How Business Analytics Can Help Your Business Cut Costs: 5 Ways
In 2020, each internet user generated around 1.7 megabytes per second, and about 2.45 quintillion bytes per day (1). With such a growing amount of data, businesses need to embrace business analytics capabilities now, more than ever. The use of analytics not only streamlines operations and improves processes but protects businesses against fraud, reduces costs, and boosts productivity.
In fact, 94% of enterprises say data and analytics are important to their business growth and digital transformation (2). Moreover, the economic recovery post-COVID is expected to be heavily digital as people will continue to shop and work online. This explains why 65% of global enterprises plan to increase their analytics spending in 2020 (3).
Many organizations face challenges realizing the value of data analytics, here are some of the benefits for long term success.
Boost Productivity
The first step in cutting down costs is identifying inefficiencies. A data analytics solution enables managers to streamline or automate mundane tasks across the company so that experts can focus on more complex tasks.
It merges all the necessary data into a single interface that can be quickly accessed from a dashboard and shared within the teams. Thus increasing productivity, improving employee retention, and boosting customer loyalty – all at a lower cost.
Reduced Marketing Expenses
Creating meaningful and targeted marketing campaigns is the best way to manage costs while increasing sales. It helps you to understand what appeals to your customers, identify their needs and ideal spending capability, discover trends and sales opportunities, and then design effective marketing campaigns.
An analysis by McKinsey & Company showed that using data to make better marketing decisions can increase marketing productivity by 15-20% (4). Marketing teams can evaluate campaign performance and see where the new or potential customers are in the sales funnel.
Gain & Retain Customers
Converting leads to customers is challenging without the use of data. Analytics allow companies to easily monitor engagement activity to develop targeted campaigns that provide both relevant content and context to build trust in your product.
Retaining customers is also vital for businesses to ensure long term success. With the right data, your sales team can intervene before a customer is completely lost. Data analytics not only retains customers, but it also helps builds loyalty and improves satisfaction.
Data Strategy – Over to you!
Instead of cutting expenses at random, Redsky offers Analytic & Reporting solutions that give your business the right insight to make strategic decisions. Our focus is to help companies leverage big data for competitive gains by identifying specifics business needs. To learn more about how we can help implement the right data strategy to help you your goals, get in touch with our experts today
Endnotes
- https://techjury.net/blog/big-data-statistics/#:~:text=Big%20Time%20Big%20Data%20Statistics,bytes%20of%20data%20each%20day.
- https://www.forbes.com/sites/louiscolumbus/2019/10/21/the-global-state-of-enterprise-analytics-2020/#20f8a41f562d
- https://www.forbes.com/sites/louiscolumbus/2019/10/21/the-global-state-of-enterprise-analytics-2020/#20f8a41f562d
- https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/digitizing-the-consumer-decision-journey#:~:text=Additionally%2C%20McKinsey%20analysis%20shows%20that,marketing%20spend%20of%20%241%20trillion.
