Cut operational costs
Gain insights into internal business operations and become a more cost efficient business. With this information, you’ll be able to implement automation and cut out the unnecessary. For example, after some analysis, you discover that one vendor you work with is eating up a large percentage, above the industry standard, of your bottom line. You decide to negotiate with them, understanding that if they don’t budge on their fees, you will look for a different partner.
Get better at forecasting business performance
When you analyze your data, you can recognize and evaluate trends and patterns that will allow you to accurately forecast several aspects of your business. With this pertinent information at your disposal, you’ll have a much clearer view of what steps you should take.
Would it be so much easier if you could discover whether or not time of the year affects how many sales you make or how your customers behave when you use a certain type of marketing tactic?
Improve your product and/or service offerings
Your data can give insights into your products and services, such as which price points and discounts garner the most sales and which offerings are best sellers. It can also give you insights into how your customers use these offerings like which features are the most and least popular. This information can inform your decision to make incremental improvements or implement a complete overhaul.
Provide better customer service
Understanding your customers’ wants and needs are critical for providing excellent customer service. With this knowledge, you know what steps you need to take next. For example, if you notice that a disproportionate amount of customers are canceling their subscription after you added a new feature to your software, it’s time to explore that and figure out how to remedy the problem.