Businesses that use visual analytics can save up to 40% in time spent on reporting and analysis, allowing them to focus on more strategic initiatives and driving growth during an economic slowdown.
How Can Visual Analytics & Reporting Help Survive An Economic Slowdown?
1. Supply Chain Visibility
Here are some ways in which visual analytics and reporting can help during an economic slowdown:
- Identifying bottlenecks: Help businesses identify bottlenecks in their supply chain processes by providing real-time visibility into inventory levels, order processing times, and shipping times. This information can help companies to make data-driven decisions to optimize their supply chain operations and reduce costs.
- Predicting demand: Use Business Intelligence technologies to predict product demand based on historical data, market trends, and customer behavior. The companies can adjust their supply chain operations accordingly to avoid stockouts or overstocking.
- Tracking supplier performance: Track the performance of their suppliers in real-time. Businesses can identify which suppliers are meeting their performance targets and which need improvement.
- Optimizing transportation: Optimize transportation routes to reduce costs and improve delivery times. This information can help enterprises make data-driven decisions on which transportation routes to use based on distance, cost, and delivery time.
Sococo's Marketing and Sales Funnel Dashboard helps it withstand an economic crunch by providing real-time insights into its sales and marketing funnels. By tracking all the KPIs in one place, it can quickly identify weak points and inefficiencies in the funnel, which helps improve its conversion rates and grow its business.
2. Marketing/Customer Acquisition
A study by Nielsen found that companies that continue to invest in advertising and customer acquisition during an economic downturn can positively impact their brand equity. Specifically, companies that maintained or increased their advertising spending during the 2008 financial crisis experienced a 9% increase in brand equity compared to those that decreased their spending. The below diagram sums it up.
Using Grow’s Business Intelligence data visualization tools, you can quickly recognize customer drop-off points or analyze which campaigns are delivering the highest engagement. You can focus on a more targeted market and reach potential consumers more effectively by illuminating data on each customer phase and their life cycle. Our marketing dashboards are nothing short of a miracle.
3. Monitor Financial Performance
By creating dashboards that provide real-time information on revenue, expenses, and cash flow through bar charts and funnels can help businesses to keep track of their financial performance. They can also identify areas where they need to cut costs or invest more resources.
Grow’s BI dashboard software standard templates fuel the overall monitoring process by quickly identifying trends, anomalies, and patterns in their financial data. For example, Younique Foundation developed the advanced finance and admin Dashboard that improved their outreach and significantly increased their total donations.
4. Forecasting and Scenario Planning
According to a survey by Deloitte, 88% of companies that used scenario planning during the 2008-2009 financial crisis reported that it helped them navigate the crisis.
Grow’s Full-Stack Business Intelligence software can forecast future revenue, expenses, and cash flow, as well as perform scenario planning to determine the potential impact of different economic conditions on their business. It focuses all your critical metrics in one place that makes proactive decisions to mitigate risks and take advantage of opportunities.
5. Identify Trends and Market Opportunities
Identifying trends and market opportunities during economic slowdowns can be challenging. However, several statistical measures can be used to gain insights into the current market conditions and identify potential opportunities. Here are some statistics that can be helpful in this regard:
- Consumer confidence index: This index measures how confident consumers are about the economy and their personal financial situation. A decline in the consumer confidence index indicates that consumers are less likely to spend money, which can harm the economy. However, it can also indicate potential opportunities where consumers are still willing to spend money, such as essential goods and services.
- Gross Domestic Product (GDP): GDP is a measure of the total value of goods and services produced in an economy. A decline in GDP can indicate an economic slowdown. However, it can also highlight areas with potential for growth, such as industries still performing well despite the overall economic downturn.
- Unemployment rate: The unemployment rate is the percentage of the unemployed labor force. During an economic slowdown, unemployment increases as businesses lay off workers. However, it can also highlight areas with potential for growth, such as industries still hiring despite the overall economic downturn.
- Sales data: Analyzing sales data can provide insights into which products or services are still in demand during an economic slowdown. For example, essential goods such as groceries and household items will likely continue to sell well, while luxury items may experience a decline in sales.
- Online search trends: Monitoring online search trends can help identify potential growth areas. For example, increased online searches for home fitness equipment may indicate a shift towards home-based fitness during an economic slowdown.
It's important to note that these statistics should not be used in isolation but should be considered as part of a broader analysis of the current market conditions.
Grow’s Business Intelligence data visualization tools helped Socco track the customer journey with an innovative sales dashboard that helps them control marketing spend, accountability, and growth. Read Grow.com Reviews & Product Details G2 to learn more about our plans.
Conclusion
An economic slowdown is when one wrong decision can take you and your business back several years.
Grow's No-Code Business Intelligence, an integrated BI software that combines analytics, reporting, and data exploration, lets you maximize your business. Also, showing trends and other relevant data-based insights as quickly and clearly as possible helps companies to develop strategies and future-proof plans.
With our BI dashboard software, you can gather and analyze data on market trends, consumer behavior, and industry performance to gain a deeper understanding of the microeconomic forces at play. And the best part? You don't need to be a data scientist to use one!
If you're ready to take your microeconomic analysis to the next level, don't miss out on our article that explores how to ride out microeconomics with a BI tool.
So why are you waiting? Let’s grow with Grow and stay prepared for economic adversities with our advanced Full-Stack Business Intelligence software.
