Why Data Matters
Have you ever found yourself wondering if you should do something with the data you have on your customers, sales revenue, or marketing channels? Maybe it’s been on your “I’ll get around to it” list for months… or years. No judgment! We’ve all been there with tasks piling up faster than we can get through the to-do list. Or perhaps it hasn’t even been on your radar.
BUT…
If you’re not paying attention to your data, you’re leaving money on the table – often A LOT of money. Recent research has shown that data-driven small to medium size businesses are twice as likely to enjoy financial success compared to competitors, and their customer satisfaction scores are nearly double those of their less data-driven competitors. (“Data is the Differentiator”)
Even if you’re not a data or a numbers person, there’s a lot you can learn using simple tools and spending just a little bit of time investigating the information you already have. So where do you even begin? I’ll present a few ideas as starting points, and in subsequent articles, we’ll take a deeper dive into various metrics to explore depending on the type of business you have.
Start with What You Have
If you’re just starting out, you don’t need to worry about collecting more data. All businesses already have a lot of data, such as:
- financial records (expenses and sales revenue)
- CRMs or customer database associated with purchases
- Website metrics
Make sure your tools are capturing the data that matters most to you. For example, if you want to analyze where your customers are located, but your CRM doesn’t consistently track city or country, you’ll need to update that. Likewise, if you’re curious about your website’s customer journey but haven’t set up analytics, now’s the time to start! (Read on for suggested tools.)
Define Your Goals
It is probably evident at this point that your business goals should drive the data you gather and analyze, so begin there. What are pressing issues or challenges that are keeping you up at night? Perhaps you’re resting easy but still have a sense you could improve your profit margins or customer acquisition and retention if you just had the right information. In that case, focus on what you want to accomplish in the next 6 to 12 months. Choose one or two goals to focus on and then consider what kind of information you need to make improvements in those key areas.
Save Money with Simple Analysis
If cutting costs is one of your goals, data can help. Start by asking:
- Are your recurring expenses pulling their weight?
Subscriptions and services often renew without us realizing it. Review what you’re paying for—and what you’re actually using. - Which marketing channels are working?
Ask new customers how they found you and log it in your CRM. Check your website analytics (using tools like Google Analytics 4, Mixpanel, Clicky or Matomo) to view session data by channel. Which channels are driving traffic? Which ones aren’t earning their keep? - Can your operations run more efficiently?
Determine if you can streamline your business processes to save money. Don’t forget to include the cost of time – yours and your team’s – when determining operational expenses! For example, it might be time to invest in a virtual assistant to free up more of your time for tasks that generate more revenue.
Key Metrics to Track
Once you’ve set your goals, pick 3–5 key metrics (KPIs) to measure progress. For example:
- Conversion rate – what % of leads become customers
- Average order value – how much each customer spends
- Customer acquisition cost – what it costs to gain one new customer
Running a subscription-based coaching business? Try tracking how many leads convert, how long clients stay, and where they came from. These insights alone can lead to smarter marketing and better retention.
Next, create a simple dashboard to visualize your progress and spot trends at a glance.
Tools You Can Try Today
You don’t need fancy software to get started. The following tools are easy to use and beginner-friendly:
- Google Analytics 4 – see where your website visitors come from and what they do
- Google Sheets or Excel – build simple tables or pivot charts
- CRM or accounting software – check for built-in reports or charts
- Free visualization tools – try Looker Studio, RawGraphs.io, or Datawrapper
Here’s an example from a client dashboard that tracked active clients, retention rates, revenue trends, average order value, and the most profitable clients:
When you’re ready or need more advanced charting software, check out Datawrapper, RawGraphs.io, and Looker Studio, which offer free and easy to learn visualization tools.
Final thoughts
Start small. Choose one question you want your data to answer and take 15 minutes to explore it this week. You might be surprised by what you discover!
Ready for the next step? Download my free quickstart checklist and read my post on setting up your tools to collect the data you need!
