OR WHAT CAN STATISTICS DO FOR MY BUSINESS?
'Data is the new oil' but just like oil it needs refining to be useful.
Analysing data can uncover the factors that are driving your sales and measure the effectiveness of marketing or promotional activity. It ensures that your business doesn't waste money on strategies which aren't cost effective.
Regression can establish a correlation between different variables, for instance it can show how price changes affect your sales.
A type of regression called Logistic Regression can tell you whether an event is likely to happen, such as whether a particular customers is likely to respond to a -marketing email by making a purchase.
Cohort Analysis breaks customers into groups dependent on when they started buying from your business, or subscribing to a service, and looks at their behaviour over time. So, for example, you would be able to understand how new customers behave compared to more established customers.
Survival Analysis indicates when an event is likely to occur, for instance when a customer is likely to terminate a subscription service.
Clustering customers who are similar in some way is essential to target them in a cost effective way.
Testing usually involves pitting one scenario against another, such as showing different customers two different images of a product and seeing whether there is a difference in converstion. It's crucial to determine whether that difference is statistically significant or could just be down to chance.
You do not need exotic or expensive software to carry out most of these analyses. In most cases, using advanced Excel will be enough. SQL (Structured Query Language) can be used to query large datasets where Excel breaks down because of the number of rows. I have extensive experience using both Excel and SQL to perform statistical analysis.
Data analysis can boost revenue and decrease costs by allowing you to target more effectively. Please get in touch for a chat about analytics can help your business succeed.