The five phases and uses of analytics:
1. Define KPIs and set targets
The first stage in making use of analytics: ensure the operation has clear targets and KPIs (Key Performance Indicators). Will all decision makers receive data based on metrics relevant to them? How will the data be measured? Where will the data come from? The basic starting point is to organise a KPI workshop to define KPIs and targets to be measured for different parts of the business.
Operation-based KPIs and their definitions are a fundamental requirement for solid analytics. Without them, decision makers can easily waste time and resources measuring non-essentials. Participants in the KPI workshop also determine all the data required for KPI measurement and their sources.
The following points are important:
● be aware of limitations of different data-gathering methods and applications
● understand that monitoring is sample based and
● consider whether or not analytics software will work accurately.
This is where our data gathering professionals can assist you by defining sufficiently large samples and scrutinising the quality of data sources.
2. Communicate targets and commit
KPIs shouldn’t remain the property of just a small group. Management must ensure that personnel understand the KPIs – as well as the goals – and commit to them. The entire staff must also embrace them and work towards the established targets. Although communication plays a major role here, training is also required. It is essential to ensure that at least all key personnel know how to measure the defined KPIs.
3. Gather, pool and share data
Sharing results encourages commitment to KPIs and to the company’s culture of measurement. Companies should take the following actions to simultaneously track different metrics to acquire a solid and comprehensive view of business operations:
● construct monitoring programmes<
● set goals for tracking applications
● secure functionality of tracking programmes and
● gather sufficient data
All results should be shared with business decision makers and staff by using a dashboard, for example. This ensures that analysts aren’t the only ones who have fun; everyone becomes familiar with the performance of their areas of responsibility. Sharing results makes it easier to react and take action when required.
4. Analyse and make action proposals
Once monitoring has been set up and sufficient data gathered, it is time to analyse and review the situation. If the tracking programme has been well-designed and constructed from the outset, it will be easy to observe different metrics in parallel and to see their interactions. Analysis should always guide activities, so decision makers who have the opportunity to take action should participate in reviewing results.
Analysis should take place on a monthly basis at minimum. If a company engages in weekly marketing activities, then analysis and reaction should also take place weekly. Analysts and individuals in charge of various business areas should review results on a daily basis.
5. React, learn and develop
How quickly you react is one of the most important competitiveness-building factors. What is the one concrete and immediate benefit of continuous monitoring? Your company can react quickly to the changing metrics in response to customer behaviour. Reaction speed is one of the most important competitiveness-building factors, particularly in highly competitive sectors and online.
Genuinely listening to your customers and measuring customer satisfaction also help build a competitive advantage. Analytics and measurement enable you to do this. The information based on customer behaviour constantly being gathered helps companies understand their customers better. Analysis isn’t done for the sake of it. Measures are not adopted just for something to do. Analysis-driven policies support company strategy and guide business development and growth.
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