6 Benefits of Studying Your Business Analytics Frequently
As automation and technology increase the speed at which markets and industries change, it becomes more beneficial to study and review your company’s data analytics more often.
By KEVIN DEVOTO
Here are six benefits of studying your business analytics frequently.
1. More Complete Information
Performing data analytics more frequently provides you with more data to work with, which in turn paints a much more complete picture of how your organization is doing. Whether you’re performing data analytics to ensure your sales are meeting predictions or predictive analytics for future projects and campaigns, having more data to work with means you have more information to back up your goals and decisions. While it may seem like wasted time to have analysts review data weekly or even more often, collecting, sorting and analyzing all that data now can prevent lost time and resources later.
2. More Accurate Insights
Having all the information is only half the equation. Your analytics team also needs to use that data to produce accurate insights and predictions. If the team is only doing this infrequently, the data will be useless, no matter how much or how little you have. More frequent analytics and reviews mean your predictive analytics become more accurate. The reason for this is two-fold. First, you’ll be using the data you have right away, so you can add more data later to complete the picture while being confident your current information is accurate. Second, the shorter time frame means your short-term predictions will be more accurate. Therefore, any long-term predictions based on those short-term ones will also be more accurate.
3. Improved Scalability
Because you’ll have more information to draw from and more accurate insights, you’ll be better equipped to scale your business up or down as needed. Manufacturing sales growth in particular benefits from improved scalability. Manufacturing is growing quickly because the technology fueling it is advancing so quickly. Therefore, manufacturers need to be prepared to scale up on short notice and to have scaling plans in place and ready to implement. By reviewing their business analytics frequently, sometimes as often as weekly, they are able to adjust their plans over time and remain well-prepared and scalable.
4. Improved Efficiency
Analytics can also be utilized internally. You can analyze the outputs of various teams, projects and departments to get an idea of how operations are going within your business. Leverage predictive analytics to determine where there is potential for expansion and where you may need to scale back or to better anticipate future infrastructure needs, such as maintenance or upgrades. By doing so, you can time maintenance, upgrades and expansions more effectively, ensure they don’t disrupt current output and save resources and time.
5. Higher Revenues
You can greatly increase your revenue and profit by studying your data more frequently. Weekly checks can help you see a sharper, more detailed picture of your revenue fluctuations over time. With more data points, you’ll be better equipped to pinpoint weaknesses and potential for growth more quickly and will then be able to create plans and act on this information more quickly. With this advantage, you’ll be able to increase performance faster, which leaders to higher customer satisfaction and revenues.
6. Higher Quality Data
There will always be instances of poor quality data, but if you take the time to review and scrub your data frequently, you can clean it up and make sure you have much higher quality data at your disposal. Frequent review can help your analysts spot discrepancies, duplication and knowledge gaps much more quickly and efficiently. This is just as important as having more complete information. It shows you where you should be collecting more data and what collection processes may need to be reworked.
Be sure to set aside time to review and study your company’s data analytics as frequently as you can. The frequency may vary depending on your industry, but reviewing them weekly may be a good frequency at which to begin.