We communicate with friends, family, our worlds in information, and data. Our bodies are constantly processing information, from the things we touch to the things we hear— we are living processors. With business being a living organism, constantly changing and adapting, how could we expect it to be any different?
Data is the blood that circulates through the entity that is business. Data can inform you of your financial, organizational, consumer, and all-over business health. Knowing what to look for, your benchmarks, or even which analytics are important is key to success. For example, let’s take BlueIQ; this is a business that has built its foundation on the significance of data. BlueIQ, a dashboard platform that gathers and analyses data for dentists and chiropractors, has transformed the analytics game for health professionals by isolating the most critical business metrics overall management systems and analyzing them in one place.
Why Do I Need Business Analytics?
Business analytics is the process of collecting, sorting, processing, studying, and comparing your business data to make informed decisions. This can tell you a number of things from where you can cut costs, what your most profitable action items are, customer retention behaviors, and so much more. With this information, you can strategically position your business for successful habits. At Legacy Wealth, our decisions are data-driven and backed by analysis, both for our clients and our business model.
But why do you really need business analytics?
- Data helps you make better, more informed decisions.
You make most of your decisions based on what makes sense to you. Sometimes that’s a gut feeling or something you read, but nothing beats hard-hitting data to back up your business decisions. Using data, you can make decisions on things like finding new leads for your business, improving marketing spend, improving customer retention, or even predicting trends.
- Data helps to solve problems that arise.
What happens when your customer retention drops off the map or your ad spend increases? These questions that come up when there is a sudden change in your data can be alerting you to a much larger issue. You might have a new competitor stepping in on your market share, or you might need to improve your customer experience.
- Data can help you streamline your processes.
We hear it all the time; time is money. It sounds cliche, but it is true. Data can tell you where you need to improve; maybe there are business activities that are not profit producing or are depleting time and money resources. By tracking and analyzing your resource data, you can find out which processes should be streamlined.
These are just a few examples of how data can impact your business, but there are so many more ways data can change your business’s strategic direction.
What Data is Important For Your Business?
So what kind of data should you be looking at? All of them. There is no one size fits all solution for what data is essential, because truthfully, they all are. However, depending on your goals, you can streamline which data metrics you should be ignoring and make fiscal and business decisions based on.
One option is to look at your historical data and compare your new data to these standards. This is great to look at for personal business improvement; however, this can be impossible if you are a small or new business. When there are so many metrics to pay attention to, it is difficult to analyze this alone. This is why there are great options, like BlueIQ, that create platforms to gather all of your data and metrics from a wide array of databases, analyses, and places it in one place for you. This simplicity saves you time, money, and brainpower in the long run— so that you can focus on the future of your business. Another option is to use BlueIQ’s three steps for analyzing your business data: deciding on your data, collecting/organizing, and aligning with your goals. This three-step process can position you for an effective analysis strategy for your business.
Data-driven growth is not easy, and chances are, if you have a small business, then you are analyzing your data and financials alone. Get some help, streamline your processes, and achieve your business goals by using tools like BlueIQ, to make things easier on yourself.