Leveraging data to improve business performance & drive growth

In today’s data-driven world, small businesses and sole traders have access to more data than ever before. From financial forecasts to marketing metrics, the information at your fingertips can transform how you run your business.

As handy as that can be, however, pinpointing the data that will improve your performance, attract more customers, and drive sustainable growth is sometimes difficult. To know how to apply useful data to the real world, you’ve got to know where to find it. 

With this in mind, our experts are here to provide practical tips on how to leverage this information to boost your business performance. Let’s start with the different types of business analytics you might come across, and how you might track them. 

Types of business analytics & how to track them

Small businesses and sole traders use key metrics across a range of areas to assess and analyse where they stand. These areas include financial, customer, sales and marketing data. 

By regularly tracking these metrics and understanding their implications, they can identify opportunities to refine long-term strategies and achieve their goals faster. 

Financial data

One of the key types of analytical metrics that businesses track is financial. These metrics may include revenue, profit margins, expenses, and cash flow, although there are many other potential areas. 

Monitoring financial-oriented metrics is essential for understanding a business’s economic performance and making fully informed decisions as a result. This is true not just for the short-term health of a company but its long-term future as well. 

Customer data 

Allied to this, customer data is invaluable for building stronger relationships and driving business growth. Tracking demographics like age, location, and purchasing habits allows businesses to tailor marketing strategies to better meet customer needs. 

Marketing & website data

In modern business, marketing is key to attracting and retaining customers. Luckily, now more than ever, you’re able to see how, when and why customers are reaching your site.  

By tracking metrics such as website traffic, conversion rates, and social media engagement, small businesses can measure how campaigns attract and retain customers. 

Sales data

Sales metrics like growth rates, average transaction value (ATV), and channel performance give you a clear view of your business’s performance. They can also highlight new growth opportunities.

Small businesses can use this data to identify trends, optimise their selling strategies, and focus on the most profitable platforms.

Internal operational data

Another key business metric to analyse and track is internal operational data. This can cover everything from inventory turnover, to employee productivity and training needs.  

Not only will tracking these metrics help to improve service quality - it will also help to increase the level of operational efficiency company-wide. 

How to utilise this data for business growth 

So now we know what some of the key metrics involved in tracking and analysing business performance are, the next step is understanding how to turn this knowledge into actionable strategies for growth. 

Let’s explore some of the best ways to use financial, customer, marketing, sales, and operational data to make smarter business decisions.

1) Analyse your financials to maximise ROI

Perhaps the most fundamental financial metric that businesses measure is revenue. This shows simply how much money a business is generating over specific periods, although equally important are profit margins, including gross, operating, and net, which reveal how much of your revenue turns into profit after accounting for costs. 

Meanwhile, keeping a close eye on expenses can allow you to identify areas for cost-saving or efficiency improvements. For instance, if overhead expenses are consistently high, exploring alternative suppliers or automating certain tasks might help.

The same is true for cash flow monitoring, which ensures your business maintains sufficient liquidity to cover operational needs and prepare for unexpected challenges.  By maintaining a positive cash flow, you can invest strategically in growth opportunities, such as hiring new staff or expanding your product lines.

Learn how QuickBooks can help you track financial metrics effortlessly here. 

2) Utilise customer data to grow your customer base

Growing your customer base is not always a straightforward undertaking, but it can be made easier by tracking metrics like customer acquisition costs (CAC) and customer lifetime value (CLV). 

Customer acquisition costs (CAC) will help you evaluate the efficiency of your marketing efforts by measuring the total cost of gaining a new customer. 

Similarly, customer lifetime value (CLV) provides insight into the revenue you can expect from a customer over their relationship with your business. This can help you to prioritise high-value customers. 

Retention rates are also important as they indicate customer loyalty and reveal areas where you can improve customer satisfaction and boost repeat business. After all, happier customers often translate into stronger relationships and repeat business.

3) Review marketing data to reach the right customers

There are a multitude of different marketing metrics that you can measure in order to assess whether you are on an upward curve. 

For instance, website traffic data reveals how many visitors engage with your site and how they behave, while conversion rates show how well your campaigns encourage visitors to take action. This will allow you to see which users are making a purchase or signing up for a service. 

In the process, you’ll be able to work out your Return on Investment (ROI), which will give you a comparison of the marketing and website costs to the revenue they generate. 

Of course, you also can’t afford to ignore social media in this day and age. Social media engagement metrics like likes, shares, and comments can also offer valuable feedback on how well your social media strategies resonate with your audience.

4) Use your sales data to maximise lead conversions

Sales metrics can provide clarity on your business's current performance and future potential. Metrics such as sales growth rates highlight trends over time, and, as a result you understand whether your business is expanding or facing challenges.

Average transaction value (ATV) is another valuable metric because it shows how much customers typically spend per purchase. With this information, you can develop strategies to upsell or cross-sell and increase revenue without acquiring new customers.

Analysing sales by channel, whether online, in-store, or through other avenues, also can allow you to identify the most profitable sales platforms. You can allocate resources to areas with the highest growth potential, and ensure your efforts are targeted for maximum impact.

5) Review operational data to improve internal efficiency

Operational internal data can cover everything from inventory turnover, to employee productivity and training needs.  But that’s a lot of data to make heads or tails of.

To process this more efficiently, you may want to segment your data by project, for example. Tracking project completion rates can ensure they are delivered on time and within budget. 

Then there’s the customer side. To know where you stand with the people who are purchasing from you, track response times and satisfaction scores, while measuring in a more general sense how strong your relationships are with the organisations you work with. 

Improving business performance through data: the verdict

Vast amounts of data can be overwhelming, but when used effectively it’s a powerful tool for driving growth and improving how you run your business. By focusing on the metrics that truly matter, you can gain a deeper understanding of your operational performance and market position.

Tracking the right business metrics will lead to better decisions, stronger strategies, and, ultimately, better results. 

And remember, you’re not alone. Tools like QuickBooks’ accounting software can make tracking and analysing this data simpler, leaving you with more time to focus on growing your business. 

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