Why Analytics Should be
Your Trusted Adviser
When I tell people I provide analytics, I often get a blank look. I imagine it may be the very look you have on your face when I suggest that analytics could be your new best friend. As an “information tamer” allow me to explain.
So what are analytics, anyway?
Basically, it means collecting and analyzing data (information) to find patterns to help you understand what is happening in your business. By tracking and measuring, you take off the blindfold and see what adjustments need to be made to achieve better results.
And just how could analytics be a trusted adviser?
Here are some ways you can befriend analytics:
Have a plan that lays out the steps needed from initial contact to delivery to follow-up. Use a checklist to go through with each customer. Notice which steps work well and which could be improved. Adjust accordingly.
Create and use a database of your customers whether you have 5 or 500. It allows you to sort and filter your customers by key factors. Include:
- Demographic information – things that would help you recognize your customer on the street.
- Record your contact points – how and when you last contacted your customer. Keep track of how many touches to get a sale and quickly see when it is time to reach out again.
- How much and what your customers purchase.
* This helps you to see a sales pattern and trends for inventory building, marketing and deciding which products or services to enhance or eliminate. - Track results of marketing efforts. Watch what happens to sales patterns after an event. By keeping continual track of weekly sales, you can eventually compare to last week, last month and last year. Be careful to not attribute a sales spike to a marketing event when a time of year is the reason (e.g. holiday or business planning season)
- Know your $ numbers. When it comes to finance, make sure to track your sales, expenses and profits. Include everything that went into the business, so you can truly know you are making money. You getting “paid” is an expense that should be there. Know what your sales need to be to make enough to pay you and all other expenses. Especially know what spikes you may need to cover as investments *whether training, marketing, rented space etc.
When determining what to analyze, limit it to factors you can and are willing to make changes around. Don’t measure what you already know. If you sell only to women, that doesn’t need to be something you track.
Analytics is not only about numbers. Study the industry you are in or the industries you serve. Read blogs (just type blogs about… in your search engine), read trade publications on upcoming changes and trend predictions.
Arm yourself with knowledge and let analytics be your friend.
Deborah Gleason is The Information Tamer. She helps businesses collect, understand and use their data. She also volunteers as the social media manager for WIN.
