Statistics play an important part in any business. It isn’t just numbers made to look pretty on a graph – used correctly, it can give you valuable insight as to your current performance as well as giving you a helping hand when it comes to forecasting. Very often they’re either overlooked or just glanced at but how many of you really take the time to extrapolate the important data and apply it in your efforts in pushing your company forward?
For us, from day one we paid attention to all our statistics and till today it plays an important role in our day to day operations. It’s used by the sales team, billing, QA and tech support team. They all have their own set of stats and they all use it to their advantage. It’s valuable and free!
So what kind of statistics can we obtain from our existing client base and what can we do to use that data to our advantage.. From a sales point of view, let’s take a look at an easy to obtain data source:
Customer Sign Up Rates Across an Entire Year
When it comes to your marketing efforts, this can be extremely crucial. When a certain month has less sales than another or vice-versa, it’s important to take into account why and then you’ll be in a better position to prevent it. For example, the recently gone black friday/cyber monday.. It’s not uncommon (depending on your industry) to see a slight drop in sign up rates on the lead up to black friday/cyber monday.. The reason here is pretty obvious, people are holding out buying anything in hopes of scooping up a great bargain.
But let’s look at a more abstract view.. seasonal changes will (depending on your industry) have an impact on your sales. It’s important that you identify these moments and co-ordinate your marketing efforts to reduce the impact your business will face. It can be a promotion or even up-selling to existing customers. You could also possibly increase your advertising efforts on the build up and during the times where things a bit slow.
Similarly, it’s good to know when demand will be at its highest as it will give you an opportunity to gear up and make sure you have the capacity to (that includes staffing needs) to handle demand but also make an extra push to truly maximise those sales.
Essentially, the point here is that statistical data plays a crucial part in all aspects of your business and it’s really important that you do pay close attention to the valuable data you have available. It allows you to forecast and plan appropriately and you’ll quickly find that as market conditions evolve, that data will have tell-tale signs indicating the direction you should be paying closer attention to.