Tips on how to use data and technology to generate ROI
Collecting data and using it to benefit a business has been long appreciated in the corporate industry. The data provides insights and helps the employers make better and more informed decisions, ultimately creating ROI (Return on Investment). But still, statistically, 65 % of executives hesitate using data and technology as they prefer sticking to the traditional ways of business.
This guide will discuss tips on using data and technology to generate ROI.
Using data to generate ROI
Analyzing the contenders:
Healthy competition is always the main essence of growth. By collecting relevant data, you can quickly analyze the market patterns, what tactic your competitive brands are using, and what equivalent strategies you can implement to enhance your growth. Your contenders and you share the same target audience, so, needless to say, what works for them may work well for you.
The benefit of getting this breakdown is that you could save a lot of experimentation costs and immediately implement proven methods. You can improvise and avoid mistakes that they have possibly made. Since you spend money in ways that are already proven to be effective, which helps you maximize ROI.
It is never recommended to copy someone’s idea but working innovatively around the concept is innocuous and inoffensive.
A good data analysis would yield quality automation. The data you collect using the best possible methods can be fed directly to your analytics software to help you track KPIs (key performance indicators).
You can effortlessly identify what tactics perform better for your business and productivity. It becomes an informed decision about what strategies are worth investing in and which ones are not yielding the results. You save the cost spent on wrong techniques and generate more ROI using only the effective plans for your business.
Quality and product supervision:
Consumers nowadays are brilliant and constantly active on social media and other online platforms. They often share their experiences, likes, and dislikes for a product or service they utilized. An employer can realize where they lag and what improvements must be made so that the consumers don’t encounter the same issue. You can easily avoid making the exact mistake regarding your product or service and disappointing buyers.
Also, collecting relevant data on similar products in the market can help you understand the market’s different qualities and prices. It becomes easy to do a cost analysis and decide what quality of the product you want to deliver.
You stand a chance to either overshine your product quality or make a smart move by continuing to make something that’s already being sold in the market.
The term is self-explanatory; to increase the ROI, the easiest move is to raise the price of your product or services. Now let’s understand this deeply. Pricing is the most critical aspect of sales, and you must avoid being overpriced. Overpricing could cause you to lose a large portion of your consumers, especially if there are many similar products available for a comparatively low price.
The wisest move in such a case is to have a detailed analysis of the standard market price, competitor pricing, and how much a buyer is willing to spend on that particular utility.
After a thoughtful decision is made using the data, you can plan the pricing strategies accordingly, make the most out of a single sale, and maintain a balance of overpricing and under-pricing.
Using technology to generate ROI
Possibilities that save cost:
Having positive results on investment in a business is an excellent indication of sound business success, and digital technologies have ascertained to be a great help over the past decade. Technology has completely transformed the finance structure of any business and significantly influenced its functions.
Any business can gain a huge ROI if relevant data and market analysis back all of its campaigns. This analysis would include consumers globally, customer behavior towards a product or service, target audience, customer engagement, consumer retention, product performance analysis, and predictive analysis.
Successful data analysis gives you insights into meaningful market aspects that are often ignored. Such data improves the cost-effectiveness of digital marketing and enables you to implement the most feasible ways to function ahead.
Let’s understand how any business can use a combination of data and technology to generate ROI with an example.
A renowned brand, Nike, reported an issue with e-commerce. Unlike many products, people prefer buying shoes at a physical store rather than online. Since comfort, size, fit, and look may vary, it is always preferred to try them on before buying. So, Nike used this data and worked around it. A quick type of “jo” in the search bar would pop out results for “Air Jordan,” with a picture of the most popular product and a “view all” link at the bottom. Clicking on the product page shows a menu to filter by colors, size, gender, price. Soon you will end up finding the perfect shoes you are looking for.
Workforce management and practices:
A business isn’t just about how it works after the product or service is made. The company’s initial stage or core (workforce) is equally essential and involves a considerable cost of obtaining and retaining.
An HR professional must collect the data about the following and use this information to analyze the situation and search for achievable solutions.
- The Number of hires each month
- The average time involved in interviewing each candidate
- Cost per hire in your organization
- Probation percentage
- Inbound hire percentage
- Offer acceptance rate
Now that you hold a firm idea of all the data relevant to the HR managers. Let’s discuss how HR can use this data and technology to generate ROI:
- Using feasible hiring methods to hire better candidates at low cost
- Practice better onboarding and offboarding
- Build a strong workforce by making correct hiring decisions
- Investing money on beneficial sourcing platforms
- Using upskilling and retention methods
An HR can save significant time and cost if they implement modern hiring techniques; one recommendation would be Jobma. Jobma is among the most efficient video interviewing software, trusted across the globe for the budget friendly and seamless recruiting they provide. This software is a combination of both one-way interviews and live video interviews. The recruiter doesn’t spend extra time screening each candidate personally at the initial stage. Further, Jobma offers live video interviews at a very competitive price. Any recruiter can explore free trials and request a free demo to better understand the services they deliver.
Long term business innovation:
Data analysis means collecting the data (of the previous and ongoing business plans and strategies), getting visions, and planning future tactics accordingly. So, we can say that data analysis benefits the organization to generate ROI both in the short term and long run. The planning around data can be by keeping three steps in mind.
1) Set targets:
Data analysis gives you a clear understanding of your strengths and weaknesses and what improvements you need to make. An employee can make an educated plan and set targets to deliver better products and services to retain the existing consumers and attract maximum potential audience.
2) Analyzing inputs and outputs:
For the successful execution of the plans, the next step would be to measure the inputs and outputs. This means how much investment is required and what ROI your business can expect. This analysis would prepare your future and help you plan the business strategies accordingly.
3) Understanding the market scenario, challenges, and process:
After the above two stages, what procedure to follow comes next. You understand the market trends and the challenges the business face in generating ROI, so you must plan the techniques to avoid any such disturbance in the smooth functioning.
Wrapping it up:
Data analysis is necessary for any business to improve, make it profitable and prioritize their customer needs. Data analysis lets you identify minor shortcomings and the scope of improvement. You require a detailed data analysis to implement a strategy that effectively increases the ROI.