Eugene Lebedev is a Power BI consultant by trade. Before he started Versich in 2021, he developed Power BI reports for Autodesk. His Power BI dashboards were utilized by Autodesk's VPs of Finance and C-suite executives. At Versich, Eugene has created dashboards for Google, Teleperformance, Delta Airlines, and over 200 clients globally.
It's obvious that the absence of data is not an issue for the majority of businesses and government organizations. Instead, they often have an excess of information collected from users, which can work against making informed decisions by stakeholders and business owners. Thus, the important question arises: “What steps can one take to improve data analysis?” We’re here to clarify that for you; so stay tuned!
To be clear, organizations require effective data analysis that truly contributes to their business growth. With the right data analytics processes, tools, and metrics, what once seemed like an overwhelming amount of data transforms into straightforward, actionable insights, eliminating any loose ends.
As a business owner, it's crucial to grasp the key analytical factors that can impact your operations. Unfortunately, many companies are unaware of how to fully leverage the value of their data analysis, which is a common oversight.
But there's no need to worry, as this blog will provide you with best practices for gaining meaningful insights from your data analysis.
Five Steps and the Questions You Should Consider
Step 1: Define Your Objectives
Kick off by setting clear objectives and goals; every organization is distinct and has its own aims. One business might seek to expand its audience, while another may focus on gaining more customers and likes. Therefore, start by defining your objectives. They provide context to your data. For instance, is it beneficial or detrimental to acquire 200 new customers in a month? That depends on your goal. If your target is 300 new customers per month, it’s disappointing. However, if you aim for 100, it’s fantastic. Do you grasp the concept?
Here are some questions you might consider to set your goals:
Can I express my objectives in financial terms, such as revenue or profit targets?
How can I further break down my business target, e.g., by setting monthly goals for each team or salesperson?
Step 2: Determine What to Measure
Simply defining goals is not sufficient if you're unclear on what and how to measure. It's vital to comprehend both measuring processes to understand your business's position.
How to measure? Consider which of your initiatives contribute to achieving your target. For example, if your goal is to enhance your revenue, one approach could be to explore additional sales channels. Thus, it becomes essential to track the growth of this channel and its share in overall sales.
Next, you must identify the technical methods for calculating your revenue. Is it merely the sum of a column named [Revenue] in your dataset, or does it involve multiple columns across different datasets? Grasping the mathematics behind the numbers can significantly enhance your understanding of your business.
Lastly, measuring results against past performance adds context to your numbers, helping clarify whether you're meeting your goals.
Step 3: Understand Your Data
Once your questions are defined and measurement priorities are established, it’s time to familiarize yourself with your data. To meet your objectives and gauge your growth, you need to identify the data that yields the desired outcomes.
For example, to track your revenue growth, analyze data relevant to your sales and marketing figures. Other data, such as feedback, ratings, and employee performance, may be less relevant if your focus is on profits.
Consider asking yourself:
Which data sources hold the information needed to monitor my progress toward targets?
What are the formulas involved in calculating key performance indicators (KPIs)?
Step 4: Visualize Data
Now that you've pinpointed the data needed for analysis, it's time to delve deeper into your data assessment. Begin by manipulating your data in various ways, such as creating graphs, heatmaps, bar charts, time series, and geo-maps.
During this phase, data analysis tools like Tableau, Power BI, Domo, and Google Data Studio assist in clarifying even the smallest details using engaging visuals and dashboards.
During this step, consider asking yourself:
Which graphs depict my data's story most clearly?
Do I genuinely understand what this graph conveys?
Are there any graphs on my dashboard that are irrelevant and could be removed? It’s crucial to retain only the visualizations that support your narrative.
What is the most scalable product or service in my offering?
Step 5: Interpret Your Results
After performing your data analysis and researching for gaps, it’s time to interpret your findings. As you review your results, you will clearly see the breadth of your objectives and outcomes. This will assist you in tracking your progress as you repeat these five steps.
While interpreting the results of your data, consider these questions:
Does the data respond to my initial inquiry? If so, how?
What factors might influence the growth or decline of the metrics I monitor? How can I impact those factors?
Are there any limitations to my conclusions or angles I haven’t considered?
By following these steps, you should gain a clearer understanding of effective data analysis practices that are truly valuable for your business.
Final Thoughts
Don’t fall into the trap of neglecting your analytics. As a business owner or stakeholder, it's essential to have a solid grasp of data analytics practices to accurately assess your growth. While you do not need to be technically savvy regarding tools and methods, understanding the valuable insights and data that can genuinely elevate your business is crucial.
“What isn’t measured can’t be managed.”
This statement holds a lot of truth today; without analytics, you could be shooting in the dark. Therefore, make analytics a core aspect of your business, and you can achieve this by collaborating with a highly efficient BI agency like Versich.
At Versich, we provide top-tier value-based analytic solutions across finance, marketing, and web analytics. With our expert team of qualified and experienced BI professionals, your tracking of business metrics and value-driven analytics will never be overlooked.
