Businesses today are more driven by data than ever before. While 38% of businesses say their company is data-driven, it is estimated that over 75% of data generated goes unused, meaning you could be doing your business a disservice by neglecting to look at the whole picture. Now more than ever, you need to be able to analyze and leverage your data to stay competitive. Read on for four ways data can help your business.
Allow you to improve customer retention
Next time someone leaves your customer base, it’s essential to consider why that person decided to leave. Data can help you analyze why customers may leave you, allowing you to improve as a business. You can use data to find out why specific customers are going and use that information to be proactive in finding ways to keep those customers happy. To do this, you’ll want to look at customer retention data. This data can help you see what percentage of your customers are leaving and then allow you to look at why they may be going. As a business, you can then proactively figure out ways to make your product or service more appealing to those customers. By doing so, you can keep those customers and retain their business.
Improve your processes and reduce losses
For start-ups, the first year is often a learning experience. As you figure out your new business model and how to produce the products and services you offer, you may experience some trial and error. This is especially true in the early days when you’re figuring out production methods and how to scale. However, during those trial and error periods, you can use your data to improve your company. You can use your data to see where weaknesses may be in your processes and then allow you to address those inefficiencies. For example, one of your processes may be that all the products must always be packaged the same way. However, this isn’t always correct, given your different products. Your data lets you determine if specific customers prefer to receive a certain way. If so, you can use that data to address the inefficiency; click here to learn more.
Data can eliminate supply chain inefficiencies
One way to improve your business is to look at the efficiency of your supply chain. As a business, you may have inefficiencies in managing your supply chain. For example, one of your inefficiencies may be that your suppliers only deliver within a specific time frame. This might lead you to only being able to produce one product at a time. However, customers might be expecting multiple shipments at the same time. With data, you can find out when your customers want their products and prepare them during their scheduled time frame. You can reduce costs and improve customer experience by managing your supply chain more efficiently.
It can help you to make better decisions
Decision-making is an essential part of running any business. As a business, one of the best ways to improve is to use data to make better decisions. However, it can be difficult for you to make those decisions without the correct data. When you use it to make better decisions, you can improve your business. A great place to look is at the customer. You can create products and services that meet customer expectations by looking at what your customers want. In addition, you can learn the most common customer behavior by looking at customers’ information.
Data has many advantages, and businesses not using it will miss many opportunities. Facts are valuable and can be used to improve any business. The most important thing to remember when improving your business information is knowing your business inside and out.