Standing at crossroads of decisions and determined to make no mistake an entrepreneur will always look into some business insights, tips, research online and consult experts before the next step- That’s precisely what is data analysis.
Analytics and business research is a part and parcel of every business. Many believe these are only for large businesses to benefit from. Truth is, large businesses would have never got any far had they not started analytics as small businesses.
Actionable insights from time to time can help you decide what content to put up on your website, what resources to hire, which customer to value and reward more than others and what products lying at the back of your store is actually high in demand.
But question is how do you get started especially as startups when most of your focus is to set up your business or get it off the ground? How do you know what data to analysis, and how it will help? Here’s a question:
- What is the one (or two) biggest constraint to your growth? Put on your analyst’s cap and brainstorm on that thing which if resolved can help your business grow faster and easier. It can be your website, social media strategy, location of your retail, financial assistance or customer preference for your product(s)
- After you have identified the constraints , analyze how you can resolve it. Determine one metric that you could track and see how far is your constraint resolved. This metrics defines your constraint in the sense that, its increase or decrease should show if your issues are getting fixed or not. This could be sales, cost incurred per customer, No.of customer per lead generated or event as simple as profit%.
For eg. if your constraint is website and its performance – have a goal set . Measure number of customers per visitor or per session of time spent or bounce rates. These are just examples . Link it up with an analytic tool like – Google Analytics and give it a few weeks to gather some data. Then try to read the basic reports. Understand user behavior, in-page analytics, and conversion rates. Check the user navigation pattern and try to find where most of the traffic drops off or which pages have highest time spent. Your metrics for web performance , will be very easy to track using this tool.
If customer satisfaction poses to be the biggest constraint to your sales and return sales, try to understand the why behind customer behavior. Check out metrics like , retention rate, or no of return per sale, frequency or recency of visits for every visitor that steps into your store or your ecommerce. A Market research describing the level of acceptability of your products or services could be a handy document to refer. These could tell why your target group behave the way they do and clues to what you need to do about it.
Inventory management could be a constraint too. That’s when you often end up delaying a delivery or run out of stock or end up spending most of your budget on piles .It’s time to analyse it. Understand the seasonality of products , whats in demand, when and how much to stock. Derive trends and patterns. If not data from your business, then look into others, A number of services, provide reports and syndicated analysis. Reach out to a low cost report . You could also reach us for one such study.
If a store a perfect location , is the biggest roadblock to a large number of footprints in your store, then too data will help you resolve. Look into demographics , compare it with your target group and check which location in your locality, will be the best fit. Analyse population and commercial renting rate.Draw a draft picture for your self on possible areas and know how to narrow down to one or two that works best.
Analysis of data can really be as varied as the number of constraints and problem you face in business.To say data guarantees success would be overrating, but sure it can increase the chance that you will win the game.. It can be a great support system to your daily decision making and put your business on the path on growth.
a. Be it daily operations, cash flows, website data or ones from social media, we analyze all of them together, on one platform, draw, connections, correlations, causes and offer our clients set of easily actionable insights. Tools are really in abundance and we are not selling another expensive one, all that we are sellingis a promise that our analysts will offer modern and conventional analytics , work with you and help you see hidden opportunities from your business data.Schedule a free consultation