Business analytics is a tool that helps efficiently allocate financial and team resources. It’s based on the collection and analysis of statistical data obtained manually or with the help of online services. These data are measured and described by special numerical indicators – business metrics.
Business Analytics Separates Conjecture From Fact and Saves Company Resources
Business intelligence is the collection, processing and analysis of company data. Its purpose is to provide valuable insights that help businesses make informed decisions, reduce costs and implement more efficient processes.
Of course, it’s possible to make management decisions intuitively, but in conditions of increased risk, multitasking and information overload it is more reliable to rely on figures. Especially now there are tools and technologies that allow you to collect the most detailed statistics.
Here are the benefits that business intelligence gives a company.
Reduces the Time Required to React to the Behavior of the Market or Customer
Time is the most valuable resource in a highly competitive market, especially in times of crisis. This is most true for problems that are important to find and solve quickly:
- Site stops opening in Safari browsers – Security certificate license has expired → trial subscriptions or applications will drop dramatically.
- New app releases cause bugs on Android or iOS → there will be a surge of negative feedback on social networks or app stores.
- The online payment system doesn’t send a verification SMS to the customer → card payments will stop working.
Similar problems can lead to serious consequences for business, so it’s important to detect and fix them as soon as possible.
Adapts to Sector, Industry, and Segment
There are a large number of useful and working analytics tools on the market, so it’s important to consider the industry, the business and the needs of the company itself.
A startup selling solar panels to another business doesn’t need 24/7 social media monitoring as much as a Facebook page about betting Uganda that needs to be in touch with a customer 24/7.
Saves Human Resources
Business intelligence tools can automate some operations, such as collecting data or creating reports. This is especially relevant for growing companies with a large number of users. If you automate routine operations, labor productivity will increase and the need for personnel, on the contrary, will decrease.
Shows the Effectiveness of Processes and Decisions in Real Time
If the company changed tariffs on its website: it made three payment plans instead of two, analytics will help you understand whether that decision was correct or not. It will show if the revenue increased or vice versa: the interface became more complicated, the time to choose increased, and the customers signed up less.
Metrics as Business Intelligence Tools
To measure and describe a company’s performance at different stages, analysts use special numerical indicators – business metrics. The right metrics help make effective management decisions.
It’s impossible to grow all metrics at once: neither internal nor external resources are enough for that. So, it’s important to focus on the short term, determine the period and make a list of hypotheses: what actions can affect a particular metric. After that, depending on the goal and the hypothesis, marketing tactics can be selected.
Let’s say we have a hypothesis: customers don’t buy a product because they don’t know the brand well. To verify this, we need to measure awareness with a sociological survey.
If the answers of the target audience confirm the hypothesis, then you need to work on recognition: write articles in the media, seek partnerships with more well-known brands, and take part in industry awards. If the hypothesis isn’t confirmed, the next hypothesis in the list is checked.
It’s necessary to correlate the indicators of different metrics and analyze the data comprehensively. You can’t make decisions based on numbers alone.
Sales may increase due to the introduction of a bonus program, or they may increase due to seasonality or the appearance of a new product item. To find out, you need to compare data from different sources.
It’s also important to communicate with other departments and discuss the results of analytics together. Sometimes the source of a problem is known to one employee, but others don’t even know about it.
It’s important to have a response team. When something happens: a new law comes out, a new technology emerges, or there is a problem with raw materials, a team of key employees takes immediate action and creates a plan of action.
Knowing the Key Metrics and Seeing the Target Is the Main Task in Working With Metrics
Collecting and analyzing data is an integral part of any business. Analytics helps make strategic decisions, choose tactics in difficult situations and allocate resources.
Business metrics are used to describe key indicators. Growth metrics, activity metrics and monetization metrics are considered critical for a company – they show whether the business is growing or not, whether the product is paying off.
