How to Solve Business Problems with Statistics

Regarding statistics, entrepreneurs agree that they need to collect as much data as possible on all aspects of their business. However, in doing so, they completely overlook that this is only half the battle. After all, doing the right analysis and drawing appropriate conclusions is far more important. Because the figures can act as an objective indicator, but the findings can be subjective.

An Example of a Ski Store

Suppose a certain entrepreneur organized the work of a store that sells skis and snowboards, as well as things and accessories for those who like to go downhill in winter. And for example, such a store operated for several years quite successfully and then stopped making a profit. And has been going on like this for two years. In this case, the entrepreneur can ask for help from a marketer who will collect and analyze statistics.

Possible difficulties are as follows:

  1. The main problem is that business owners usually save on good specialists or think they know the problem. For example, in this case, the entrepreneur may ask for a product in high demand to bid for it in the new season. It turns out that from the beginning, the store owner already dismisses the idea that he doesn’t know the problem. Accordingly, he may give the marketer, who will study statistics, a different task.
  2. A marketer can skillfully and even very nicely process the information, making a bright and colorful presentation. However, various “embellishments” in data presentation can easily distort the perception of the conclusions that should have been made. For example, you can make a visual chart without numbers, which will graphically reflect the number of products sold. And then it would appear that the lion’s share will fall on accessories. What would an entrepreneur want to do? That’s right, to increase the range of accessories. What’s wrong? A chart with numbers should have been made, indicating which group of goods brought in the highest profits. Because in such a business, by the sales and profitability ratio of the most important product, jackets are the key. Therefore, providing a statistical cross-section, the entrepreneur will buy jackets, not accessories.

  3. Suppose the entrepreneur noticed incorrect research and realized that his maximum income came from jackets. Plus, he knows, for example, that the last two years, winters were warm, which led to shorter seasons and less snow. Consequently, people enjoyed riding less. Now meteorologists promise that the coming season will be snowy and frosty. And the business owner brings many jackets, but the profits still need to increase. What is the mistake? The entrepreneur concludes his experiences instead of studying the market and understanding how to attract new customers today. The entrepreneur should have conducted comprehensive research to determine people’s needs in the current season. Perhaps the advertising campaign’s nature needed to be changed because the methods that had worked earlier were now outdated.

Which Laws of Statistics Work Independently of Ideas About Them?

The law of big data. It is interesting to study big data, but the conclusions may only sometimes provide valuable practical advice because knowledge of different aspects does not say that there will be a key to influencing buyers of jackets or accessories in the new season. The law of experience. Unfortunately, people see what they want, and here is the root of many mistakes.

The law of damage due to data flattening. It is necessary to understand not only general trends but also to delve deeper into each business process. Then you can make a detailed analysis and identify useful points. This is why there is a severe shortage of good statisticians and marketers in the market right now.

And those studying statistical analysis now will easily find a job in the future. The main thing is to learn as soon as possible, and if necessary, specialized services will help with this, which are approached with a request, “Do my statistics assignment for me.”