The Importance of Data Analysis
A business cannot survive without analyzing its data. Assuming said data is readily available and well organised, this internal analysis will go a long way toward making your business function smoothly and more efficiently. Here are some of the possible benefits.
Predict customer trends and behaviours
Data is essential when it comes to understanding the needs and wants of the customer. Business textbooks will tell you that the customer is the main element in every business activity, and an absence of an understanding of this customer can create inefficiency in your business. Predicting the trends and behavior of the customer can help with resource allocation, while building products that are truly in demand. It is imperative to keep up with the trends to sustain your business in the competitive marketplace.
Increase business productivity
Internal data analysis will help determine which departments, divisions, and even people, are consuming the most resources, and at what cost. Measure customer service time, email response time, sales cycle conversion rate, and… well, honestly there are a thousand and one metrics that can help you yield higher productivity for your business.
Break a macro picture into a micro one
Never mind the big bad global economy, even your little district or city competitive marketplace can be overly complex. Calm down. Data will help you identify what’s important and what’s not, and break down difficult, often larger than life problems into small micro tasks that can be more easily tackled.
