The Benefits of Data-Driven Decision-Making for Businesses
Updated: Aug 11, 2022
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From creating better marketing campaigns to improving overall efficiency, utilizing data analytics can improve all aspects of a business. This is reflected in research conducted by Impact, which shows that 63% of businesses that utilize business analytics develop a lasting competitive advantage over those that don’t.
In this article by Structures Insider, we’ll explore the best ways businesses can integrate data analytics in their day-to-day operations and the benefits it’ll provide.
Improving Marketing Efforts
Digital marketing plays a key role in the success of all modern businesses. However, the digital space is competitive and saturated owing to millions of businesses promoting on the same platforms. Utilizing data analytics can help you stand out from the crowd and channel efforts toward the target customers your business can serve.
Review Past Performance: Before running new ad campaigns, take the time to review the performance of old ones. Gather performance data from Facebook, Instagram, and other third-party applications used to run campaigns. Reviewing this data will provide you insights regarding the type of posts which worked best, messaging which resonated with customers the most, the ideal time to post content, and which platforms have the highest ROI.
Segment Customers: With a deeper dive into the data, you should be able to segment customers into various categories such as – repeat buyers, highest engagement, non-responsive, etc. Rather than sharing generic content with all customers, create specific messaging to engage each segment. Additionally, you can use specific channels as well, for instance, create personalized emails for repeat buyers which include offers, referral codes, and a list of your newest product releases.
If you outsource your content creation projects to an agency or freelancer, pass these insights on to them as well. Additionally, when sharing design ideas through the mail, remember to convert your image to PDF, to preserve its quality.
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Increasing Operational Efficiency
In research conducted by Current Wave regarding employee productivity in the workplace, 47% of respondents considered attending multiple meetings a waste of time. Along with unnecessary meetings, lack of prioritization and poor cross-team collaboration were other factors for low productivity in the workplace, leading to loss of time, resources, and revenue.
A solution to overcoming inefficient business practices is to use Business Process Management (BPM) software. BPM serves as a bridge between all digital tools used by teams across the organization and creates a master workflow. Next, it analyses how this workflow is utilized by employees, highlights blockages, and provides solutions to overcome them. Additionally, rather than subjecting employees to repetitive tasks, they can be automated using BPM.
Efficiency reports generated using BPM can be used towards increasing cross-team collaboration and reducing major operational inefficiencies.
Streamlining Hiring Practices
As reported by the World Economic Forum, around a quarter of workers in the U.S. are considering moving to a new job in the near future. In the current job market, candidates have more power to choose and are open to making a switch for factors such as higher pay and better benefits. Whether your goal is to retain experienced talent or expand your workforce, data-driven decision-making will be key to protecting the best interests of the business.
Create a Benchmark: Using top performers as a reference, list their key skills (hard and soft), qualifications, and experience to create a benchmark for reviewing current employees and hiring new recruits.
Scrutinize Your Sourcing: If you use multiple channels to source applications, ascertain which platform has provided you with the best candidates. Applicant-to-interview and offer-to-acceptance ratios are two metrics that’ll provide a clear idea of which platforms to continue using.
Study Competitors: To prevent employees from jumping ship, upgrade your offerings to match compensation rates and benefits provided by competitors. Non-monetary benefits can include a remote working schedule, an increase in sick leaves, etc.
For businesses that are yet to adopt a data-first approach, the best time to implement this practice is now. Whether it be marketing, hiring, operations, or any other areas, data-driven decision-making will help to increase productivity, save costs and help the business to outperform the competition.