Business analytics provides a tool that business owners can use to create sustainable businesses. By looking at past trends and data, business owners learn about the things that help to grow the business. Creative companies (artists, photographers, writers, etc.) may believe that this tool remains out of reach. However, companies of every size benefit from looking closely at data.
Business analytics helps creative businesses of all sizes. Photo by Austin Distel on Unsplash
Business Analytics for Creative Companies
Creative companies can use business analytics to make decisions. At a minimum, business owners look at past data to identify trends and make decisions. So, whether your company involves selling a product or providing a service, you likely have a good deal of information handy that proves useful.
Below we provide a basic overview of business analytics for creative companies.
What Information Should Creative Companies Explore?
Business analytics shows its power when you identify key performance indicators (KPIs). Accordingly, KPIs give insight into different parts of your business. Therefore, when analyzing your business, start by identifying which KPIs you will track.
Some examples of KPIs:
- Lifetime Customer Value – how much revenue the company earns from a given customer.
- Cost Per Acquisition – how much money it takes to get a new customer.
- Basic Accounting Numbers – this includes classics such as profit and loss, income statement, and more.
How Do Creative Companies Use Business Analytics?
Different companies use business analytics differently depending upon their needs. However, any company should seek insights that help to maximize the KPIs that the company owners value.
The key point: creative companies can use analytics on day one. If you want to get more customers, you look at your data to find out where good customers come from. If you want to build a brand, you can explore what actions lead to more site traffic or social media followers. You probably already use some type of business analytics to understand what goods/services people like and which they don’t.
Regardless, running a business involves understanding facts. Analytics helps to put those facts to work. We have seen how it helps our most successful clients.
