5 reasons why your business needs an analytics service

In today's fast-paced world, it's easy to miss trends. Some are worth passing by, while others can be critical. One of these is the data-driven decision-making approach. A tool for implementing this approach is business analytics. It is quite obvious that any company is already guided by some digital indicators, because it reports them to the tax office - revenue, profit, balance sheet. For some businesses, this data and analysis is enough to continue successful business operations. However, others will need a deeper approach.

Business analytics is a multifaceted concept, and includes the analysis of processes, products, employees, stocks, sales, marketing channels and much more, it all depends on the specifics of the enterprise. Here, we will look at the main common reasons why a company needs an analytics service.

1st reason - an objective picture of changes

As much as we would not like, sensations and objective reality expressed in numbers may diverge. Let's give some examples. If a company grew in revenue by 5%, profit by 3%, and inflation was 6%, did the business really grow? Or when the process of concluding a contract in a company, which takes 2 business days and seems reasonable, collides with the same in a counterparty or competitor, where they are managed in 1 day. The analytics of specific processes or indicators from the point “as it was” to “as it is now” allows you to look at them soberly, without reservations that can scrape somewhere in the depths of consciousness when reality does not coincide with your own feelings.

2nd reason - strengthening positions with numbers

This reason follows from the first. When there are clear tools and a culture of measuring results, then the activities of employees in the company can be reduced to such formulas: “I made +X commercial offers last month - this gave us +Y in revenue.” And then any initiatives, changes in KPIs or rewards will be backed up and meet less resistance, because they will be based on objective data.

3rd reason - finding sources of growth

Any owner, general director, commercial director, head of the sales department can assume that he knows and sees everything, because he is now in this position. However, not all sources of growth are obvious. For example, price changes based on elasticity. We are used to the fact that in order for the client to buy, you can give a discount. But what if you apply the reverse logic and find such goods that are purchased even if they rise in price? Or how often does a business dive into optimizing its inventory? But this is one of the most effective ways to improve the financial stability of the company and affect profits. All these new sources of revenue growth are difficult to detect without business intelligence, because these calculations require a systematic approach to data entry, processing and calculation methods.

4th reason - transparent goal setting

When obtaining a holistic picture of enterprise analytics, with the dynamics of its development, changes in indicators and processes, the factors that affect the growth of the company become clear. For example, in a B2C business, 3 variables affect revenue: traffic, conversion, and average check. For B2B companies - the number of partners, the frequency of purchases and the average bill. With the application of business intelligence, goal setting becomes more transparent in terms of which metrics to influence. Not just: "let's make $X million in revenue!", but "we will achieve revenue this year in $X million, by raising the average check by 20%, conversion by 10% and traffic by 15%".

5th reason - scoreboard for the whole team

There are many tools for implementing business intelligence (visualize analytic) : tables in Google, Excel, foreign and domestic Business Intelligence (BI) solutions like Power Bi or Qlik Sense, as well as ready-made services such as BVM. But all of them open up an opportunity for additional synergy within the company, when employees as a team get access to a single “scoreboard” with the company's results and understand that their activities directly affect performance. It is absolutely not necessary that everyone has access, the circle of people can be limited, and the effect will still be.

Here we have given 5 reasons why business analytics is needed for your company. If you are interested in trying it, then the fastest and most affordable way to connect business intelligence and start growing your company is BVM. In addition, you have the opportunity to test the service for 2 weeks for free. Our product is ideal for B2B and B2C businesses that manufacture or sell goods, both online and offline.

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