Business intelligence (BI) is a set of technologies, tools, and operations that work together to draw out vital data about a company.
BI also processes the data collected to create valuable insights and present them in an easily digestible, graphical form.
Business intelligence is crucial in today’s data-driven world, where 90% of the data online has been created only in the past couple of years.
Insights from business intelligence can be used to measure staff performance and see how well sales in a company are going.
Some tools like Jobber allow service-based businesses, including lawn care and plumbing providers, to run their business from the field through field service reporting.
It’s no wonder why an increasing number of industries are already using BI software.
After all, knowledge is power, and business intelligence apps can help companies gain the most crucial data required to perform the advanced analysis necessary for optimizing business strategy.
The problem is that many small businesses still sort through data manually using spreadsheets.
They can’t drill down and manipulate data, unlike more established companies with BI tools.
This article will show why all small businesses should also start using BI software solutions. Read on to learn more.
BI Tools Allow Small Businesses to Decide Based on Facts
Deciding based on what you think will happen rather than considering trends and facts is one of the biggest mistakes you can make as a business owner or manager.
Unfortunately, it’s the case for many small businesses, especially startups.
Rather than going with your gut feeling or assuming, business intelligence tools can help business owners and managers make data-driven decisions.
Benefits of more informed business decisions include:
- Reduced risk: The use of BI solutions means that you can make decisions that reduce the level of risk. It’s especially true when deciding which products or services to market more to your audience and which to discontinue.
- Competitive edge: Another benefit that data-driven decisions bring is a competitive edge. It makes sense because business owners and managers build out a strategy and identify new opportunities with supportive data. It basically means that companies have a full scope of what’s happening in their operations, allowing them to optimize their campaigns.
BI Tools Help Small Businesses Save Time When Making Decisions
Besides helping small businesses make more informed decisions, BI tools also help them make decisions quicker, saving them valuable time.
It’s estimated that startup companies worldwide spend 146 days on admin tasks each year. That’s a sheer amount of work that’s eating a significant amount of time.
That’s why for modern businesses, the ability to access up-to-date data quickly is crucial.
The good news is that business intelligence software allows organizations to access accurate information anytime.
All they need to do is to touch a button on their computers or mobile devices.
With a BI app, business owners, managers, and workers can also use customized reports or templates to monitor key performance indicators (KPIs) through various data sources, including operations, sales, and financial data.
BI solutions generate reports in real-time, which is beneficial if the company has to make an important decision right away.
It also helps that information is presented using easy-to-read and understandable visualizations, such as tables, graphs, and charts.
Over time, the ability to access data faster can impact other areas, such as a sales team’s productivity.
BI Tools Enable Small Businesses to Understand Customers Better
It’s not always easy to understand what customers are looking for exactly when you don’t have the right tools.
With business intelligence software, companies can collect customer data, such as demographics, likes, and dislikes, and factors influencing customer purchasing decisions.
Using the data that BI solutions provide, businesses can understand their target market’s needs more.
As a result, companies can develop or offer products and services that precisely meet customer needs.
By providing the correct service or product to the right individuals at the right time, businesses can enjoy greater brand recognition and loyalty. They can also increase customer satisfaction.
BI Tools Increase the Revenue of Small Businesses
For businesses, regardless of size, increasing revenue is a vital goal. That’s why the sales team is one of a company’s most valuable assets.
However, without the right resources, even the best salespeople can have trouble performing.
BI apps can be an invaluable tool for the salespeople of any company.
They can provide up-to-the-minute information that could make or break a sale, such as product improvements, customer preferences, current sales trends, and even competitor campaigns.
When organizations are watching their competitors, listening to their customers’ pain points, and improving their operations to address current issues, revenue is likely to increase.
BI Tools Help Small Businesses Measure Marketing Campaign Effectiveness
Companies put significant money and time into creating and implementing marketing campaigns.
Of course, they want their efforts to pay off. It’s especially true for small businesses with a limited budget.
However, it’s not always clear if a specific campaign is actually living up to expectations.
Business intelligence systems will help businesses see meaningful data on campaign performance.
It’s probably the most important reason for small businesses to start using BI software.
The use of business intelligence is an excellent opportunity to spot areas where things aren’t performing as well as hoped.
Companies can use these insights to make the necessary changes and improve marketing strategies for the better.
With BI solutions, you can focus on campaigns that deliver return on investment (ROI) and quickly cease those that don’t show positive results.
Final Thoughts
Many companies strive to gain greater and better control over the significant amount of information available to them.
It makes sense because leveraging data allows any company to optimize overall performance and get ahead of competitors.
The size of your business, no matter how small it is, shouldn’t stop you from aiming to achieve the same level of success.
It’s time to start learning how to improve your organization’s performance and decision-making abilities using business intelligence tools.