Whether they realise it or not, many SMEs have access to masses of data. The problem is that they often lack the tools or understanding to benefit from it.
This is where business intelligence comes in. Business intelligence broadly refers to the systems businesses have in place to turn data into insights. Once, such data-driven insights were only for the biggest organisations, but many companies now have business intelligence solutions for small businesses, too. Moreover, it can be a game-changer for SMEs, if its insights are translated into action.
As artificial intelligence (AI) continues to develop, many BI providers are integrating it into their systems. Service providers are promising more efficient BI with fewer manual steps and greater accuracy.
Critically, AI is making BI more accessible to wider audiences. Here’s how AI is transforming the business intelligence space, and how SMEs can benefit.
Easier cashflow management
AI-powered BI tools enable SMEs to analyse sales data, forecast cash flow trends, and identify payment delays or other financial bottlenecks.
These tools can highlight potential risks and opportunities to improve liquidity. With better visibility into their finances, SMEs can take proactive measures to stabilise cash flow, reduce costs, and invest in growth areas with confidence.
Sales performance analysis
For many SMEs, understanding sales trends and performance is critical. AI-powered BI solutions can provide insights into top-selling products, seasonal demand fluctuations, and customer purchasing behaviour. By leveraging these insights, SMEs can optimise inventory, adjust pricing strategies, and plan marketing campaigns more effectively. This helps maximise sales opportunities while minimising waste and inefficiencies.
For example, a small retailer could use BI to forecast the demand for specific clothing items during upcoming seasons. Using past sales data and external factors like shifts in consumer spending habits, retailers can adjust inventory levels, refine marketing campaigns, and set pricing strategies that align with customer needs and market conditions.
Enhancing customer experience
SMEs often struggle to keep up with evolving customer expectations and behaviours. AI-powered BI tools can analyse vast amounts of customer data in real time, identifying patterns and preferences. This allows businesses to personalise offers, tailor promotions, and improve engagement strategies, resulting in a more satisfying customer experience.
It might be as simple – but impactful – as identifying where on your website you lose most of your customers. By understanding their customers better, SMEs can foster stronger loyalty and boost retention rates, driving long-term success.
Small businesses are facing an uphill battle, but they don’t have to do it blindfolded. AI-powered BI tools provide SMEs with the insights needed to turn data into actionable growth strategies.
