Formulate Business Cases and ROI for Marketing Analytics
Integrating business cases with data and analytics will help small business owner gain better return of investment. Using data analytics in formulating business cases can help entrepreneurs grow their business intelligence with the ability to use complex data as business solutions for their business. Accordingly, return of investments or ROI is used to measure profitability. It provides an index involving financial consequences upon which metrics are used in evaluating the financial growth of a business for its investments and profitable undertakings.
The use of business cases is likewise popularly used by small business owners and marketers in evaluating their operational issues and other business development schemes. Business cases are regarded as part of a company’s business intelligence tool that they can use in measuring the benefits earned by their company such as the actual benefits and the identification of potential or predictable benefits in their business operations. It is also linked to identifying the processes of the costs involved in order to derive business benefits from it.
Identifying operational issues within your organization
Identifying business issues are a common problem that you need to address almost every day. It is crucial to be mindful about whether your business operation is able to meet your target ROI and to quickly identify potential issues that can hinder the continuous flow of your business operation that could lead to loss and unproductive business. Taking a business case approach is a way that could provide you a set of predicted benefits for your company and you need to integrate the use of complex data and analytics for better analysis of the expected outcomes of reaching your target profits and evade losses.
Investigating your baseline costs and performance for analytics
To be able to capture the accurate picture about where your business case and performance stands, it is prudent to measure the present baseline costs and the performance of your business. It is crucial to make use of the available data that can help improve the information system of the company in analyzing its current operational condition. Some areas worth investigating includes the following:
- The number of employees skilled in data gathering
- The ability or expertise of your employees is analyzing data for business performance and intelligence
- The amount of time spend by your administrative staff in data gathering and analysis
- The costs of maintaining your data gathering tools and technology
- The software costs for computing and data analytics
- The real time data captured and your business responsiveness to it
Measuring the return of investment using analytics
Business analytics increase the business intelligence capability of your business that is helpful in reaching a more reliable and sound decision making process. Many companies are using various metrics in order to gauge the time that has lapsed between a significant event takes place and the time within which the information is captured and used for improving their business operation. Most of the time, the use of data analytics is more effective in optimizing the company’s ability to respond to significant changes that have an impact on their business ROI while eliminating the delayed response using manual processes. As a business enterprise grows, the data captured are getting more complex. Thus, it is important to improve the automated process of managing data as they become available in real time for the more appropriate responsiveness of your business operations to the demands from it.
There are different processes and measurements needed in order to identify the proper improvements your business needs for better optimization of its performance.
- Using data models
In order to provide adequate analysis regarding what your business needs, data models are required in order to show the various sources of your data and to present them accordingly using a database table for comparison and to identify their relations to one another. Data software has downloadable data reports in Microsoft Excel spreadsheets that make data analytics easier, organized and conveniently presented for better analysis. In some instances, there are data warehouses that are short of acquiring this feature which makes it more costly for businesses to hire another staff to handle data management for better data organizations for business analytics.
- User friendly data organization
Small businesses can save more by using user friendly data modelling documentation software that helps to organize data and information based on the data manager’s specifications and desired categories significant for the business operation. Some data documentation software is complicated, making it harder for the staff to easily relate to the captured data without the extra help for IT. As a result, data and information processing is better, clearer and organized which helps the employees to interpret the information smoothly and act accordingly with the desired results by making the right business decisions.
Quantifying the cost and benefit measurement for ROI
Data analytics and integrating a business case will usually entail costs, thus making the cost and benefit analysis important when measuring your ROI. The process is helpful as an informative tool in measuring how feasible a particular business project or undertaking can be and its impact to your business. A common formula significant in this respect is, the more benefits with less costs equals to profitability or ROI. Thus, to quantify the costs and benefits for your ROI analytics, consider the following:
- Consider the purpose
When undertaking the initiative of improving your business performance, you need to consider two major factors in your decisions, namely the value and priority. The value of your projects is dependent whether spending is worthy in exchange of the benefits to be derived from it. The priority will be answered by scrutiny of your current financial resources and security, such as whether you can afford to buy new IT or modern data software to optimize your ROI analytics.
- Evaluate the costs
The cost evaluation of your operation depends upon the urgency of the need to purchase new equipment, software and the maintenance costs. Business expansion may require that you need to expand your data software and analytics tools to accommodating the so-called big data explosion that can be significant in making your business more responsive and productive. Consider the cost of buying, installation, operation and maintenance costs involved prior to making an upgrade and identify how this can benefit your ROI analytics.
- IT related costs
The IT aspect of your business operation is more responsible for the data and analytics processes involved in your business. There are different technologies that you need in order to process data more accurately and quickly. Among the costs you should consider include the costs for database management, antivirus technology, operating system upgrades, system patches, network bandwidth and other IT-related costs. How you quantify your cost and benefit analysis will depend whether these costs will essentially facilitate the smoother capturing of the data needed for your ROI analytics and can help improve your business profitability and success.
Measuring your ROI with analytics can be an overwhelming process. Digital Warriors can help you undertake profitable marketing strategies that can help optimize your business performance and profits. We offer IT consulting, marketing analytics, social media marketing, search engine optimization and web design and development with experts in these fields to help you in your internet marketing needs. TALK TO US NOW!