7 Ways That Business Analytics & Data Can Help Your Business Grow

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Every business should be a data business, whether you sell online, in the middle of a busy market, or in a shop down the street. It means that if your business decisions are not driven by the data you’re collecting about that business, you should start now.

In this era of ever-changing markets and strong competition, it’s not enough to rely on guesswork and instincts. Right from the onset of starting a business online or offline, writing a business plan, choosing what to sell and deciding what marketing strategies to try, data plays a very important part.

In this article, we’ll explore 7 ways that business analytics and data can help your business grow. From understanding customer behavior to improving product development, from optimising operations to enhancing customer service, the power of data-driven insights is undeniable and we will break down how they impact business growth!

1. Understanding Customer Behavior

Understanding customer behavior is a vital aspect of running a successful business, and data analytics play a key role in achieving this understanding. By analysing customer data, you can gain insights into your customer preferences, purchasing patterns, and behaviors. This information, such as buying habits and product preferences, can enable you to tailor your products, services, and marketing strategies to meet the specific needs and desires of your target audience.

By aligning offerings with customer expectations, you can improve customer experience and satisfaction, drive customer loyalty, and ultimately boost and increase your revenue. Data analytics empowers you as a business owner to decode the intricate puzzle of customer behavior, helping you make strategic decisions that resonate with your audience and set your business apart from the competition.

2. Smarter Decision Making

Well-informed decisions grounded in concrete information can only be made by studying and analysing business data. With the help of analytics, you can identify emerging opportunities, anticipate market trends, and stay one step ahead of your competitors. Looking at historical data and real-time information can help you gain a deep understanding of your market, customers, and how the industry is changing over time. Armed with this knowledge, you can make strategic choices that optimise resources, capitalise on trends, and navigate potential challenges.

3. Optimising operations

Every business is looking for how to reduce business costs in today’s Nigerian economy, but it is hard to know how to fix an ache if you don’t know where it hurts. Data helps you identify areas where your processes can be more streamlined and costs can be reduced. Whether it’s through identifying underutilised resources, optimising inventory management, or identifying workflow gaps, business analytics can help you make more data-driven decisions to improve operational efficiency, reduce costs, and ultimately deliver products and services more effectively to your customers.

Read Also: 10 Ways to Manage Your Finances as a Business Owner

4. Targeted marketing campaigns

Marketing costs time, money and effort. In other not to waste all of these on the wrong marketing campaigns, your marketing has to be driven by business analytics and data. By using these, you can gather customer data and demographic information to identify and focus on high-potential target audiences and market segments. For example, if you understand the kind of language your audience speaks, you can create campaigns based on that. If you understand their earning bracket, you can create pricing for your goods in a way that appeals to them. Data can basically help you tailor your campaigns to speak to pain points and interests, giving you a higher chance of capturing attention, driving engagement and boosting your sales.

5. Improved product development

If you fully understand what a customer needs, you can cater to it. Another thing to understand is that a business does much better when it’s solving a problem or catering to the needs of a customer segment. But how do you know what to sell, produce, improve or expand your business into?

The answer lies in data. To constantly improve your product or develop products that meet customer needs, you need to analyse data and customer feedback, because, of course, they’re the ones that will buy the product. By aligning your offerings with customer expectations and addressing painpoints, you can create successful and competitive products that resonate with your target audience.

6. Optimising Inventory

If you’re not using data to optimise your inventory, you run the risk of overstocking the wrong items and tying up your capital, or not stocking enough of a fast-moving item and missing sales opportunities. Data helps you identify buying patterns, seasonal demands and market trends to forecast future demand accurately.

A great example is when a lot of couples start buying matching pyjamas in December. If you sell pyjamas and sleepwear, it’s a great market for that season. But you have to be careful to not overstock on this particular product because when December is over and January comes around, you are stuck with items you won’t be able to sell, as there is no longer demand for them. Data helps you strike the perfect balance between supply and demand, and minimise waste.

Read Also: The 5 Best Inventory Management Software for Small Businesses

7. Enhanced customer service

The way you treat your customers can be a significant reason why they patronise you and not your competition. With the power of data, you can create personalised customer experiences that cater to individual preferences and needs.

How to Use Bumpa Business Analytics Tool

Business Analytics is very important for your business, and the data needed for you to understand your business performance should be collected daily, to ensure accuracy. To do that with more ease, adopting a tech tool that integrates seamlessly with your business’s daily operations and collects the data for you, is the way to go.

Your Bumpa Analytics dashboard provides you with data on:

1. Sales - total sales, offline sales, online sales, gross profit, shipping spend, online store visits, discounts given, expenses, etc.

2. Products - products sold, new products, least performing products by order count, etc.

3. Customers - total customers, new customers, returning customers, average spend per customer, etc.

With this data, you can make more data-driven decisions like what sales channels to focus on more, what products to stock more or less of, how to price your items to get more customers, and so much more.

Bumpa gives you everything you need in one dashboard, so you do not need to go looking for another tool to do more. To get accurate data for your business through your Bumpa app, you should:

1. Upload your products to your Bumpa app. This automatically tracks your inventory for you as you sell on the website, or record an order from your order sales channels.

2. Record your orders. This is important as it creates accurate data for every channel you sell, your profit, shipping spend and more.

3. Record your expenses. This helps you track how much your business is spending and helps you make better decisions on managing operational costs.

Say goodbye to pens and papers, and embrace the tech and data way of running your business. Download the Bumpa app to get started today.

Frequently Asked Questions

1. How data analytics can help businesses grow?

Data analytics helps businesses grow by providing valuable insights into customer behavior, market trends, and operational efficiency. It enables businesses to make informed decisions, tailor products and services to customer needs, optimise operations, target marketing efforts, and identify areas for improvement.

2. How small businesses can benefit from data analytics?

Small businesses can benefit from data analytics by gaining insights into customer preferences, optimising operations, and making informed decisions. With business analytics, small businesses can understand their target market better, tailor their products and services to customer needs, and optimise their marketing strategies. It also allows them to identify operational inefficiencies, reduce costs, and improve productivity.

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