Guest Perspective: Boost small business profits with data analytics

Companies of all sizes often spend big on ways to boost their sales. But often, the information they need to turbocharge revenue is already baked into their own books and records. The challenge is getting to the data and making sense of it. An experienced Managed Services Provider (MSP) can help you with that by utilizing Data Analytics. From small car washes to local hardware stores, traditional businesses are finding out how data can help them earn more money.

Data Analytics tools — which can spot trends humans might miss — offer valuable insights about your operations, customers, and market trends.. They crunch numbers in seconds, saving time and money. For example, a store owner can see which products sell best at different times of year, which helps with stocking and pricing.

The key is digital records. Paper files are out, and cloud storage is in. When you move your records to a digital model, you can use data to make smart choices. The shift will help you work better and faster. Concerns about the cost of going tech may initially intimidate you, but no one says you have to change all of your systems at once. Start small, trying one tool at a time. Maybe it’s using some basic spreadsheet to track your sales. Do the more advanced analytics as you get comfortable.

You can take review records to see trends, like the volume of products you sold last month, and  break the numbers down to determine the  items that are most popular. Then construct a simple Microsoft Excel spreadsheet to track these figures. Update it weekly or monthly. This helps you spot trends over time.

Next, try setting a small goal based on your data. Maybe you want to boost sales of your least popular item by 10%. Try different approaches and keep an eye on the numbers as you work towards this target.

Working with your MSP to properly train your employees will get you off to a great start.  Providing new-skill classes for staff will build up their confidence and serve as an avenue for bonding among team members. When you see the results of analyzing your data, you’ll be happier, too.

Begin your digital journey with non-technical-friendly software. Most of the tools available today have very simplistic interfaces, since designers create them for non-tech heads. They remember that even the most high-tech CEO was once a novice.

Once you are comfortable with basic Data Analytics, you may wish to dive deeper:

• QuickBooks: Tracks financial data and creates reports
• Google Analytics: Free tool for website traffic insights
• Salesforce: Customer relationship management with built-in analytics

Pick a tool that fits your comfort level. Start simple and upgrade as you grow more confident with data.

How it works

Data Analytics helps businesses make smart choices using numbers and information. It finds patterns and meaning in data, using math, statistics, and computer tools to sort through lots of information. Your business collects data from many places, like sales records, customer details, and website traffic, without even thinking about it. Analytics turns this jumble of facts into clear takeaways.

There are different types of Data Analytics. Descriptive Analytics looks at what happened in the past, while Predictive Analytics tries to guess what might happen next. Prescriptive Analytics suggests actions to take.

With analytics, your company can:

• Find new ways to make money
• Cut costs and save time
• Understand customers better
• Spot problems before they get big
• Stay ahead of competitors

For example, a store might use data to figure out which products to stock. Or a factory could use it to make its machines run better. Even small businesses can improve their activity with Data Analytics by gaining a better understanding of customer behavior, optimizing marketing campaigns, improving operations, and make more-informed decisions by analyzing website traffic, customer purchase history, and financial data to identify trends, preferences, and areas for improvement. By using data, your small businesses can personalize customer experiences, streamline processes, and ultimately drive growth

Some principal steps ideas in Data Analytics include:

1. Data collection: Gathering information from different sources
2. Data cleaning: Fixing mistakes and organizing the data
3. Data visualization: Making charts and graphs to show findings
4. Statistical analysis: Using math to find patterns
5. Machine learning: Using computers to find complex trends

Tools for analytics range from simple to complex. Spreadsheets like Excel are good for beginners, while large companies might use fancy software like Tableau or Python.

It is important to ask the right questions when doing analytics. Good questions lead to useful answers. Bad questions can waste time and give wrong ideas.

Privacy is a significant concern in Data Analytics. You must be careful with people’s information, and you may need to follow laws and keep data safe.

Building a Data-Driven Culture 

Getting your team on board is crucial. Some suggestions follow to make data a part of your business DNA:

1. Lead by example. Share data in team meetings.
2. Make data easy to access. Use dashboards or regular reports.
3. Celebrate data-driven wins. Did a new strategy boost sales? Throw a pizza party!

Offer workshops or online courses. Encourage questions and curiosity about numbers. Create a “data champion” role — an individual who can help others understand and use data.

Then set clear, measurable goals. “Increase sales” is vague. “Boost monthly revenue by 10%” gives a target to aim for.

Use dashboards to keep an eye on key metrics. These give a quick snapshot of business health. Popular measures include:

• Sales figures
• Customer satisfaction scores
• Website traffic
• Inventory turnover

Check you progress regularly. Weekly or monthly reviews help catch issues early. Celebrate wins and address setbacks promptly. Be ready to adjust. If a goal seems out of reach, don’t give up. Tweak your approach based on what the data shows. Small changes can lead to big wins over time.

Data Analytics will give your business tremendous advantages, since this approach paves the way for wiser decisions based upon facts, instead of on gut feelings. Not working with an MSP to adopt Data Analytics can cost you more in the long run, since competitors who use data often pull ahead. It’s like trying to run a race in dress shoes while others are wearing sneakers.

Carl Mazzanti is president and co-founder of eMazzanti Technologies in Hoboken, NJ, providing IT Consulting and Cyber Security Services for businesses ranging from home offices to multinational corporations.