Business analytics is the watchword of the day, as the creation of data at unprecedented rates creates ever-expanding opportunities for companies to appeal to customers in new ways. Smart phones, smart speakers, smart locks, smart appliances, smart cars — all of it is generating truly mind-boggling amounts of data each day, and while it might be expensive to implement the tools you need to parse this data, it’s worth it for the money you can wring out of it.
Not only will business analytics help you discover new ways to tailor your offerings and marketing, drawing in new customers and making more sales to the old, but it can also help you cut operational costs. Data analytics can help you reduce turnover and fleet costs while enhancing productivity, improving data security, and even lowering overhead. Here’s how.
Keep Your Employees Happy
Employee turnover is one of the biggest operating costs most businesses have. It can cost your company $15,000 every time a worker voluntarily leaves. So it stands to reason that keeping more employees with the company longer can reduce these potentially astronomical costs.
Achieving turnover cost reduction with data analytics works in multiple ways. You can analyze your most loyal employees’ qualifications and employment histories and use the resulting data to look not just for candidates with the right degrees and experience, but those who are most likely to be happy with the company and most likely to want to remain with the company for a longer tenure.
You can also collect data on your existing employees to find out what makes them feel satisfied or dissatisfied with their jobs and the company. Anonymous surveys give employees the opportunity to express their needs and gripes as well as explain what they like about working for your company. You can use this data to improve your conditions and culture in ways that will make employees feel more engaged — and engaged employees are more productive. But while you can use time-tracking and other productivity tools to improve productivity, be careful about using these to micromanage individual employees. Instead, focus on addressing patterns of behavior that occur across your whole workforce.
Take Better Care of the Fleet
Fleet maintenance can be a huge expense, and the more vehicles, the bigger the expense. Fleet tracking devices let you analyze routes for delays, road work, and other factors that could influence costs, allowing you to tweak your routes and enjoy cost savings by using less fuel or even just keeping drivers more alert so they can work faster with fewer accidents. You can use vehicle tracking devices to monitor driver speed and location, and even track metrics like how often vehicles are maintenanced. Use safe driving incentives to keep insurance low and reduce repairs and other costs associated with traffic accidents and even moving violations.
Cyber security has never been more important, especially since many customers generate a lot of what’s known as dark data — data that your company obtains through normal customer interactions, but doesn’t use. This data can include the contents of customer service logs and emails, phone recordings of conversations with customers, the data customers enter into their online profiles, and more. Much of this data may as yet remain unclassified in your system, and some of it could present a security hazard. Hackers can manipulate this unclassified data to enter your system through the backdoor, so to speak. A security breach of this kind could cost an average of $8.19 million, so you simply can’t afford not to prevent them.
Lower Overhead Costs
How much does your company spend on electricity? What about HVAC? How much money gets tied up in inventory that then doesn’t move as fast as you would have hoped? You can lower all these costs using data analytics. Smart systems can track energy usage and generate audits that can help you improve efficiency and further reduce costs. Set your smart system to automatically turn the lights off when no one is in the office, adjust the temperature according to peak hours, and even monitor inventory levels and movement patterns to eliminate excess inventory from the warehouse.
Business analytics can help you cut costs in every aspect of your business. It’s well worth the implementation costs, and will continue to pay dividends for years to come.