Recently we’ve written about the importance of data analysis and using strategic tools to enhance your profits. This adds up to the big picture: Using business intelligence tools to build your company and assure success.
Business intelligence can help your staffing company in many ways. For one, as a busy manager or owner, it removes your guesswork. Yes, you may have a great “gut” feeling for where your business is headed, but with analytics, you can run your business based on actual statistics. Trends and forecasting can help your company and your customers grow.
Another key benefit? Agility.
You can make quick business decisions and outpace your competitors. Flexibility is crucial in staffing.
Analyzing customer behavior is another great benefit. What are they buying, when? Business intelligence tools will allow you to analyze patterns and plot your next steps. It will also allow you to capitalize on up-selling and cross-selling opportunities.
Measuring KPI … Key Performance Indicators
Of course, like any other data tool, with business intelligence, it’s important to measure what matters. This comes down to figuring out what your KPI should be… that is, key performance indicators. For staffing firms, perhaps the main one to keep in mind is your activity conversion ratio.
As Staffing Industry Analysts (www.staffingindustry.com) has reported,
“Tracking the conversion ratios of certain key activities can be the best way to measure the quality of your efforts, which you can use to improve business processes. You may want to focus on activity ratios that are specific to your sales funnel (e.g., job orders, internal submissions, etc.) or you may want to look at ratios by employee and determine which employees work most efficiently. You also might want to look at your ratios by client to determine which clients are most profitable in order to learn how you can change internally/externally to bring your less profitable clients up to speed.”
There are many business intelligence tools out there. The problem for many staffing firms is that as they grow they take a onesie-twosie approach and, for example, use a different CRM and ATS software, mixing up platforms. Integration is key to having a clear, broad view of your analytics.
There are many free and open source business intelligence solutions, but for staffing firms, a service built to their needs can be a great help.
For example, at Madison, we offer our own proprietary CRM/ATS software, which is cloud-based and integrated both with mobile texting and job boards. This is because we believe and base our products on, the idea that integration is so important.
In terms of other forms of business intelligence, we also offer performance analytics that allow you to analyze trends on sales gross profit, gross margin, MU percentage and headcounts; give you adjustable periods and comparisons with dropdowns for month, quarterly or annually, and many other analytic tools. Best of all this is all available 24/7, giving you the real-time insight you need for the agility that is so important.
Since we already have the toolkit to help you succeed, we are here to help you meet challenges head-on. Contact us a call today and ask for a demo or more business intelligence insight.