In a modern data-driven world, businesses that use data to good advantage are at the top of their game. But for many, the amount of data can be too large to handle, mainly because they don’t have apt specialists or technologies such as BI tools. The latter are important because they allow you to collect unstructured data from various resources, analyze it, and derive insights from it. There are lots of BI solutions serving particular goals but the common benefits they offer are a reduction in cost and time spent on data management, an increase in revenue, ability to access data in real-time and more.
BI tools can boost performance in any part of your company, however, where they are needed the most is the financial department, the marketing department, and CRM.
Harnessing the power of financial data
The significance of BI tools for the department of finance can hardly be overstated as the opportunities they offer are immense.
BI tools can help your company discern internal and external factors that affect your market performance. BI dashboards will present the holistic view of your firm’s financial situation allowing you to detect and deal with problem areas in time. Analysis of historical data will reveal potential risks as well as future trends so that you can build more effective strategies.
Predictive analytics tools will be of great service when it comes to gaining insight into customers, products, and even employees. For example, you can target profitable customers more efficiently by studying their buying patterns and demographic information which BI tools can gather.
It will also be easier to foresee fluctuations in the popularity of a product and avoid overstocking or understocking.
Besides, you can use BI tools to retain employees. Losing employees is damaging both to the company image and performance, so by analyzing the behavior of the current employees and the ones who left, you can take preventive measures and address the issues faster.
Finally, nothing improves the ability to take actionable decisions better than a clear understanding of the company’s KPIs, which is another factor every executive needs to keep a close eye on. BI tools will provide you with the up-to-date report on the crucial financial figures such the Operating Cash Flow, Net Profit Margin, Burn Rate, etc.
The important thing to note, however, is that it’s imperative to standardize data in your organization before the implementation of a BI tool. Standardized data makes financial reporting speedier and more straightforward because data isn’t being pulled from multiple resources which may contain conflicting or simply wrong information.
Planning successful marketing strategies
Marketers heavily rely on data when planning campaigns, targeting potential clients and allocating resources. So, no matter how good a marketing strategy looks on paper, if it’s based on inaccurate data, it won’t get you anywhere. This is another field where BI tools can save the day by presenting data in a way that will make marketing strategies bulletproof.
As we’ve pointed out earlier, BI tools can help narrow down the target audience and reach the right people at the right time. But the abilities of analytics software go well beyond analyzing demographics, and to see the bigger picture, it’s necessary to study engagement, purchasing and interacting patterns, and ROI.
Social analytics tools will be useful for creating a comprehensive target audience profile because apart from analyzing customer behavior, you can also gain insight into their thought process.
Social analytic tools comprise two facets: web analytics and social media analytics. Web analytics will show who visits your website, where they come from and what draws their interest. These tools highlight the successful areas of the site as well as the links that generate traffic.
Social analytics tools collect information from posts, comments, likes, shares, etc. on Facebook, Twitter and other social media. Such data allows to understand consumers’ needs and wants, take note of the criticism and praise, and adjust the marketing campaign accordingly.
Lastly, marketers must keep track of KPIs as well to evaluate the success of the campaign. Metrics like Cost Per Lead acquisition reveal the cost of each lead and where the most expensive and valuable ones come from.
Improving customer relations
We’ve already outlined how BI tools can offer a glance into the mind of a customer and how easy nowadays it is to listen to what they have to say. Some would argue pleasing modern consumers seems harder than before, but with the apt tools and the right attitude you’ll find out it’s quite simple.
When a person contacts customer service, they expect to receive a personalized solution to whatever problem they have. Having collected necessary data on this client, you can already predict what may trouble them and how to address this problem. As a result, the person feels heard and their opinion appreciated. This becomes a pleasant and authentic experience for both sides.
To further empower your customers, implement a BI tool they can use to manage their costs and control what they pay for. This way they won’t be feeling like a mindless puppet knowing they also have a say in the matter.
The influx of data can open businesses to a lot of exciting possibilities once they learn how to use BI tools. Business intelligence can optimize performance across the whole organization and help you gain a sustainable competitive edge. It may be considered one of the most valuable business assets these days since it can improve not only the financial health of your company but also your marketing strategy and customer service.