Does data analysis affect ROI?
2021-05-24 BI Market

Does data analysis affect ROI?

When dealing with business challenges, the best solutions should be used. One of them is data analysis. By specifying a particular problem, accessing relevant data and using modern analytics techniques, you can gain many benefits. Such actions improve risk management, work optimization and the use of available resources. In addition, in the business world, it is very important to track the return on investment (ROI). Thanks to this indicator, companies can determine exactly how effective their operations are. So, let's see how Power BI data analysis can help in this aspect.

What do you need to know about ROI?

ROI (return of investment) determines the level of profitability of the company's operations. In short, ROI shows what the return on invested money is. It may concern many areas of the company's functioning and various departments.

How does proper data analysis affect ROI?

  • Discovering profitable business opportunities

By analysing trends and measuring specific variables, companies are able to discover market niches and anticipate threats before they appear. This is very important especially for those companies that operate in a dynamic and highly volatile environment. Basing business decisions on hard data results in an increase in the company's profits, and thus has a positive impact on ROI.

  • Employee management

One of the biggest costs incurred by companies is the salaries of their employees. Efficient use of employee resources can be tracked by identifying periods of intensive work. In addition, it is very useful to measure how the cost of each employee is compared to the profits it generates for the company. Thanks to modern systems for data analysis, such as Power BI, analysing the quality and effectiveness of the HR department is much simpler, and the appropriate allocation of employees and responsibilities are also reflected in ROI.

  • Commodity management

The analysis of the data also brings a number of benefits to companies operating in the trade sector. It allows obtaining a lot of information about the inventory, market demand for a given type of goods or sales volume in a given region. Thanks to the possibility of data sharing in Power BI, all persons involved in the project have access to information. Such a solution significantly improves work efficiency and increases its effectiveness.

  • Optimization of marketing campaigns

One of the challenges of marketing is to reach a selected sector of the market when it is most willing to use a given service/goods. This can be done by measuring data collected internally (e.g. from an online store) as well as externally (e.g. reactions of potential customers in social media). Such a strategy allows you to better understand your client and optimally match your advertising message and communication channels. All this will significantly help you to optimize your marketing investments. For more information on how to improve your marketing activities through data analysis, see our previous article.

  • Efficient use of the budget

After collecting data from different sources in one panel (Power BI gives this possibility), you can precisely determine where to increase and reduce expenses. But that's not all - advanced analytical methods will also help to determine how a change in the budget in a given area (e.g. advertising in social media) will affect the company's revenues and the effectiveness of other advertising channels. Thanks to this, you do not have to rely on speculation, and employees from different departments can focus on developing the most effective solutions.

Do you want to increase ROI? Analyse data with Power BI!

Universal access to a large amount of data gives companies practically unlimited possibilities to use it. Their proper analysis and drawing the correct business conclusions effectively increase the profitability of companies. Of course, in order for such an analysis to be practical, it is necessary to use good tools. One of them is Power BI, which was created especially for business analytics. It helps to effectively visualize the collected data, so you can better extract valuable information.