10 Compelling Reasons Why You Need Business Intelligence

Business Intelligence

Why does your organisation need Business intelligence?

Every day, we live more and more of our lives on the Internet. From the products we buy to how we communicate, we rely on technology and artificial intelligence algorithms to make life more efficient. Just as the people who shop online can take advantage of technology to make life easier, so can the businesses who sell to them.

With a business intelligence system, businesses gain access to the data they need to drive revenue and meet customer demands. This allows you to stay ahead of the competition.

Business intelligence encompasses data mining, visualisation, analytics, and reporting that will keep you informed about every aspect of your business.

The importance of a quality business intelligence program cannot be overstated, which is why we’ve gathered 10 compelling reasons why you need business intelligence:

1. Gain customer insights

The ability to gain insight into customer behaviour is one of the key capabilities of business intelligence. With a solid business intelligence platform, you can analyse your customers’ buying patterns and better understand their needs. This allows you to make changes to products or parts of the buying process to make them more appealing to customers. For example, if you see that customers follow a few distinct patterns regarding the times or ways they buy your products, you can create different segments to specifically cater product offers or reminders to each type of customer.

2. Increase visibility

To maximize profits, boost efficiency, and grow your business, you need to know what’s going on in your organisation. Business intelligence provides you with the visibility you need to spot errors as they occur. This allows you to remain one step ahead, making decisions to move your business forward instead of focusing on damage control and putting out fires. By seeing problems right away and tackling them head on, you can put your energy toward growth.

3. Get actionable information

Too often, a business receives data that they don’t know how to use. The purpose of business intelligence is to provide you with the data you need to inform your decision making. For example, you may be receiving metrics that indicate a high percentage of customers are abandoning their carts before completing the checkout process. With the data provided by business intelligence, you can detect the problem and determine where the obstacle is in order to remove it.

4. Boost efficiency

Another one of the key capabilities of business intelligence is to improve efficiency within your organization. If different departments are unable to quickly and effectively communicate to share information and data between themselves, you’re wasting time and money. Business intelligence systems are specifically designed to allow organisations to share information across departments. This eliminates redundancies and the time spent processing data.

5. Capture data in real-time

When you need to make decisions in the moment, the last thing you want is to be waiting for the analytics report to be delivered. Sometimes you need real-time data in order to make instantaneous decisions or solve problems as they occur. Business intelligence gives you the data you need right when you need it, capturing real-time data and keeping you informed at all times.

6. Find ways to increase profit

If your business isn’t rising, it’s sinking. In order to grow, you have to constantly be on the lookout for ways to increase profit. Whether you’re trying to target new customers or upsell to existing customers, business intelligence can help you identify key areas that can be mined for profit. For example, the data can show you what products you’re consistently running out of so that you can order a surplus and take advantage of increased demand. The more data you have access to, the easier it is to maximise profits.

7. Identify market trends

Another great way to increase profit is to stay on top of market trends as they occur. In order to attract customers, you need to supply what is currently in demand. Business intelligence can show you data about what’s going on in your market and what your competitors are doing. This can help you identify potential revenue points and avoid falling behind the competition.

8. Track performance

When you employ new strategies, it’s important to monitor how effectively or ineffectively they’re performing. Performance tracking is a key capability of business intelligence that allows you to make changes on the spot. Perhaps you’ve just launched a new widget or are marketing on a new platform. Business intelligence will show you how well your efforts are working, giving you the opportunity to either make tweaks as needed or scrap your new strategy entirely.

9. Improve marketing

Marketing is one of the most data-reliant aspects of any business. An effective marketing strategy requires you to monitor factors like your campaign’s click-through rate, the cost per lead, and the customer acquisition cost. With business intelligence, you have access to all these metrics and more. This can help you invest more in the advertising strategies which work best while cutting those that don’t.

10. Gain an advantage over the competition

Businesses can’t operate in a bubble, and therefore you should always know what your competition is up to. Whether it’s so that you can avoid their mistakes or measure how you’re performing in comparison. Business intelligence will give you insights into the competition to help you make informed decisions for your business. Additionally, tracking your own performance and adjusting accordingly will always give you a competitive advantage against companies that aren’t using business intelligence.

When it comes to running a business, data is the most important tool you can have. Data tells you what customers are buying, when they like to buy and where they like to shop. It also tells you what is going on inside your company, including performance metrics and if any issues arise. But without an effective business intelligence system, you’re left unable to make the data-driven decisions you need to stay ahead of the competition. Invest in a quality business intelligence system and watch your business thrive.