Pareto principle of 20/80 is very powerful when applying it to Business Analytics and BI field.
As a matter of fact, creation of too many complex visualizations, calculated ratios, designed dashboards and personalized reports may not lead to result that can be evaluated in added “Money for Business”.
More than that, too much information can bring confusion and ambiguity about enterprise performances.
In every kind of business, no matter if it’s tiny boutique or huge corporate, there are 4 main KPI’s that every little positive
change in them will generate more “Money for Business”:
frequency of return
Depending on industry, those KPI’s can be replaced by their equivalents. For Social Media, for example, leads can be defined as visitors who stay more than one page on the site, conversion as a number of site registrations, ARPU may be replaced by average activity of user and frequency of return by how many times user is active through his life cycle.
Simple MONITORING of those KPI’s and building marketing strategy in order to improve them one-by-one would be effective strategy for growth.
From campaign management system implementation based on predictive analysis to site redesign, all those marketing steps should be taken and evaluated regarding target KPI’s via PDCA model process:
If growth of target KPI as a result of marketing campaign was achieved, it means that campaign generated more “Money for Business” and can be regarded as successful.