The best thing about Business Intelligence
is that it can help you “ZOOM IN” on the very tipping point you’re looking for.
You don’t have to be a data or excel wiz to
take advantage of Business Intelligence. You don’t have to be someone that
understands numbers or knows how to work with data. You just have to be someone
that wants to improve their business.
In this post, I’m going to give you 5
really quick examples from separate industries of how they used Business
Intelligence to create a tipping for their business. That will give you some
insight on how you can use this for yourself too.
Business Intelligence is no longer the
mainstay of big behemoth companies with huge teams. It’s accessible to the
small companies, with just a few staff, which makes the playing field far more
level. Now you can compete with the big boys; one of the biggest shifts in this
area in the last 5 years.
APPS OR GAMES – Let’s say you have a Mobile app or a game. You could have your
mobile app developer install analytics into your app so that you can track
every element of your user behaviour. You could then identify the very point
that causes users to abandon your app or causes their interest to wane. Then
you could come up with some simple ideas of what might be causing their
interest to wane, test them and then compare the performance against the
previous incarnation of your app. After a series of simple but significant
improvements you’ll find you retain more users. This is the exact process Angry
Birds used and went on to create a billion dollar franchise. Notice how Fragger
didn’t take off but Angry Birds did, even though the concept is very similar?
It’s because the guys at Angry Birds realised that the physics in the game had
to be really polished for people to take it seriously. Notice how smooth the flight of each bird is
in the game, and the realism of the elasticity when you first launch a bird?
They realised that was what was key to getting this game to a tipping point.
And the rest, as we know is history.
2) A LISTINGS WEBSITE – You could analyse
all the listings on your website and see which listings perform better than
others. Then use those insights to help your users create better listings,
because as they make more sales, so do you. That’s what AirBnB did. They
discovered that host listings that had better pictures always performed better
than those that didn’t, so then in the beginning they started offering a
service where they would take the pictures for you, because they wanted every
listing to have a great picture. Over time the users started to understand this
intuitively, plus AirBnB provides listing guidance for every new host to
encourage them to take the best pictures for their listing. That was the
tipping point for a $800m business.
3) A FINANCIAL COMPANY – You could analyse
all the transactions of your customers and look for patterns that suggest when
they’re likely to make certain purchases. For example, American Express that by
looking at their data discovered that when a middle-aged man suddenly took an
interest in gardening as a hobby and bought 3 basic tools (A spade, a shovel
and gloves), chances were his marriage was on the rocks. So American Express
started sending these men offers for Divorce Lawyers. The conversion rate was
4) A BIG COMPANY WITH A LOT OF EMPLOYEES –
You could analyse all the reasons your employees gave for why they left then
fix every objection one by one and become one of the best employers in the
world rivalling Facebook or Google, because that’s a large part of how they do
5) A FOOD RETAILER – You could analyse all
your top performing menu items, pick the top 20% of items in each category (i.e.
starter, main course, dessert, drinks etc.) and then reduce your menu to just
those items. You’ll find every customer that walks through the door will be
ecstatic because you know full well that those items perform well. Your
customers won’t be able to get their menu choices wrong nor will they be
paralysed by the paradox of choice. Your staff can focus on just a handful of
items in each category which makes both yours and their life easier and you can
keep perfecting each of the menu items even further until people can’t stop
raving about your restaurant. Who takes this kind of approach? Every well known
fine dining restaurant that is out there.
So there you have it. 5 Different examples
in 5 different industries, and the possibilities are endless.
How will you use Business Intelligence in
your company to create the very tipping point you’re looking for?