As a statistician, my passion has always been with data and analytics. Throughout my career, I’ve been fortunate to be in the forefront in the adoption of analytics, contributing and witnessing first hand its immense benefits.
Below are 5 ways in which analytics can drive business growth.
1. Measuring and maximising advertising ROI
“ If you can’t measure it, you can’t improve it ” — Peter Drucker
The first aspect is to make sure that the different marketing channels are properly attributed. If this is not done yet, better hurry!
Once proper attribution is in place, you can start maximising the value of your marketing dollars. Start running A/B tests or multivariate tests on all the marketing aspects to enlarge your impact. These could range from different styles of marketing emails, the position of Call-To-Actions buttons on landing pages to the optimal timing to send marketing collaterals etc.
Advertising can be very expensive, so stretch every dollar to the fullest.
2. Improve customer satisfaction
Imagine if your business could pre-empt whether a customer is going to complain and what are they going to complain about. That’s one way analytics could help.
By anticipating which customers could be unhappy early, you can reach out to them before they move to your competitor.
In addition, customers satisfaction could be improved by analysing the various issues they have raised and addressing them through newer product features, better service delivery or faster customer support etc.
3. Lower operational costs
Analytics, especially predictive analytics can drive down operational costs. For instance, time series models of customer demand could be used to ensure enough resources are allocated to meet the expected demand, hence minimising wastage and lost opportunity cost.
Predictive models could also forecast when equipment would fail so preventive maintenance could be scheduled. Disruptions due to key equipment failure could have widespread impact — just imagine the number of people who would be affected if the trains from your local rail operator broke down during rush hour unexpectedly.
Smart application of analytics can also reduce costs by providing operations managers with necessary and sufficient information on where process bottlenecks are. This would allow them to adjust their processes accordingly and improve the overall performance.
4. Better product and service offerings
What products do customers usually buy together? How are the customers using your service? Where are the steepest drop-off in the conversion funnel and why?
These are just some questions analytics can help provide insights on.
So what are some pressing questions you have to improve your value proposition to your customers?
5. Keep customers with a high lifetime value
According to the article “The Value of Keeping the Right Customers” in the Harvard Business Review, keeping the right customers is valuable.
Analytics can help identify customers with high lifetime value and they should be treated like VIPs.
Analytics can also tell you what are the characteristics of the right customers, so more customers with similar characteristics can be acquired. This would lead to reduced customer churn and drive up your overall customer lifetime value.
Hope you found the five ways analytics can drive business growth useful. Take a close look at your business, I’m sure you would be amazed at the opportunities where good analytics can bring your business to greater heights.