Data Matters: How to Apply AI for a Winning Strategy

How to Win with a Smart Data Strategy: CPR's 3 Best Metrics to Track Now💡

Have your heard of precision over volume? This war like strategy holds true in the world of business. It is like a jungle out there where only the fittest survive and level up. The war is a war of cutthroat competition, a war of Big businesses squeezing out mom and pop shops, a war of technological speed, a war of exceptional customer service, and on and on. Welcome back to part three of the Consultant Proficiency Resources war on AI series. Today's post focuses on 3 key metrics because it is certainly not about the volume but precision. You are the captain leading your troops, you must decide who stays, who goes, do you go right or left. Let 's explore.

You see, big corporations chase "Big Data," but you don't have petabytes of customer information, or do you? If your response is yes, then fast forward to book your appointment and let's explore further. If your answer is no, then you are in the right business practice offering free, advice on how to level up in an era of AI dominance. 

As small or mid-size business, it is important to emphasize that your strength lies in understanding and applying Smart Data as your navigation tool. Smart Data references quality and relevance of the few metrics you choose to track as a leader. As a data intelligence expert with more than twenty years of data management, I know two key points about data. The first point, not all data are created equal. The second point, data can be used to transmit any message you desire. Here is the question, is the data metric that you are tracking the right data for the growth and development of your business? Data is a like a mural! Collected together, you see pretty colors, and maybe even pictures in silos but the real question is, is it relevant to your circumstances short-term vs long-term?

Every business that is in its growth mindset must focus on data that drives cash flow and customer retention. Consultant Proficiency Resources offers three non-negotiable metrics:

1. Customer Acquisition Cost (CAC) by Channel: Unless you have a ton of cash, the economic squeeze demands every leader knows its marketing budget and how every dollar is working. Use AI tools to calculate the true cost of acquiring a paying customer from Facebook, Google, or organic search. 

Consultant Proficiency Resources' Recommendation: Cut your worst-performing CAC channel immediately.

2. Customer Lifetime Value (CLV): This tells you how much revenue you can expect from a single customer over your relationship. In a down economy, your focus shifts to retention. Track CLV religiously. 

Consultant Proficiency Resources Recommendation: Use AI to identify customers at risk of churning (low recent engagement, open tickets, vs late payment or other collaborations etc) and prioritize them for human outreach.)

3. Gross Profit Margin (GPM) by Product/Service: Which product truly makes you money. Factor in all associated variable costs. Data analytics may reveal that your highest-revenue product might have your lowest profit margin. 

Consultant Proficiency Resources Recommendation: Use your GPM data to inform dynamic pricing and focus your marketing spend on high-GPM items.

The above tips are some of the most standard recommendations from a business strategists with a focus on data intelligence.

Tip of the Week:

Know-Garbage In, Garbage Out! GIGO applies to AI. Clean data is the fuel to effective decision-making. As we draw close to the end of another business calendar year, be sure you are cleaning and maintaining accurate data.