How To Make Best Use of Product Analytics
Analytics play a big part in today’s successful businesses. We see that analytics is used in many aspects of the organizations. Today I will be explaining how analytics can help you to improve your bottom line by improving the efficiency in every aspect of your organization.
Improve Service Level and Improve Efficiency
Analytics help companies to understand if they can meet the customer demand without sacrificing from the quality and also in an efficient way. In industries such as delivery companies, analytics can play huge part to help company to determine whether they can deliver to their customer or not.
For example lets say that we are a food delivery company and from our analytics we know that when the traffic is going to be jammed and what points would be hard to deliver in the city. By using this information you can turn off the delivery for these locations in certain hours of the day, so that you don’t upset your customers with late deliveries and cold food, instead you could suggest delivery from the nearby places. This way you will not lose your customer and also you can use your couriers more efficiently. I am sure you would not want your courier to be stuck in traffic for 2 hours just for one delivery.
Cut Cost
Today, many businesses are overwhelmed with the unnecessary expenses. For example they employ too many people which leads to slackers that turns in to unnecessary expense and redundant workforce. By employing analytics, businesses can solve this problem. Some businesses are very cyclical by the nature. A food delivery company is one such example. In summer time orders typical drop because it’s a holiday season schools are closed and students move back home therefore they don’t order food anymore because mamma is gonna cook for them. Why order food when you can have free meals at home right? Using the predictive analytics, food delivery companies can forecast when the drop down in orders is going to occur and adjust the workforce accordingly to reduce the operational cost.
Improved Product Management
Analytics could allow companies to have better product management. This is especially true if company is offering multiple products in multiple regions. A product that sells well in one region might not be sought after in another. Green tea flavoured Oreo that sells in Asia might not be the best option in Europe. Knowing things like that will be very important to manage your products. Using analytics you can manage your product better by having insight on what products you should be offering in the different regions or what products should be offered in different seasons ( You don’t want to release a new ice cream flavour when its winter and -40 outside).
Better Supply Chain Management
Tracking your customers complaints and refunds will allow you to pick the bad performing suppliers. For example a company that delivers organic foods, supplied by different farms can track customer reviews and find the poorly performing suppliers to eliminate them from the supply chain.
Increase Customer Value
Many companies are pouring so much money in marketing in order to acquire new customers, without knowing whether these newly acquired customers will come back to their businesses or not. With analytics, businesses can have an idea whether their customers will be staying in the long term. Using Retention feature will allow companies to learn what percent of their newly acquired customers will come back and use their services or buy their product again. Having this information at hand can help companies to better optimize their marketing investments. By the way If you want to learn how to conduct a Retention analysis check out our post about it here!!
There are many more ways analytics can contribute to the success of your business. All of the points I have mentioned above improve the efficiency of businesses, this could lead to increase in the revenue. It is really important to implement analytics in to your organization and be data driven, because most of the successful enterprises today are fully data driven companies. Read about “how to be more data driven”.
