Everyone loves to talk about data these days – and with good reason. If you’re making business decisions based on emotions instead of cold hard facts, you’re setting yourself up for failure. Being data-driven means you make a hypothesis, test it out, analyze the data, and assess what to do differently next time. Here are some ways to start making data part of your everyday life.
Really Get to Know Your Customers
One of the most important things you can do as a business owner is to learn about the customers who purchase your product. How old are they? Where do they live? What are their interests and hobbies? How do they prefer to shop? How do they prefer to receive information about your business? There’s no shortage of questions you can answer by looking at your customer analytics – and you may be surprised by what you learn. A data-driven approach to your customer information means (among other things) organizing purchase data – how many times in a year does your average customer make a purchase from you? How much do they spend? Are these visits spaced out or all grouped around, say, the holidays? From this data you can adjust and make decisions. Perhaps a customer loyalty program would help shorten the time between visits or increase their number. If you notice that your business is particularly quiet during a certain time of year, maybe consider scaling back your hours or even closing completely for a short time. There’s no limit to what you can learn once you start crunching the numbers.
Take Stock of Your Inventory
Your inventory management solution is another treasure trove of data. Take a deep dive into whatever system you use to keep track of the products that pass through your business. You’ll likely notice some trends on which you can capitalize. If you always end up with too much of something at the end of a season, come up with a fun sale or simply order less from the manufacturer. If you always sell out of your new items in a heartbeat but then overestimate follow-up demand, build some extra weeks into your reordering scheme. A data-driven study of your inventory numbers could save you some serious cash!
Organize and Automate
All this data can get overwhelming – and fast. Develop a system to keep track of everything and organize it in a way that makes sense to you. There is no shortage of business management systems that can help you with this, but even a simple spreadsheet is better than nothing. Come up with a way to group and store your data that’s easy for you to understand so you don’t dread going through it. As a bonus, automate your data so it flows seamlessly into your chosen reporting platform where it waits patiently for you to analyze it.
At 360 Payments, we understand the value of data when it comes to your payments experience. It’s why we take a deep dive into your business and ask you all kinds of questions before we make a recommendation – we want to make sure we have all the data necessary on what makes your business unique. Want to learn more? Give us a call at 1-855-360-0360 or drop us a line on our website. We’d love to show you how we’re changing the fabric of the credit card industry.
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