Application of business intelligence
The following paragraphs describe very simple examples of the application of business intelligence (BI) to various parts of your business. Note that all the examples provided here are very simplistic, and are used only for explanatory purposes. Real life scenarios will rarely be as straightforward ...implying an even greater need for BI.
Using BI to analyse campaign effectiveness
The effectiveness of a marketing campaign should be tested within a week of the campaign start / finish and then 3 months or even 6 months after the campaign ends. BI is used to determine campaign effectiveness in terms of cost per lead, lead conversion ratio, total campaign ROI, post-campaign sales changes and net campaign effectiveness / ROI. Cost per lead = Total campaign cost / Total new leads
Lead conversion = Total new sales / Total new leads
Total campaign ROI = Total new revenue / Total campaign cost
Sales change = % change in sales from average after campaign / % change in sales from average during campaign
Net campaign ROI = Net change in sales over 3 months / Total campaign cost
