Analytics is something that every business needs to stay competitive in today’s data-rich world and every manager needs to at least understand the basics of analytics and know when and where to apply it.
Below are some of the key analytics techniques companies of all shapes and sizes need to know and understand in order to grow their business.
1. Product profitability analysis
Most companies know how profitable the business is, but very few take the time to delve deeper into the individual profitability of each product or service they offer. As a result, few companies know which of their products are making or losing money.
2. Analysis of customer profitability
The customer profitability analysis determines which of your customers are actually making money. In business life it is often assumed that every customer is a good customer, but that is not always the case.
3. Market size analysis
The market size analysis determines how large the market is for your products and services and whether there is any potential for growth. Essentially, the size of a market can be viewed in terms of “how many”, “how much” and “how often”.
4. Non-customer analysis
Non-customer analytics is about understanding what people who are not currently your customers think of your product, service, or brand. If you find new markets or new bags in larger markets that have not yet been addressed by you or your competitors, you have the opportunity to increase sales inexpensively.
5. Analysis of customer lifetime value
The customer lifetime value analysis analyzes how valuable the customer is to the company throughout the lifetime of the relationship. Rather than looking at the profitability of transactions, the aim of this tool is to determine how long a customer is likely to remain a customer, how often they are likely to buy during that period, and how valuable they are during that period.