Why Business Stats Matter

There are a lot of different statistics that your company will need to keep track of and a lot of data needing analytics to get the best numbers and know-how to use them to benefit your business the most. Looking at multiple variables within your company and in the market can give you a better picture of where you stand, what you can do to improve and how to set your goals.

Performance Evaluations

One of the most common uses of business statistics is to evaluate performance. These evaluations can be on personal metrics, such as how much output you average and how many tardies you have. They can also be on departmental averages, the company's metrics and the overall market performance related to your company's sales. While some companies use these numbers to determine percentage wages and evaluate personnel for promotions, you can also use them to make personal efficiency and improvement goals.

Market Research

Researching market statistics such as buying trends for your target demographic, the demand for your products and services, and even how the competition is performing will help you get a better picture of what to expect in the future and how to prepare for it. This research is also beneficial for writing or updating a business plan, convincing underwriters to lend your company money, and developing new products and services. For instance, a business plan is a crucial part of applying for traditional business loans and soliciting investors because it shows where you want to grow, how much funding you need, and where to spend that money best to boost your company.

Finding Customers

One of the essential marketing tools is the "ideal customer" model. This model is a visualization of the type of person to want your products and services and has a lot to do with the demographics you cater to and those highlighted in your market research. For instance, if you sell custom pet products, your ideal customer is more likely to be a pet parent with the income and desire necessary to customize their space instead of someone allergic to or dislikes animals. Once you know your ideal customer, you can use market data to pinpoint the best places to advertise to that demographic, which messages to use, and even which products to highlight.

Goal Planning

Using statistics in goal planning can help you make more realistic goals with easily accomplished steps. You can also use statistics to see where your company needs improvement and set goals to target those areas for growth. For instance, if your goal is to sell a thousand units each month, but the market statistics show a depressed demand for those products, then you will be unable to meet the benchmarks you have set without making changes to drive up demand.

Product Development

Market research is one of the best ways to determine where your product development efforts should be concentrated. One way to do this is to gather data from a focus group, such as which product colors, features or designs are most appealing and which units are in the highest demand. You want to examine how your current products compete with similar items, which purchases are trending, and what changes you can make for a more significant market share.

Competition Reports

Knowing where your competition stands is the best way to judge your current success and predict future pathways. If you and your competition are both struggling, then it is likely that you are facing a trend in the market and should look to what is causing the downturns. If you are lagging where your competition is succeeding, you will want to see what they are doing correctly and make changes to capitalize on that data.

The correct statistics in business can help you investigate your current market and those you are interested in entering, improve your products and services, and market to the right customers. These stats help give you a snapshot of your current market standing, predictions for future performance and much more.