"If you are not getting better, you are getting worse," is an often quoted sports mantra, but it also applies in the business world. Businesses that aren't growing tend to fail. So how do you ensure your numbers go up instead of down? Implement data analytics tools. You’ll find that they help you to identify and address problem areas to help you grow your business. The Skokie Chamber of Commerce has listed out five ways you can use this tool below:

1. Acquire and Retain Customers

To grow any business you must acquire new customers and keep the customers you have. There are five types of analytics commonly used to help with customer retention. Prescriptive analytics focuses on answering a specific question and is useful for identifying the best solution among several options. Descriptive analytics helps with uncovering patterns within a segment of customers. Predictive analytics is used to forecast what might happen in the future. Diagnostic analytics is used to determine why something happened. Outcome analytics provides insight into customer behavior.

2. Marketing

According to Marketing Evolution, marketing analytics is "the use of data to evaluate the effectiveness and success of marketing activities." A comprehensive marketing plan that addresses your target market, budget, sales goals, strategies and how you will quantify success is a critical part of successful business growth. Data analytics can help you develop your marketing plan. There are a variety of methods and models you can use to analyze marketing data, including media mix models, unified marketing measurement and multi-touch attribution. 

3. Improve Your Website

A high-quality website is important for any growing business. Data analytics can help you determine how customers use your site and which areas you need to improve to attract more visitors and keep them on your site longer. When communicating with your web designer during a website upgrade, you may need to gather multiple images and documents to share. To make this easier, look for a reliable tool to convert PDF to jpg. You can use this converter to turn your PDF files into JPGs without sacrificing image quality. 

4. Risk Management

Risk management is the process of identifying risks that your business faces and finding ways to mitigate those risks. Traditionally, this process involved a significant amount of subjectivity based on individual perception. Reciprocity explains that data analytics allows companies to shift to a model where risk management decisions are based on objective data. Data analytics can be used throughout the entire risk management process from risk identification to risk monitoring and reporting. 

5. Product Development

Data is a critical component of determining how to make existing products better and identifying new products to develop. Companies can use data analytics to determine whether a new product is viable, identify the best products to market, analyze which product features work well and which need improvement and inspire product innovation. By analyzing data from customers, vendors, market trends and other sources, product developers can design and improve products based on real-world trends, rather than on guesses about what customers may or may not like. They can also use analytics to evaluate how well product changes and new products are performing and make adjustments based on their analysis.

Analyze, Implement, and Assess

Data plays an increasingly important role in the success of all businesses. Data analytics is a useful tool for any business owner who wants to capitalize on this valuable asset to grow their business. Use it alongside other important tools to strategically improve your marketing, website, and product development process. Together, all of these efforts will help you to strengthen and grow your company.

Membership in the Skokie Chamber of Commerce offers invaluable benefits to entrepreneurs in our community. Join us today!