If you run a business then you need to know about data. After all, these essential numbers and facts tell you how your business is improving, where fixes should be made, and how you can best market your products, amongst other benefits. If you aren’t incorporating analytics already, then this is the time to start. Here at the Local Marketing Center, we consult small businesses on how they can succeed and extend their reach, so we have some tips for how you can incorporate analytics into many areas of your company.
Use Data to Manage Your Inventory
Companies that sell and move physical products need to have data analytics as part of their inventory system. It is really the most accurate way that you can verify what you have, what you need, and what you have sold. Analytics is even more important if you have multiple sales channels because analytic systems can handle these complex situations without the potential of error. Your analytics can also tell you which of your products are flying out the door faster so you can restock or think of other ways that you can capitalize or expand that product line.
Plus, when you always have the products that you advertise available for purchase then you will not only make more money but your customer satisfaction will likely increase as well because you will be a company they can depend upon.
Data for Risk Management
As our world continues to evolve so do the threats posed by cybercriminals, so it is important that you are always analyzing data so you can catch potential threats before they happen. Even if you are not an exclusively online business, if you have any digital components as part of your company, then you are at risk.
However, even with the best data analytics, you cannot catch everything, so it is important to also have an IT security recovery plan in place in the case that you are hacked. This plan should detail what should happen immediately after a threat is identified, including which programs need to be recovered first when each deadline should be met, and who on the team will be responsible for each task.
Data for Marketing
One of the most important places to use data analytics is with your marketing and advertising campaigns. By crunching the numbers, you can determine what type of people are buying your products including where they live, what else they like, and more. Once you have built a profile for your primary demographic, you can begin to focus all of your attention on that audience for maximum profitability.
Data analytics can also help you to understand the best ways to market to your audience. For instance, analytics may tell you that direct mailing is not the best strategy because those customers are not responding, and at the same time, the data could tell you that social media marketing is firing on all cylinders. You don’t want to waste too much time on an unsuccessful marketing tactic, so you need analytics to find the right answers.
Analytics for Retention
While you may be able to sell your products, if customers are returning what they buy and not coming back then you have an issue. The answer is to use data analytics to follow the patterns, so you can see who is sticking around, which products customers are not so fond of, and an alternative strategy to reach a wider audience.
You can also use data to determine why you are unable to retain employees. Whether it is the length of the commute, the pay rate, management style, or anything in between, there are many ways that an employee might not stick around. By looking at the data, you can see why people are leaving and fix those areas so you can show your employees that they are valued. They will work twice as hard because of it.
As you can see, data analytics is an essential part of a successful company, so consider the advantages above and incorporate this strategy into your business. If you have other questions about how to market to your employees, then give Local Marketing Center a call at firstname.lastname@example.org.
Written by Courtney Rosenfeld