If you’ve ever worked in a corporate environment, you’re probably familiar with the term “data-driven decision-making.” It’s a buzzphrase that is often pushed by business leaders looking for ways to streamline operations and create more efficient processes. However, as a freelancer or small business owner, these terms don’t mean much to you. Data-driven decision-making is when you use data analytics —or information collected through various sources—to decide how your business should operate. This can be applied to everything from inventory management to marketing strategy. It’s also an important part of any business’s growth plan because it helps identify areas where you need improvement or change your course of action if something isn’t working well enough.
The data that’s right in front of you is the most important.
It’s important to understand that data is everywhere. The information is there whether you are a mobile app, an e-commerce store or even a traditional brick-and-mortar store. There may not be one place where all of it can be found in one convenient place, but it’s still there—if not in your head or on paper forms, then maybe scattered across multiple platforms such as email marketing campaigns and other online advertising channels.
This is where you should begin if you are looking for a good starting point for your business analytics journey. Try tracking customer behaviour by creating customer profiles based on past purchases and interactions with the business using whatever tools make sense for your particular industry or type of business (CRM software like Salesforce may work well for retail stores).
Once you have the data, it’s time to analyze it.
You need to decide what data you want and how to use it. Knowing what questions you want to be answered is key in this step. Once you know what questions you want to be answered, it’s time to figure out how best to answer them using the data at hand.
When choosing the right analysis method for your business’ KPIs, there are several factors that should be considered:
- What kind of questions do I have?
- How will the answers help me move my business forward?
- Do I have enough historical information about these metrics/KPIs already? If not, how much historical information do I need for meaningful analysis?
Calculating things like conversion rates can be very important.
Calculating conversion rates is one of the most important things to consider when you’re trying to take your business to the next level with data. You should be able to see how many sales you make per lead, but there are a few types of conversions you should be measuring.
The “conversion funnel” refers to every step it takes for someone who comes into contact with your brand or product through an external source—like an advertisement on Facebook or website traffic from Google Ads—to become your paying customer.
With the right data, you can take your business to the next level in your industry.
Having the right data can help you take your business to the next level in your industry. You’ll be able to see trends, feed on data analytics, predict future outcomes and make better decisions with every aspect of your company.
You need to do three main things when it comes to collecting and analyzing data: get started, run experiments, and commit for the long haul.
Data is the lifeblood of a business. It’s what makes companies successful, and it’s what keeps them alive in their markets. You can’t run a company without knowing where you’re going and how to get there. The most important thing to remember about data is that it doesn’t have to be complicated or expensive—in fact, there are plenty of ways to collect information that are quite simple and cheap! Once you have that data in hand, though, it’s time for analysis; this will give insight into what needs improving so you can make your businesses even more profitable than they already are today
