Want to grow your business? There’s one (often underutilized) tool you have right at your fingertips that can help you skyrocket your growth: business data.
With analytics on your side, you’re able to make really strategic, effective decisions that help you grow your business. You can improve customer relationships, improve your sales funnels, and choose marketing strategies that really work for your audience.
Still not totally sold? That’s okay. There are a ton of benefits to monitoring and analyzing your business data…let’s dive in!
5 Reasons To Track Your Business Data
Here are five of the biggest reasons you should focus on business data if you want to start fostering growth.
No matter what stage of business you’re in, your niche, or your business goals, data is going to seriously help you get to where you want to be. Here’s how!
Business Data Helps You Understand Your Customers
With business data, you’re able to gain helpful insights into who your customers are and what they need.
You can know whether your customers are more or less interested in specific things you’re offering, what marketing efforts appeal most to them, and whether your target customer avatar is accurate for your most valuable customers.
After all, understanding your customers is absolutely critical to growing your business. With pieces of data like customer lifetime value, clickthrough rate on A/B tested ads, and other metrics, you’ll be able to paint a picture of what your customers enjoy, expect, and engage with most.
You’ll Make Better Decisions
Business data also helps you make more strategic, information-driven decisions. No matter how big or small your business is right now, you have valuable data metrics at your fingertips just waiting to help guide you in the right direction.
Following your gut is always a good idea. But it feels much better to follow your instincts when you have the data to back up that decision!
Business data will help you make decisions involving:
- Generating leads for your business
- Prompting customers to make a second or repeat purchase
- Tracking social media engagement
- Improving customer relationships
- Reaching new audiences
- Marketing your business
- Seeing what’s working and what’s not
Business Data Helps You Create More Seamless Processes
Every business needs clear, streamlined, and efficient processes. Business data helps you improve any process inside your business.
There’s nothing worse than feeling like you’re wasting time, energy, and money struggling to tread water in growing your business. When you strategize moves inside your business or implement processes, you want things to work.
That’s where metrics really shine. You can understand exactly what pain points are happening in your processes, whether that’s on the backend with your team or customer-facing obstacles, like a high abandoned cart rate.
You’ll also be able to see which of your efforts generate the highest ROI, or return on investment. ROI involves revenue generated (in the context of what that specific campaign or action cost).
If you want to improve your bottom line, focus on the marketing channels that are really driving traffic and revenue to your business, and figure out how to strategically improve your business’s and team’s overall performance, business data is the key.
Business Data Helps You Find Solutions To Problems
It’s never fun to see a slower sales month or see a marketing campaign totally flop when you expected it to work wonders. But wallowing in feelings of defeat doesn’t help you grow.
Instead, when something goes wrong, it’s up to YOU to figure out what happened and analyze your numbers. That way, you can make improvements next time and see better results.
Your business data helps you understand what piece of the puzzle caused things to go awry. What steps in a process are working, and where are people kind of losing the thread when it comes to converting?
Once you know this, you can take the right steps to improve.
You’ll Be Able To Understand and Improve Your Work Performance
Another huge reason to track and analyze your business data is to understand (and strategically improve) your performance. Just as a teacher analyzes their students’ work and assigns grades that represent performance, we need to monitor our data and see what’s working well.
But similarly, a teacher evaluates grades in order to see where they can better support students along the way. Do they need to switch up the way they plan lessons to make them more engaging? Is their homework and testing strategy working?
It’s as much on the leader of a group to improve performance as it is on the members of that group. And inside our businesses, data holds the key to unlocking information about what’s working and how we, as business owners, can better support our teams and make decisions that are aligned with what works.
And that is EXACTLY how you’ll increase revenue and start to grow your business over time.
Business data has so many benefits, no matter your niche or the size of your business. Tracking and monitoring your analytics (and knowing how to understand what those numbers mean) is so important if you want to grow!
Are you having trouble figuring out what business data is most important to track? Grab our 12 Most Important KPIs resource now!
Ready to take advantage of all that KPIs and metrics have to offer? Here are some more resources to get you started: