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Data analysis: why is it so important to my company?

Data analysis: why is it so important to my company?

Every company, no matter what its size, always seeks to create and deliver the best products and services. While this is commendable, in the real world it’s unacceptable not to analyze data on a routine basis. Developing great solutions and focusing just on attracting new clients is not enough.

One has to cast a critical eye in analyzing data and extract as much relevant data as possible to inform your company’s business decisions. Follow along and understand the importance of data analysis to your company!

Client management

Every company wants new clients, doesn’t it? A company grows, is successful, offering significant quality to its new clients, but what about its old clients? Most of the time, it doesn’t!

It’s easier and less costly to maintain good clients than it is to attract new ones. This objective may be achieved through data analysis.

This is why it’s extremely important to take care of your client registration data. The initial registration and the new information that you glean over time from your relationship with your client are essential.

This data should be analyzed as quickly as possible. It needs to be analyzed with the objective of bringing the client closer to your company, because that’s the way to maintain a solid portfolio of clients. Without this information, you’ll begin to lose your good clients.

Strategic Objective

We’ve mentioned casting a critical eye at your client base, but with what objectives? Also, this isn’t the only data that exists in your company. Depending on the company’s size and its market, there may be a good quantity of data available with just a few clicks of a mouse.

That’s why having well-planned objectives is fundamental to good analysis of this information. It’s also important to understand that without data analysis and the creation of well-defined metrics, your objectives may end up being nothing more than a dream. Thus you need first to determine your objectives, and then back them up by creating solid metrics to go about achieving them.

Organizing your data

If data analysis is so important, you should take better care of this information! Who takes care of your company data? Think about this and talk with this person. Or, if it’s an area that handles this, go there and understand how everything works.

Data analysis is possible through good data collection and organization. The more reliable and better organized the data, the more likely you’ll be able to analyze it and produce information that will be helpful to your business.

Keep a close eye on it

Data analysis is not a simple task and shouldn’t be performed only once. It needs to be performed periodically. This data should be followed weekly, monthly or whatever the best frequency is for your type of business. Your objectives should be based on data analysis.

However, these report analyses and the indicators you develop should be routine so that you can follow them regularly. This way you can verify beforehand when there are going to be given situations that will require new plans of action. You’ll only be able to do this, though, if your data is very well collected, organized and analyzed.

Measuring data

Without metrics you can’t manage anything – it’s impossible to manage what you can’t measure. You need to establish the path that your company should follow through goals. Then you need to determine metrics to reach these objectives. This way you can analyze your company’s data and keep a close eye on it regularly.

Through this process you’ll get to understand your company and its behavior better and better. You need to measure everything! Analyzing this data will over time bring more “health” and prosperity to your company’s business.