Every business owner is constantly looking for new ways to grow their business and increase profits. They read book, subscribe to blogs and watch interviews to learn new strategies and apply them to their own business. But did you know that you already have a valuable source of ideas right under your nose – your business data. Yes, the data stored by your website, blogs and apps is a treasure trove of insights, if used properly. It can not only help you identify new business growth areas but also streamline costs and increase profits.
Here are 5 ways you can grow your business faster by leveraging your business data
Signups are a great source of insights for every business. They tell you about the quality of traffic your website attracts every month. If you’re an app-based business, then you can track downloads instead. Monitoring signups due to each traffic source will tell you how users came across your site and how your marketing efforts are doing. You can even compare the traffic from each source with the number of signups/downloads from it, to identify high-converting sources of traffic for your business, and put more resources behind them.
2. Paying Customers
It’s equally important to analyze your paying customers to understand what kind of users find your product/service to be valuable. You can discover a lot of useful information about them, such as their location, age, demographics, industry, and more, just by analyzing your customer database. This will give you a clear idea about your target customer and help you tailor your products & services to suite them. You can even segment your customers by location, age and other attributes and create highly personalized marketing campaigns to target them more effectively. You can even offer products that complement the ones they’ve previously purchased from you. For example, if you find that most of your orders are footwear from women aged 25-35 years, then you can offer women’s accessories such as makeup and bags to bring them back to your store.
3. Sources of revenue
Revenue sources tell you which sources of traffic generate income for your business, how many paying customers they bring in and how much revenue they create. If you compare this with the amount of money spent on each channel, you can get the ROI (Return On Investment) for each channel. This will help you focus more on high ROI channels. You can also create different marketing strategies for each channel, based on the type of customers they bring in. For example, you may find that while social media and SEO generate similar revenues, SEO brings in a smaller number of high-value customers and social media drives a large number of low-value customers.
4. Sources of Expenditure
The most common reason why businesses have to shut down is because they run out of money. So it’s essential to monitor your business expenses every month, so you can proactively look for ways to optimize them. Ensure that identify all sources of expenditure, and monitor them regularly. Don’t leave out anything, else it will be too late by the time you discover how it’s eating into your profits. Also, compare your monthly expenses with those of previous months to find out which ones have increased and which expenses have fallen.
5. Products & Features
Every online business stores data about which products are sold, who purchased them, and when. This can give you a lot of useful insights such as which are the top selling products, your customer preferences and interests, which days of the week record most sales, which products have seasonal sales trends, and more.
If you run an app-based business, you can analyze product data to find out which features are used the most, which features are used by each type of customer, how frequently the top paying customers use your app, and more. This information can, then, be used to build new features and updates that increase retention and boost revenues.
To begin with, you can create a simple business dashboard that tracks the key metrics about your business, and review it with your team, once a week. This will give you a good idea of how your business doing, and how you are progressing towards your goals. As your business grows, you can add more numbers and KPIs to it.
Wrapping it up
Your business data contains a variety of useful information about customers, products, costs, and revenues. It also contains tons of valuable insights about user behavior and preferences. If you monitor it regularly, you can not only keep a track of how your business is performing but also identify which areas are doing well and can grow faster, and which areas are not doing so well and need your attention. This will allow you to discover new growth opportunities as well as spot issues early on, and act quickly.