Did you know by utilizing data analytics for strategic decision-making, businesses can enhance their decision outcomes by up to 1% of sales? Adopting this approach can have a tremendous positive impact on your business in the long run. Small and medium-sized business (SMB) owners can benefit by implementing data analytics in their decision-making.
With that said, let’s discover how data analytics can improve your business’s financial health by enabling your finance team to make better decisions and avoid revenue loss.
What Is Data Analytics?
Data analytics involves using a computer to extract valuable insights from raw data by identifying patterns and organizing the information. By examining meticulously processed financial data, businesses can enhance their financial performance. With tools like the ZikZuk Tally mobile app, businesses can anticipate future cash flow and plan accordingly.
The Key Ingredients for Sustainable Growth: Analytics And Technology
SMBs operate in a competitive world. There is always pressure to improve profitability and have a competitive edge over others. In such a scenario, analytics and technology are the two key ingredients for sustainable growth. SMEs generate a lot of data which, if analyzed wisely, can be the key to success, increase efficiency, and boost productivity.
Data analytics can help business owners decide how to promote products, engage with clients, and manage finances. Apart from offering actionable insights, there are several other reasons to use data analytics to change your business’s financial standing.
5 Reasons How Data Analytics Helps Your Business Grow
Helps In Making Business Process Efficient
A significant benefit of data analytics is its use to make businesses more efficient. Financial analytics give business owners detailed and accurate reports about the company. As a result, it strengthens the relationships with clients by using the data to identify who to give early discounts to, information about receiving early payments and identifying clients that need follow-up reminders to remind them of payments.
By improving the business process, business owners can make informed investments and take calculated risks based on the company’s financial standing.
Helps in Identifying Hidden Expenses
With better visibility over data, a business owner gets complete visibility over unnecessary expenses, which never came to his/her notice. For instance, say some expenses are explicit and some are implicit. With the help of data analytics, one can easily identify implicit expenses impacting the overall budget and take necessary action to reduce it.
Identifies Gaps And Opportunities
With data analytics, you get a 360-degree view of your business. For instance, deep insights into sales trends can help you know the answer to questions like which products are dragging profitability down and which are driving more revenue.
A tally mobile app like BFM offers you real-time financial insights, a snapshot of your business finances, and a business calendar to manage daily activities. By analyzing your daily operations and overall finances, you can easily identify missed opportunities and gaps in your business to improve your business.
Improves Customer Service
Customer service is more important than ever, and more small businesses have started taking the help of analytics to retain their customers. Small businesses are leveraging data analytics to retain customers since only a 5% increase in customer retention can lead to up to a 25% increase in profits. With the availability of real-time insights, you can learn more about how your customer behaves.
This will, in turn, help you offer them customized services and keep them engaged on a deeper level and thus you will observe a maximum amount of improvement in your services.
Helps in Increasing Revenue
Using a tally mobile app like BFM will help business owners to minimize debts and increase revenue. With the help of sound financial planning using data analytics, you can improve business cash flow, profitability, and the company’s value. You can achieve this using the following data
- Prioritized Debtors data: This data will list debtors with aging analysis based on their bills pending to be paid
- Cashflow forecasting: This data will help you manage your cashflow better with actionable insights
- Cashflow projections: This data will help you make more informed future decisions.
With the help of this data, you can identify client’s behavior and plan your cashflow accordingly which will ultimately help you generate revenue.
Small and medium-sized business (SMB) owners stand to gain a lot from adopting data analytics in their operations. By leveraging data analytics with tools like the BFM tally mobile app, SMBs can optimize their financial performance, customer service, revenue, and overall efficiency.