Many entrepreneurs have enriched themselves by following their intuition.
Intuition is the ability of an entrepreneur to associate, evaluate and process a current scenario by unconsciously recalling a similar event from the past. However, to get the most out of intuition, some prior experience is needed.
Business intelligence enables small, medium and large enterprises to harness the power of big data by analyzing data and developing trends and solutions.
In this article we look at how business intelligence contributes to business growth.
What Is Business Intelligence?
Business Intelligence (BI) is a combination of tools, technologies, applications and practices that help organizations collect, integrate, analyze and transform raw data into relevant and actionable business insights. BI consists of
- Data Collection
- Analytical Processing
- Queries and Reports
What Is The Purpose Of Business Intelligence?
The main purpose of business intelligence in an organization is to help executives, managers and other business leaders make better business decisions based on data. Many companies use BI to reduce costs, identify better business opportunities and track inefficient business processes.
What Are The Benefits Of Business Intelligence In Business?
The main benefits of business intelligence stem directly from its purpose in today’s business environment. Business intelligence helps:
- Speed up the decision-making process
- Optimize internal business processes
- Increase business efficiency
- Increase turnover
- Gain competitive advantage
- Identify market trends
- Identify business problems that can be solved
A major problem in today’s business environment is that entrepreneurs often confuse business intelligence with business analytics. Entrepreneurs need to understand that the essence of BI is reporting, not process management. Business intelligence has the potential to transform businesses, but it is not used because business owners are not aware of it.
- What is BI?
- Where do I start?
- How long does it take to see results?
Let’s look at the components of business intelligence and the way it can help you transform your business processes for success.
1. Intelligent Decision-Making
For an entrepreneur or manager, it is important to have tight control over business data. Information is usually not the same as intelligence, especially when it is enterprise-wide.
The sole purpose of business intelligence is to organize and analyze business data. Business intelligence helps companies to make strategic decisions. A system that keeps business data in one place and up-to-date enables better business decisions and improved financial performance.
An intelligent customer relationship management (CRM) solution in sales plays a key role in bridging the gap between managers and employees. We close the gap with a system that provides a number of key business metrics, including
- Team performance
- Customer service performance
- Sales cycles
- Customer behavior
- Loyal customers
- Market trends
For each of these key indicators, separate data sets are collected in the CRM sales system. CRM then analyzes this data at a larger scale using the reporting function. Once analyzed, the CRM system provides data in the form of facts and figures that can be used by management to identify any discrepancies. In short, the entrepreneur does not rely on intuition, but makes decisions based on the concrete facts provided by the CRM system.
2. Better Customer Service
Better customer service is about delivering a great customer experience. Depending on the level of customer satisfaction, your business can succeed or fail.
If you leave a good impression on customers, you will encourage them to buy from you in the future. Eight percent of existing customers can generate up to 40 percent of your company’s total turnover.
Business intelligence can filter and collect data from repeat customers. Based on the data you collect, you can easily develop strategies to encourage existing customers to make repeat purchases. Business intelligence helps entrepreneurs deliver a data-driven customer experience that helps them stay competitive in the business world.
3. Better Customer Insights
Customers are less receptive to what you want to sell them. They change with market dynamics and want solutions to their problems. The journey from initial interest in a product or service to the moment of purchase has changed significantly in recent years. Simply put, customer engagement is more important than promotional activities.
The demand for integrated business intelligence tools is growing. Tools such as CRM help users understand how customers interact with them in real time. CRM software allows users to find the best way to reach customers based on accurate data.
CRM solutions are important tools for gathering the customer information needed for a business to adapt to the new era of the customer journey.
In the previous chapters we have already stressed the need to collect data from all parts of the business, including
- Customer service
- Product development
In this way, business intelligence can be used to create a more comprehensive customer profile based on their interactions with the company and convert them into paying customers.
Business intelligence helps companies improve their understanding of their customers so they can take steps to improve the customer experience. Today, every business aims to achieve the highest possible levels of customer satisfaction and loyalty.
Business intelligence helps you connect all customer touch points and instantly access individual customer feedback, current service issues, purchase history and current position in the sales cycle.
With so much detailed data at your fingertips, segmenting customers by their journey is easy. Based on this data, you can develop customized customer service strategies for different customer groups. This way, business owners can best allocate resources to achieve growth targets while retaining their current customer base.
4. Increased Productivity
Business intelligence can help businesses:
- Eliminate bottlenecks
- Streamline business processes
- Automate daily operations
- More organized
By successfully implementing business intelligence, companies can provide better customer service and make more productive use of sales staff time. Business data efficiency is improved at the executive level with automated reports and intuitive dashboards. Track all contacts and transaction information with just a few clicks.
By aggregating data, customer data is available to senior management from any device via the cloud, reducing management time. Employees on the move no longer need to call the office for information. Simply enter daily updates into the app and all information will be up-to-date, without additional manual work, ensuring enterprise data integration.
5. Better ROI
One consequence of the above is an improved return on investment for the company. ROI is a priority for all businesses as they can quickly focus on achieving greater revenue and growth. CRM systems with integrated business intelligence help businesses improve their day-to-day operations.These includes
- Sales effectiveness
- Conversion rate of closed sales
- Customer experience
These systems help businesses analyze large amounts of data without spending a lot of time and help them develop future growth strategies. With the insight and discipline provided by business intelligence software, companies can easily use the improved information to drive day-to-day sales and customer service. They can also avoid unnecessary assumptions and biases that typically lead businesses down the wrong path.
6. Planning A Better Future For Business
By understanding consumer buying behavior, companies can develop a plan based on a comparison of purchase history and business intelligence tool prediction. Not only do they know their customers better, but they also make the best use of their resources.
7. Turn Data Into Actionable Insights
Today, big data played a big role in understanding how consumers think, search for information, buy and move. The pace of data creation will accelerate even more in the future. The main reason for this is the rise of social media channels. The number of posts published, photos and videos uploaded, tweets sent, etc. will increase the flow of data in the digital world.
The company that takes the first step and integrates its official social media channel with business intelligence software will benefit from these growing trends, stay connected with its customers and gain an edge in customer service.
Business intelligence allows you to make sense of these petabytes of data. The data collected can be easily transformed into useful insights that give businesses the competitive advantage they need.
It is a myth that business intelligence is so expensive that only large companies can use it. This is not true. Today, business intelligence solution providers are working with small and medium-sized businesses to enable them to harness the power of business intelligence. BI is more accessible to SMEs today than ever before.