisions are more accurate more often. For example, a data-driven CMO may use analytics to identify a marketing campaign that isn’t effectively converting customers, so decides to stop running the campaign. This saves the business valuable money and resources that could be spent on a more effective campaign. Instead of leaders having to make decisions based on gut feeling, with analytics they can make the best decision every time.
To ensure your business leaders are implementing data-driven decision making, they need to be skilled up on analytics. Critical analytics skills for business leaders today are:
- The ability to create growth strategies from projections and estimations
- Data-driven knowledge about areas such as inventory management, pricing strategies and recruitment
- The ability to pinpoint unsustainable growth strategies
#4: Personalised marketing
It’s been reported that 70% of customers want brands to personalise their marketing. This means that a critical growth strategy for businesses today is likely to be implementing personalisation in their marketing.
Ways to include personalised marketing in your marketing strategies include:
- Identifying the hottest leads using social media marketing tools
- Personalising email campaigns using automation tools
- Creating a lead scoring system for categorising and ranking leads, so you can focus on those most likely to convert
- Creating targeted landing campaigns
However, marketing analytics can be a huge drain on resources, and 65% of businesses report having too much data to analyse. We look into how to solve this problem in the point below.
#5 Automating business activities
All that data you’ve gathered for analytics is going to be difficult to keep on top of, and you’re not alone. Between 60-73% of data goes unused in analytics today because there is simply so much being generated, and not enough time and resources being set aside to effectively analyse it. Yet, as we’ve demonstrated in the points above, all that data contains incredibly valuable insights that will help you grow your business.
Fortunately, data is also the bedrock of machine learning and artificial intelligence (AI) technologies that can automate a number of critical business tasks today. Automation technology is a gamechanger when it comes to growing businesses, because it means jobs can be done faster and more efficiently, while using much less resources.
Most critically, automation can also solve the problem of having too much data too to analyse. AI is excellently positioned to automatically track metrics and automate KPI analysis, key components of an analytics-driven culture. Learn more about how AI can supercharge data analysis and KPI tracking in our recent blog.