For companies trying to get a handle on where their business is and where it’s going (everything from customer shifts to trends), analytics can be a powerful tool.
Rachel Ryan, director of finance for the National Retail Federation (NRF), shared ideas from a session on analytics held at NRF’s Annual Convention, which took place from January 10-13, in New York City. The session featured speakers Chris McCann, president of 1-800-Flowers.com, and analytics expert Tom Davenport, a professor of Information Technology and Management at Babson College.
Use the following tips from the NRF session to get started with analytics:
- Data analytics can track all-important customer behavior: As consumer attitudes shift, analytics help businesses understand things like who is shopping, how they’re getting there, what they’re buying and more.
- Data can influence decisions: Whether presenting ideas to management, selecting new products and/or markets, or deciding what should be featured in an email campaign, Davis notes that data—in the hands of those who can effectively analyze it—can inform those decisions.
- Even small companies can (and should) get analytical: While the expense continues to decrease, the capabilities have improved. For example, free services like Google Analytics (see an earlier tip on Google business listings) can be used to measure website performance, customer need and other key demographics.
- Focus analytics on business need: In order to make the most of an investment in analytics, focus on the area that’s most important to your business. For example, if you want to be sure you have the right merchandise, look at areas like supply chain analytics.
- Listen and respond to your customers: Some companies have started using “sentiment analysis” as a way to understand customer engagement.
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