What really is data analytics, how does it work and how can my business benefit from it? These are just a few questions we hear ever so often while consulting clients. The topic itself is so huge and complicated that we thought the best way to explain it would be through an analogy.
You are An Apple Farmer
You own an apple farm and you want to know the number of apples you grow but you are too busy with the farm so you hire someone to count them. You sell your apples too, and you get your apple counter to keep a record of the number of apples you have in the beginning and at the end of the day, every day. Many days and months pass and you put sheet after sheet of the apple count together and you discover patterns and trends in the purchasing behaviour of your customers.
The trends and patterns help you realise that during the colder season, your output of apples are the same but people buy less than during the summer. You then set out to dig deeper into this trend, and find ways to keep the sales of apples consistent throughout the year, beating your competitors at the game and becoming an apple farm tycoon.
Apples are your data, tracking them is important, analysis is key
Apples are your products/assets, knowing their movement is important. For starters, you will know if you know if your supply of apples matches the market’s demand, as well as the consistency of the ratio of demand to supply throughout the year. Pegging the price to each apple and drawing the cost down gives you your profit. When you have enough data, you will find trends and patterns in your production. These trends can help you understand your own organisation better, help you reduce inefficiency and therefore reduce costs.
You found the sales data of oranges
Now let’s take the analogy one step further. If you combine your own apple sales data with, say, orange sales data, you might find some interesting insights. On days that oranges sell really well, you find that sales of apples go down. Why does this happen? Answering this might help you find better ways to beat the competition.
Apple sales data are your “internal” data. Information that you collect from your own business/ production/ marketing campaigns to understand your company’s performance. Oranges sales data (let’s not elaborate on how we get this dataset first), are “external” data from outside of your organisation to understand external factors. Combining both datasets can help you understand external factors that might impact your performance as a business, while analysing them together will help you ride the waves and even push your business to the next high.
Cutting out the guesswork
We interact with multiple devices, multiple programmes through multiple platforms while multi-tasking every day. A survey done as early as 2014 found that 40% of all online adults start an activity on one device and finish it in another, and this percentage increases with the amount of devices owned. Another recent report supports this claim, but also added that the mobile phone is the “key device” throughout the multi-device purchase journey.
With every digital consumer now owning up to 3 devices each, it becomes even more important to know at which point (device) a potential lead becomes a converted customer and further optimise each of these touchpoints. Data collected from your digital assets can be used to build a customer profile and a consumer journey, helping you identify the touchpoints and decide how you can further optimise it; ultimately improving your business.
So you want to know how to improve your apple sales?
Our team has done the groundwork by putting together Insights to help you understand your external environment better. If you’d like to find out more about how to track your apples, or need help to refine your consumer journey, feel free to drop us a line.