To grow a business, you need to make tough decisions. These decisions are set to affect the turnout and revenue of the company, and because no one plans to get into a business to incur a loss, it is essential to take decisions that will positively affect the business.
In today’s world, data has become extremely important and central to the way we live. And while most of us barely care about data, businesses are using it to increase productivity, leads, and ultimately revenue. In fact, with the amount of data out there, making data-driven decisions has become a necessity. Through a study, the MIT Center for Digital Business found out that businesses that make data-driven decisions have a 4% higher productivity and 6% higher profit than regular companies that do not use data-driven decisions. This shows that using data to leverage marketing and sales decisions is essential.
If you are a small or medium business enterprise, you are probably wondering, how do I compete with big organizations? How do I increase revenue? Well, with smart data-driven decisions, you can do a lot in closing the revenue and profitability gap between you and big businesses or between you and other competitors. It gives you an edge in making decisions that can speed up brand growth, and increase business revenue. Because we know how vital making data-driven decisions is to businesses, in this piece, we give tips on how to go about actually using data-driven decisions to increase revenue. Because knowing is one thing, but knowing how to use the knowledge is another.
1. Sales data.
Using data to gauge the sales and how you get your profit is an important way through which you can increase revenue. The data you get from your sales and how you perform can help you make better business decisions that will impact your brand, and subsequently, revenue. The data of sales provides raw data on your sales trends. The questions you seek to ask with your sales data include; how much do we make every day? On which day do we make the best sales? When do we make the least sales? Utilizing this data can then help you make informed marketing decisions that will change bad or low-performing trends and increase revenue.
So, for instance, if you have a restaurant, or you run a string of food shops, and from the data, you realize that Thursdays are your least performing days, you can move ahead to give discounts for every order made on Thursday or for every meal below $5. You could use a POS sales information tracker to use data to make good decisions that can increase revenue.
2. Employment performance report
This is also a great way to use data to drive correct decisions that can impact business growth and revenue. The employee performance report provides a good source of data to make businesses know the employees that impact the business the most, bringing in more profit. This data helps you gauge the employees who require more discipline, a more relaxed hand, or even a raise. If, for instance, you run a clothing shop, and you have about three sales reps, Amanda, Sophia, and Tina. And then you realize that somehow, Amanda sells more units than the other sales reps, you can use that data to give Amanda a raise and help her become even a better and more motivated sales rep that can help increase your revenue. So, the information you’ve gained from your sales reps’ performance can help you increase revenue. You can even compare the employment performance data with the sales data and develop a plan to increase revenue.
3. Target your most loyal customers
As humans, we tend to have a higher affinity towards someone, or a cause, or something that makes us feel special or sought after. If your POS system has a management system that takes in customer details, contact information, and daily orders, you can use that information to make your customers feel special and make them want to use your brand more. So, you could send a mail thanking your loyal customers for their patronage, or you could even send them coupons that give them discounts for the next order. Or if a particular customer doesn’t visit in a while, you could send a mail checking up on the customer and just give a gentle reminder of your brand. Doing this could increase loyalty and even cause them to invite more people or move their business meetings over (if it’s a restaurant).
The basis of all the tips stated above is strategy. Once you get the data you need to make the decisions that can change your business, you then need to filter the data you think will be necessary in giving the deserved business growth. Doing this will provide you with a more direct approach to using the relevant data to target your business areas that need change. There is so much data out there, and not streamlining them could even cause troubles that will end up not solving the sales issues at hand and help to increase revenue. So, the best thing to do after getting the data is to strategize. How do you want to go about increasing revenue? Having the correct strategy will help you make the most intelligent decision and help you fully utilize the data you have at hand. The best decision for your data-driven decisions could even be knowing the best path in utilizing the data you have at hand.
Using data to increase revenue is an essential part of businesses today; utilizing data accurately can help drive growth and increase business profitability. Taking these tips seriously will help a lot in driving business growth. When you decide to use data to drive decisions that can help increase revenue, using these tips can help direct you on the best possible path to take.
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The most successful companies stay clear of emotions when making decisions but strictly follow the analysis of data. In other words, they follow where the data leads them.
How do you test, measure, and optimize various marketing campaigns to satisfy your customers better? You do that by analyzing the different data set and looking at the results they generate.
To use data to make quality business decisions, you must first understand the areas to be improved upon and find the relevant data attached to those areas.
Did you know that companies that leverage data in decision-making reduce business costs and increases profit, thereby gaining a competitive advantage? Start leveraging on data today.
With more data available today than any other time in history, strategy must be based on what the data says and how customers react instead of the conventional form of making business decisions.
Making decisions off the analysis of data enables individuals and companies to measure and repeat success, leading to business growth.
To increase growth by using data-driven strategies, never forget to collect and store the appropriate data for analysis.
To make the best data-driven decision, here are some A/B split tests you can consider;
- Compare different colors and graphics, such as in-site navigation areas and call-to-action assets.
- Test different categories or featured products on the homepage.
- Compare conversion for multi-page checkout versus single-checkout.
When testing different data variants in order to make the best decision, never assume. Don’t approach tests with the mindset that you’re right.
When making data-based decisions, don’t forget to listen to your ultimate data source – your customers. Savvy marketers listen to what their audience says about their products and offers.