The Basics of Analytics and Information Management
Over the past few weeks we’ve talked about topics like master data management, data integration and other key processes that ensure accurate data. However, we haven’t really talked about analytics and information management. Analytics are crucial to decision-making. Remember, though, analytics are only as good as the accuracy of your data. If you’re confident in your data, then this post will help explain analytics at a very high level, and illustrate how to implement those analytics into your business.
Figure Out What KPI’s You Need
The old saying, “Go with your gut,” is a great for those times when you can’t decide between choice A or choice C, like on a fifth-grade math test where you don’t have to show your work. But it’s not necessarily a good decision when making decisions that affect an entire company. If you were presented with the following two options, which would you think is a more responsible response?
Go with your gut
Analyze the data outlined in the report and then make your decision based on the numbers
Chances are, you’re going with option two. Sure, there are some decisions that require you to go with your gut. However, you should be going with your gut after you’ve done your homework. When considering a strategy to provide better analytics and information management for your company, it’s important to know what you need to know.
Return on Investment
Customer Acquisition Cost
Lifetime Value of a Customer
How the Customer Found You
How Many Similar Customers Do You Have?
The five bullet points above are just quick examples of information you might need when making an informed decision. For example, let’s say you’re trying to decide whether you should hire another salesperson, spend more money on marketing, or do nothing at all. You can’t make that decision without understanding the return on investment of your marketing dollars, the average revenue a sales rep generates, or the customer acquisition cost. It may sound like a good idea to run a $50,000 television ad, but if you only yield three customers with an estimated lifetime value of $10,000, then that may not be the wisest way to spend those dollars. Analytics helps decision-makers make informed decisions.
Get The Whole Team Involved
Different departments want access to different metrics. If you’re developing an analytics and information management strategy, it’s important to involve your whole team. The more you are able to track, the more informed your decisions will be. These decisions will aid in customer acquisition, customer retention and, perhaps most importantly, a competitive advantage to improve the company’s overall performance.
Partner with the Experts at Aspirant
At Aspirant, we are experts in analytics and information management. We have helped countless numbers of companies develop a strategy to have access to all of the analytics and information they need, when they need it. Analytics should be the most powerful and insightful tool for your company. If this is a pain point for you or your company, give us a call. We’d love to explore how we can help.
Phil is Aspirant's Technology Director with a focus on providing enterprise-grade solutions. His 30 years of experience have given him the opportunity to work across many markets, industries, and applications. Phil is leading a team of skilled web and mobile developers building strategic solutions for our customers.