How To Use Data Analytics in Your Business

Your business generates a huge amount of data every day. As the owner, you can access detailed information about everything from web traffic to inventory. Analytics programs gather and analyze data, making it easier to improve operations, boost customer retention, and grow efficiently. Today, Entrepreneur Funding Experts will cover the basics on how you can use analytics to boost your business.

Marketing and Advertising

Most marketing and advertising platforms come with built-in analytics, so it’s a breeze to track each strategy, post, and campaign. Since data is available in real-time, you can adjust your strategy on the fly to boost ROI.

  • Website. Integrate Google Analytics and Google Search Console to monitor everything from traffic and conversions to visitor demographics and behavior.
  • Online advertising. Track how many people click on your ads, find out where they go next, and discover which ads are the most successful.
  • Social media. Facebook, Instagram, Twitter, YouTube, and TikTok all have native analytics to help you identify the types of content that attract and engage customers. On Instagram, you can even figure out which photo sizes resonate best with your audience. If you need to adjust the image to fit within the platform’s options, use an online resizing tool — most have a setting for Instagram’s preferred aspect ratio, so you can change the size with a click and download the file in seconds.
  • Email marketing. Boost customer retention by monitoring link clicks, conversions, and unsubscribes.

A marketing plan can help you use data analytics to your advantage. Your plan should outline strategies and sales goals based on demographic data for your target customers. Then, you can establish a budget and define key performance indicators to help measure success.

Cash Flow Management

Make sure your business can meet its financial obligations with the help of data analytics.

  • Track invoices and receivables. Use your accounting software’s reports to check that invoices go out promptly and that customers are paying on time.
  • Control inventory. Inventory analytics monitor metrics, including “sales to inventory ratio” and “days of inventory.” They help you order efficiently and fill customer demands. This improves cash flow and reduces overstock.
  • Manage spending. Some software programs can give you spending data and financial insights for 2 years — this is a great way to evaluate variable and fixed expenses. With a clear picture of how you’re using capital, it’s easier to find ways to cut back and free up cash flow. When times are tough, stay in control with programs that offer immediate notifications for each transaction.

Operations

Data analytics can help you manage the most complex parts of your business. Artificial intelligence can track operations and identify opportunities in:

  • Shipping and deliveries
  • Warehouse management
  • Supply chain management
  • Project management

Data analytics and process mining allow you to do more than simply monitor and troubleshoot, though. They’re absolutely vital when it comes to identifying areas for potential improvement so that you can further streamline business processes. 

Risk Management

Risk management analytics software programs assess your organization and spot potential risks — before they threaten your financial security. Most software solutions allow you to create a custom library of risks and risk indicators. You get the best results when you connect as many internal and external data sources as possible, such as:

  • Sales data
  • Financial reports
  • Regulatory updates
  • Economy and market performance
  • Customer and vendor behavior

You can also give yourself an edge in a constantly evolving field by pursuing a degree in Information Technology – and thanks to the flexibility of online programs, you can keep working while you go to school and learn at your own pace.

Data Analytics Help Your Business Grow

Whether you want to bring in new customers or improve your company’s finances, data analytics can help! By setting measurable performance indicators and carefully tracking progress, you can improve almost any part of your business.

Entrepreneur Funding Experts is a full service business finance and consulting firm. Through our marketplace, we offer a full suite of financing programs and small business services nationwide. Call 833-568-4712.