June 29, 2020
Why You Need Business Analytics To Succeed
It’s only been a few weeks since we moved into our new house, and I’m happy but worn out. You never realize how much stuff you’ve accumulated until you have to sort through and move it all! All these decisions have my head spinning. The last time I felt like this was when I was trying to figure out how to approach business analytics.
Wait… what?? What does business analytics have to do with getting settled in a new house? The connection may not seem obvious yet, but stay with me here.
So far in our moving journey, I’ve set up most of the important household items (the beds are made and I know where the wine corkscrew is!), but there are a lot of things that I still don’t know what to do with to make this feel like home. It’s hard to decide what to tackle next.
What’s in those boxes we pushed into the corner? Where did I put the other half of the smoke detector? That corner of our new living room looks so empty; do I need to go furniture shopping?
Exciting, yes, but also overwhelming. No wonder moving comes up third in the top five most stressful life events.
The Paralysis of Analysis
It feels exactly like the overwhelm and anxiety that came with learning how to apply business analytics to help grow my company. I had so many questions… How do I organize and use the data I’ve collected so far? What business insights can I expect to get from that information? How can I use those insights to solve business my problems – like how to be more productive and bring in more revenue? What data is even worth measuring??
My typical thought process back then went something like this:
…I know I need to figure out how to use business analytics – but maybe I’ll do it tomorrow.
…I need to get on the Internet and understand how analytics reporting tools work – but it takes me forever to learn how to use new technology and I don’t have that kind of time right now.
…Maybe I should start by deciding what information I need to start tracking – but wouldn’t it be so much nicer to run to the coffee shop and get a chocolate protein smoothie first?
…Do I really need to worry about all these numbers? Can’t I just focus on doing what I love best in my business?
Why do we do this to ourselves? It’s enough to make us crazy.
Business Analytics in Action
Here’s what I finally realized had to happen to get my act together with business analytics:
Stop procrastinating and just do it.
Start small if you need to, but start. I had to shift my thinking away from believing I didn’t have the time, tools, or resources and instead embrace the fact that the performance of my business had to be a priority. If I really wanted to succeed, I needed to focus and get comfortable with business analytics. My starting point was finding out what data I already had on hand, and it turned out I had a lot more than I thought (which was a good problem to have).
Get the right tools.
There are lots of business analytics tools out there that are free, and most of them are easy to figure out and use. So, there’s really no excuse to avoid finding one that works for you. At first glance, a reporting tool or business dashboard can seem bewildering, but don’t let your initial monkey-mind response discourage you. Take some time to learn how it works and what it’s telling you. Once you do, you can decipher at a glance how parts of your business are performing and what improvements you can make. Speaking from experience, I’ve found it to be an excellent investment of time and effort.
Measure what matters.
When I first started using business analytics, I got caught up in what are called vanity metrics, for example, my number of Facebook Likes. Of course, we all liked to be liked, but that number really doesn’t tell you much about your business performance; it just makes you feel good. Instead, you need to measure data that, for example, tells you how well your customer acquisition process is working and how your revenue is stacking up against your expenditures. The more you measure, the more you learn what data points are important and how you can use them to grow your business.
Keep asking questions.
Here’s another trap: blindly looking at totals in your business analytics metrics that don’t really provide info that you can use to make good decisions moving forward. When a metric goes up (or down), you need to figure out why that’ happening. Let’s say you ran an email campaign two months ago and your numbers went up. Last month, though, you didn’t run a campaign and your numbers dropped. Consider how that difference informs what you should be doing in the future.
Look for trends.
I’ve sometimes thought of trends as my business crystal ball. Watching patterns over time can help you predict the future performance of your business. Whether you decide to compare your numbers daily, weekly, monthly, or quarterly, pay attention to patterns over time. For example, spotting shifts in where your web site traffic comes from, what keywords people use to find you on the web, or how long site visitors stay on a certain page after you’ve updated that content all provide valuable insight into what changes you can be making to do better in your business.
From Now to Next in Your Business
I know that reaching your business goals isn’t easy. It requires you to grow and learn things that are often beyond your current experience and comfort. But, if you really want to take your business to the next level, you need to know what is making an impact in your efforts and why. These are the questions business analytics answer.
You start with the “what” – the existing data you have – and then move on to the “how” and “why” to detect which factors point to trends in your business. Now you have the information you need to take actions that will generate business growth.
Back to the connection between business analytics and moving to a new house… Don’t procrastinate like I did and let analytics be the “boxes” that you shove in the corner to deal with later. Make the performance of your business a priority. Shine a light on what you need to learn and do and take action.
The more you know about what’s really happening in your business and why, the sooner you’ll achieve your idea of success. Now that’s a goal worth unpacking!
Do you have questions about how you can succeed in your business and accelerate your journey toward reaching your goals? I invite you to learn more about From Startup to Success coaching packages. Begin with a no-cost 30-minute consultation to discuss where you are with your business and where you want to go.
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