“Data analytics” is a buzzword you may have already heard. It sounds super high-tech, but it’s actually pretty straightforward: It simply refers to the collection and analysis of data volumes that are so large that computing technology is needed. If you’re an entrepreneur, data analytics can help give you valuable insights into your company, customers, and market, allowing you to make smarter business decisions. Discover some of the different ways that businesses can leverage data analytics for greater success below.
Utilize business process management
Business process management (BPM) is a systematic approach to improving the efficiency and effectiveness of businesses. By streamlining and automating key processes, businesses can improve their bottom line while also freeing up time and resources to focus on other areas of their business. In addition, specialized BPM can help businesses to better understand their customer base and identify opportunities for growth. As the world of business becomes increasingly competitive, BPM can give your business the edge it needs to succeed. Whether you’re looking to improve customer service, reduce costs, or simply become more efficient, BPM can help you to achieve your goals.
Enhance employee engagement
Engaged employees benefit your company in many ways. An engaged team will perform better, be more productive, and be more likely to stick around, reducing turnover rates. So-called human resources analytics or people analytics leverages data to better understand and optimize the employee experience, improving engagement and satisfaction. This could involve gathering data about worker productivity, behavior, and contributions. Data can be gathered via forums like employee surveys or time-tracking tools.
Improve your risk management
Risk management is a hot topic for any company. Data analytics can help. Ernst and Young reveals that data can be used to help identify the severity of potential risks, such as cyber threats or lack of cash flow. This can then be used to prioritize risk mitigation and plan responses. Data can also be used to inform risk monitoring and reporting. For example, if you’re worried about cybercrime and want more money for prevention, you can use data to show the severity of the risk to your board, encouraging them to give you the cash you need.
Fine-tune your product research and development
If you run a product-based business, data analytics can help you in that realm too. McKinsey & Company has a report describing how predictive analytics can help you finetune product development. Using data on past and current consumer trends, you can get an idea of what people will be looking for in the future. You can then plan your product development accordingly, getting ahead of the trends to meet consumer demand. This is a great way to potentially beat out the competition.
Better manage your company’s money
Smart money management is important to your company’s long-term financial liquidity. Cutting-edge accounting software can provide real-time insights into your cash flow, so you can see where your money comes from—and where it goes. With the right online accounting software, you can then use this data to generate reports, like profit and loss statements and balance sheets. This allows you to get a comprehensive overview of your company’s financial status. Plus, you can share these reports with relevant stakeholders.
Improve your marketing
Data analytics isn’t just for improving internal operations. You can also use it to boost external processes, like marketing to your target audience. You can gather data on marketing techniques to determine where you’re succeeding and where you could improve. For instance, if you create a social media campaign, you can get data on how many likes, comments, clicks, or shares it has. You can then tailor future marketing campaigns according to your feedback on what does and doesn’t attract consumers’ interest.
Cater to your customers
Finally, data analytics can be implemented to help satisfy the most important person to your business—your customers! You can use data to help personalize the customer experience. For example, if you have a loyalty program, you can record details like what types of products a consumer buys. You can then give them tailor-made deals and ads that center on those products. You can also use data to improve customer service, for example with the use of data-driven chatbots and artificial intelligence.
Data analytics isn’t just some meaningless buzzword. As the above guide shows, business owners can harness the information provided by data to improve everything from employee retention to customer loyalty. Get inspired to use data and business process management in your business with these tips.
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Article Courtesy of Cody McBride