How-to Make Data-Driven Decisions in Your Business
Recently, a study found that 62% of businesses heavily invest in data collection. However, only 38% actually have a strategy for using this data.
Why collect data if you don’t plan to use it?
The truth is, efficient data collection has a multitude of benefits, better business decision-making being the most lucrative.
What is Data-Driven Decision Making?
Data-driven decision-making is using your numbers as a basis for making and supporting your business decisions.
Typically, data-driven decisions are connected to financial metrics, however, they can also be used to drive other areas of your business.
- Customer service can be improved by looking into sales numbers, customer satisfaction metrics, and employee performance.
- Accurately pricing your products can rely on metrics like net profit, sales, and market comparisons.
- Marketing tactics can be improved by looking into return on ad spend, customer lifetime value, and customer acquisition cost.
Benefits of Data-Driven Decision-Making
Data can be collected and applied everywhere to help you make decisions, and doing so comes with many benefits.
It’s a Proactive Approach
Data provides a picture of the past and insight into the future. Through reports and forecasting, you can see where your business has been and where it is headed.
This means you don’t have to wait for a problem to arise before you take action to fix it.
You’ll already see where issues lie and can promptly make data-informed changes.
Consistency Results
Relying on data to make decisions leads to consistent results.
It means you’re no longer basing decisions on intuition or what you think might work. Instead, you’re using concrete evidence as support.
Increased Confidence
With data-backed decisions, there’s no guesswork. All of your information is right in front of you.
The right tools will provide you with the reports, real-time info, and forecasts you need to support your decisions and move forward with confidence.
Why You Need Efficiency in Data to Make Better Decisions
While all of these benefits come from using data, they are not maximized without efficient data.
Efficiency is crucial in the decision-making process, here’s why:
With Efficiency, Data is There When You Need it
The best way to have efficient data is to rely on automation.
Automating your processes provides you with real-time data with just the click of a button. This lets you see exactly where your business stands at any moment.
It also means less manual work and fewer inaccuracies, two things that slow down decision-making processes.
You Can Build Stronger Goals
To create goals, you need to know where you stand. Then, based on your numbers you can set benchmarks that are attainable but still promote business growth.
Efficient and accurate data is the key to this process. It ensures your goals are tailored to your business.
Efficient Data Leads to More Efficient Processes
As previously mentioned, data can give you insight into all areas of your business.
When you notice your data pointing to a lack of efficiency, it gives you the opportunity to make corrections.
For example, let’s say you are reviewing your data and notice that one of your sales channels isn’t producing strong results. To solve this problem you can look deeper into your data to determine where the issue is.
Once you’ve identified the cause you can then adjust your process to solve the issue.
Efficiency in Data Builds a Stronger Team
Using efficiency in data to build a stronger team ties back into concrete evidence. With solid data, you can show your team the “why” behind your decisions.
Your team will no longer question if it’s the right decision, instead, they’ll have a clear reason why it is the right choice for your business.
Relying on efficient data also gives your team the opportunity to track their progress and see how their work is benefiting the business as a whole.
Work with an Experienced Accounting Partner to Make Better, Data-Driven Decisions
Efficiency in data can have a massive impact on your business. In every area, you can see improvements when you let it drive your decision-making.
For help implementing systems and processes that lead to efficient data collection and use, contact U-Nique Accounting!
We will work with you to ensure your data is efficient and ready to help you make the right decisions for your business.
