Guides and tips

    March 13, 2024

    How to increase revenue with business analytics

    In today's fast-paced business landscape, the ability to drive revenue growth is important for success. Business analytics is one of the most powerful tools at a company's disposal. Studies reveal that a significant portion—55%—of enterprise data remains untapped, highlighting the critical role data plays in today's competitive market.

    Businesses can uncover hidden opportunities, optimize strategies, and maximize profitability by leveraging data-driven insights. Research conducted by MIT reinforces this notion, demonstrating that enterprises embracing data-driven approaches consistently outperform their counterparts by enjoying a 6% higher profit margin on average.

    Understanding business analytics

    Business analytics involves data analysis tools and techniques to gain insights into business operations, performance, and trends. It covers various methodologies, including descriptive, predictive, and prescriptive analytics. 

    Descriptive analytics focuses on understanding what has happened in the past, predictive analytics forecasts future trends, and prescriptive analytics provides recommendations on what actions to take.

    According to a recent study, businesses adopting data-driven strategies can achieve significant cost-efficiency savings of up to 30% and a notable revenue increase of 20%. Leveraging data analytics offers invaluable insights into optimizing resource management, planning processes, gaining deeper customer understanding, and driving operational efficiency and revenue growth.

    How to increase revenue with business analytics

    Use data to personalize services: The primary objective of the sales department is to optimize sales while nurturing trust and fostering loyalty among customers. Sales teams with ample data can tailor customer communications and offer personalized services, a critical aspect considering that 71% of consumers anticipate personalized interactions from companies.

    With personalization in services, organizations will experience:

    • Boost in customer retention: In the financial sector, a 5% increase in customer retention results in a profit surge of over 25%.

    • Increase in repeat purchases from current customers: The likelihood of selling to an existing customer ranges from 60% to 70%, contrasting with a mere 5% to 20% probability of selling to a new prospect.

    Equipping sales teams with precise data helps them pinpoint customer issues and seize promising leads. Crafting personas is an effective method for discerning the average user's needs, objectives, aspirations, and obstacles.

    Identifying revenue opportunities: Business analytics is crucial in identifying untapped revenue opportunities. Businesses can uncover patterns, trends, and correlations that may take time to be apparent through data analysis. For example, analyzing customer purchase history may reveal cross-selling or upselling opportunities. 

    Additionally, studying market trends and competitor behavior can help businesses identify gaps in the market where they can capitalize on new revenue streams.

    Identify strong and weak products: For wholesalers or distributors, managing a wide range of products poses a challenge in identifying strong sellers, their contributions to overall sales, and declining product lines. 

    Analyzing sales trends from past transactions is an effective method to detect upward or rapid declines in product popularity. For example, if competition has led to inconsistent profit margins for specific products or fluctuations in sales, businesses can adapt their sales strategies accordingly.

    Market segmentation: The deeper your sales data analysis, the richer insights you'll gain for your prospects and customers. Information availability enables effective segmentation of data into actionable points. 

    For instance, you could tailor a marketing campaign targeting customers who purchased a specific product within the last three months but haven't bought other products. If the products are complementary, you could offer a 20% discount to customers who purchase both.

    Increase success of new product and service: Serving consumers' immediate needs is commendable, yet anticipating their future requirements is even more advantageous. Over 25% of revenue and profits across various industries stem from introducing new products. 

    Employing a data-driven approach to competitive and market analysis provides a precise understanding of your industry's current landscape and the potential evolution of trends.

    Following the launch of a new product or service, real-time insights into its reception by customers are invaluable for making pivotal adjustments. Several key metrics to monitor include:

    • Performance comparison of your product with directly competing products.

    • Performance analysis of your product across different markets.

    • Performance evaluation of your product compared to your previous offerings.

    Implementing business analytics

    Increasing revenue using a business analytics strategy requires careful planning and execution. To increase revenue, businesses must adopt the right tools and technologies, develop the necessary data infrastructure, and build analytical capabilities within their organization. 

    Through its analytics dashboard for businesses, Klasha, a cross-border payment provider, helps global and African businesses gain real-time insight into their daily business performance. It provides an overview of the reports and metrics you care about most, allows you to monitor your total and successful transactions, and analyses which payment methods your customers use most.

    If your business requires cross-border payment solutions, such as paying suppliers, global partners, and overseas staff or collecting payments from customers within and outside Africa, including repatriating local revenue to global entities, Klasha offers a seamless payment solution. Additionally, Klasha provides a comprehensive analytics dashboard, offering valuable insights into your business's performance and health.

    Create a Klasha Business account or speak to our sales team to get started.