Global enterprises may have on-site data analysis departments. However, data-driven decisions for startups are still possible without in-house analysts or the technical expertise needed to manage large business intelligence (BI) systems.
How is this possible?
Startups can leverage available, user-friendly tools to generate and interpret data for critical business decisions. This strategy incorporates lightweight tool stacks, smart KPIs, A/B testing, and monitoring to yield actionable insights for opportunities and growth.
By applying tools and data insights effectively, early-stage startups can position themselves for impressive growth in a shorter amount of time.
Tools for Data Calculations
Start by auditing the tools you already have at your disposal for a data analysis tool stack.
Spreadsheet programs like Excel and Google Sheets are invaluable for data management, calculations, and analysis. You can also access spreadsheet applications online, as well as free percentage increase calculator tools. For instance, if you want to measure service growth, you can find percentage changes quickly through Canva.
To find a percentage change in service growth, subtract the previous value from the new value. Divide the outcome by the new value, and multiply that outcome by 100. You can apply this calculation to a specific time frame, like a holiday season or business quarter.
You can also use a percentage change calculator to compare month-over-month revenue, year-over-year customer growth, or the increase in CAC following a new service campaign.
Cloud-based spreadsheets have built-in tools for generating simple calculations. Every startup should have the following calculations in its stack:
- =SUM to find total revenue
- =AVERAGE to find the mean customer acquisition cost (CAC)
- =IF statements for basic segmentation
You can also use a web calculator to quickly calculate your CAC during a quick meeting. The CAC is the total cost of acquisition divided by the number of new customers acquired by the startup. The total costs should include all related expenses, like marketing and new customer discounts.
Data Analytics
Is your startup website built on a CMS platform? If you’re investing in a business-level plan, you should have access to analytics tools for measuring unique visitors, impressions, click-through rates, location-based data, and more insights.
Google Analytics (GA4) is another must-have in your tool stack. This essential Google tool is not only free to use, but it’s also packed with the following tools:
- Real-time user activity on your site
- User acquisition reporting
- Audience demographics
- Traffic sources
- E-commerce conversion tracking
- Advertising engagement
Leveraging GA4 effectively is a game-changer for startups. As you grow, you can also upgrade to paid versions that can accommodate even larger data analysis needs.
Data Visualization Tools
Data must be presented effectively to communicate objectives (or KPIs) and measure those goals. This is where data visualization tools come in.
Spreadsheet applications have data visualization tools for generating quick bar charts for performance comparisons. Line graph integrations communicate and track trends over time, like weekly revenue increases or trends in email subscriptions.
You can also add specific, cloud-based data visualizations to your tool stack. Visualizations enhance slide presentations, another essential for your stack. Animated data visualizations lead to more dynamic presentations that illustrate exciting growth rates for early-stage startups, like service app downloads.
Key Performance Indicator (KPI) Tracking
Key performance indicators measure the health of your startup’s business model. Various tools can help you track and visualize KPIs, like project management apps. Many of these tools offer plans that accommodate startup budgets.
Start by defining your core KPIs. Choose the five most important performance indicators based on your business niche.
Suppose your startup is selling a marketing SaaS product with a user subscription model. A good KPI would be a monthly recurring revenue (MRR) rate or customer churn. Customer lifetime value (LTV) is another important KPI, especially if you’re focused on growth.
An e-commerce startup would have different core KPIs, such as average order value (AOV) or shopping cart abandonment rates.
Select a KPI tracking tool that centralizes (and visualizes) this data in a simple dashboard.
A/B Testing Tools
Is your startup selling a digital product, SaaS service, or mobile app? You’re going to need an A/B testing tool in your stack.
Early-stage startups must identify the most effective product design before launch. Alpha and beta stages allow startups to rigorously test designs and leverage a treasure trove of user experience (UX) data.
Build Your Stack
Data analysis isn’t just for large enterprises. Startups can build powerful tool stacks for data management, analytics, visualizations, KPIs, and A/B testing.
Leverage the multitude of tools available for startups and hone in on the most important performance metrics for your objectives. You’ll quickly develop the hands-on experience needed to develop data-driven strategies.
