As the owner of a small American business, it is your responsibility to seek the most effective methods to bring success to your company, and there are two main approaches you can take in this regard: industriousness and strategic. Even if you apply tons of perseverance to growing your business, your chances of success will diminish if your competitors are resorting to strategy.
Business analytics are part of a larger strategic practice known as business intelligence, which seeks to leverage information to improve certain processes. Most company owners make business decisions based on some level of analytical observation. Let’s say a food truck vendor notices that ice-cold lemonade sales tend to be brisk during the hottest days; based on this information, he decides to offer more lemonade flavors and lower the price slightly to increase sales volume. This is a simple example of business analytics at play; the following three are more sophisticated.
Analyzing Hard Facts
If you started off as an e-commerce entrepreneur, you are likely familiar with the advantages of online retail versus physical stores; however, how does this explain Amazon purchasing the Whole Foods supermarket chain and testing fully automated convenience stores? The answer can be found in compiled data sets.
Amazon is breaking into the brick-and-mortar world because analytics show that the time is right. According to information compiled by Rutgers University, store shoppers spend up to six times more than their online counterparts, and 78 percent of all shoppers still prefer the brick-and-mortar experience. Amazon is going by these figures, and you might want to consider doing the same if it is within your means to do so.
Staying on the Amazon topic, those recommendations that you see on their product pages when you are shopping for books are part of a business strategy known as predictive analytics.
You may think that only companies the size of Amazon can implement strategies such as predictive analytics, but the truth is that there are third-party WordPress plugins that can be installed to provide similar functionality. Small online shops that sell smartphone accessories are known to use these plugins extensively and you’ve probably seen them. This kind of marketing requires a bit more from businesses. While you may already have a few employees with a business analytics masters, you may need to find someone with some IT prowess to implement online marketing campaigns.
The cameras you see hanging from the ceilings of brick-and-mortar stores are there for more than just security. Evaluating shopper behavior is a common strategy of supermarkets; for example, business owners may notice the frustration of shoppers who have to walk to opposite ends of the store to pick up milk and bread.
With website analytics, you can determine the layout, navigation scheme and content that visitors really like. If you have an e-commerce section, you can see which items are prompting more conversions from browsers to shoppers.
In the end, you should not be afraid to dive into business analytics if you are a small business owner; this may just be the competitive edge you need to achieve success.