Analysing your data is one of the most important things you can do as a business owner. For instance let’s look at the Business Aalborg Kostumer and see how analysing data, helped them grow from a failing new business to a big national success. Before 2014 Aalborg Kostumer didn’t even have analytics installed at their website, didn’t collect any ERP data, the only data they looked at was their annual tax report.
Behind the company
Aalborg Kostumer, is a small business like the more know Karnevalshoppen, which is selling all kinds of costumes to both kids and adults. They are mostly focused on the special seasons such as Halloween, Fastelavn, Sidste skoledag and the always popular Oktoberfest. Most of their revenue are from their online webshop, but they also sell locally through their physical store, but’s it’s mainly during Karneval they are selling producs there. You can find their webshop here at kostumerogudklaedning.dk
Implementing data collection
Without any data to act upon, it’s hard to decide which products are doing well, and which are performing poor, and if it’s the same in every part of the country. So the first think to setup was Google analytics, in order to see how their webshop performed. The second step was to track the sales in their local store through their new OLAP tool. Collecting these data was the first step to success for Aalborg kostumer.
Analysing the data
After a year with data collection it was time to analyse the data and figure out why sales wasn’t as optimal as expected. A few suddenly became obvious when looking through the data. A lot of the costumes that was taking up a lot of storage didn’t really sell, other was just selling during 14 days of the year. Using expensinve storage for products just wasn’t worth the cost. For a lot of products that really wasn’t selling very well they used a high amount of marketing, just to sell these products. By looking at the data, it was easy to see that certain products was popular in the east part of the country, but none in the west really cared about them.
After finding out what was wrong, it was time to take action upon these findings. A more effictient storage system, which was optimized for the various seasons, reduced storage with almost 30%. Buying the right amount of products, also helped increase revenue and being able to target the advertising a lot better, both reduced the marketing costs and increased convertion ratios. A lot of these things wouldn’t have been possible without having access to the right amount of data.
Aalborg Kostumer – the conclusion
A year after taking action, things have started to look a lot better for the kostume company. They have teamed up with another local business Fri Software, and have increased their sales with 15% while lowering their expenses quite a bit too. Now instead of having red numbers on the buttom line, they are suddenly making money instead. So collectig data is more important than you might expect.