5 Important Facts About Small Business Merchant Analytics
As the popularity of merchant analytics continues to grow in the SMB circuit, people are beginning to get wise about its power, what it does, and how to use it. Though there are lots of important things to know about merchant analytics, business owners in particular need to know five important (and sobering) truths about the use of merchant analytics. Contrary to what others may say, these five things are true – and will remain true for as long as analytics is around.
- Most business owners know the importance of having merchant analytics. As a community, the small business world can no longer ignore the importance of having analytics. In big business, major company revival experts have noted that having analytics is a key indicator that a business will be successful. In fact, a study performed by Baynote cited analytics as the top indicator that customers will be retained – and that it beat promotional values like free shipping, too!
- The most common form of business analytics used by small business owners also happens to be the most erroneous. Most business owners use spreadsheets to discover what to do with their company...and over 88% of spreadsheets have errors on them. Decisions made based on errors often won’t steer your company in the right direction. So, if you do the “DIY spreadsheet” analytics route, you may want to switch to a better software kit.
- People often pay attention to the wrong metrics. Studies also showed that business owners are more swayed by “vanity” metrics like Facebook likes than the actual reach of their message. This is very bad practice, since they may end up hurting their ad campaigns.
- And despite knowing the benefits, some merchants don’t care about measuring metrics at all. Around 73% of all businesses don’t even bother checking their email metrics. This means that they are seriously harming themselves when it comes to understanding what people react to, and what people want to see.
- Overall, this is a time where having the right analytics can make or break your company. Data will be growing around 44 times our current pace in the future, and that means that you can reap the rewards...should you choose to. However, in order to get the most out of your analytics, you need to start now.
Are you looking to improve your bottom line, but don’t want to use cheaply made analytics software? Call Red Payments to find out how we can help pair you with the right software kit for your industry.