What Is a Business Dashboard and What Are Its Benefits?
A pilot has to look at the dozens of needles indicating the levels that turn on and confirm that everything is okay before take-off. Or in the case that there is a possible mechanical error that will show up on their dashboard. It can also be your reality if you use a business dashboard.
What’s a dashboard?
An effective business dashboard is a type of business intelligence tool. A dashboard is a type of graphical representation of the KPIs or metrics that impact whether you achieve your digital marketing strategy’s goals. The business dashboard is also an information management tool to analyze data and pinpoint potential problems, as well as detect actions we can take to solve them.
We can say that a dashboard is a summary that gathers the Marketing department’s most essential data and represents it in the most visual format possible.
How to create a personalized dashboard for your business
The first step to start working on a dashboard is to understand the requirements a dashboard should meet, so it’s handy when it’s time to measure the performance of any marketing campaign that integrates into your corporate strategy. Your dashboard must be:
Your dashboard needs to include the metrics that help you answer critical questions for your business. You must understand the lifecycle of KPIs: we define them, redefine them, and even decide that they’re no longer relevant for us. We have to continually evaluate them to determine whether these metrics are still useful for their purpose.
Fundamentally, you choose KPIs that align with your firm’s goals. You need to be able to measure whether you’re meeting them or not, what actions are working best, and what we need to discard in the future. Fundamentally, the document includes relevant information.
Another fundamental requirement is good data visualization. That’s the only way to interpret the information in just one look. Bar charts, highlighted figures, and dates are standard features for achieving a visual design. You should also pay close attention to the structure. Some of the best dashboard examples for data visualization include PowerBi from Microsoft.
You should be able to make decisions and move to take action through the information on business dashboards. Therefore, it has to contain the information you need to take those steps. The dashboard should make it easier for you to contextualize business performance data to compare and interpret it. This way, you’ll be able to derive useful or exciting insights to either keep your business direction steady or to make changes.
You need a dashboard, and in turn, business dashboard software, that updates in real-time since the data evolves quickly. The best way to accomplish this goal is to have analytics tools and software that automatically gather the information, present in an easy-to-use format, and present it for you in an automated dashboard. At WAM, we use Google Analytics as our primary business dashboard solution, and we also use the performance dashboards made available across our Salesforce suite of tools.
What’s the purpose of a business dashboard?
The main goal of a business intelligence dashboard is to give visibility to the indicators that need to reach a set value to reach the firm’s goals. It also lets firms know valuable pieces of data, analyze trends, and set plans of action. This powerful tool will also help you map out your company’s digital marketing strategy.
So, how can a business dashboard help in your day-to-day activities? Here are some possibilities:
1. Combine and share data
The dashboard will turn you into a real expert on your business by knowing all its data. An easy-to-use business dashboard app will make valuable information for your firm readily available to make smarter decisions and easily share it with other people in the organization.
2. Decide the company’s direction
Thanks to presenting KPIs in interactive diagrams and decisive graphics, your strategic decision-making will be much more straightforward and reliable. You’ll be able to look at historical data, trends, comparisons, and more to get the most out of your data and see how your business is performing in real-time.
3. React immediately
Having access to KPI performance at any time will let the corporation react to any changes that arise in the organization.
4. Be more effective
The person in charge of managing the business dashboard can integrate this data into an easy-to-read Excel that minimizes turnaround times and optimizes management. Here is one of the business dashboard examples we can find on the market:
How do you use a dashboard?
We know how to build an effective business performance dashboard and its benefits. So, what’s next? It’s time to put it into practice. To do that, we’ll have to carry out a series of actions:
1. Decide the update frequency
If your business uses an ERP (Enterprise Resource Planning) system or any other tool that can measure this information and calculate data related to business transactions and other operations, best practices dictate that it should automatically update based on a company’s needs and characteristics.
2. Compare and measure the indicators
The business dashboard provides us with a picture of a particular moment. It will be convenient to make at least two comparisons to contextualize the data and analyze the trends:
- First, we’ll want to compare the current data with the ones from the previous period. For example, if we’re comparing them monthly, we would look at the data from the current month compared to the data from the month before.
- Then we’ll want to compare current data with the average data. In other words, we’ll want to put either our latest data or data from a relatively long period in comparison with our averages.
3. Continuously improve
The results you read on your dashboard will be the best way to check whether you’re in the right direction towards achieving your final goals and if you’re aligned with your strategic plan. Your dashboard is an information management tool, and the best way to interpret this data is through graphics in color. An example would be that numbers in red represent negative results, neutral figures in black, and the positive ones in green.
In short, your dashboard provides you the ability to define and implement your digital marketing strategy to identify the right business data and create a visually-structured, understandable, personalized dashboard. Dashboards for your business will be your best ally to control your business’s commands and get a view of your business. If you have any doubts about how to make the best business dashboard for your organization, We Are Marketing can help you create the right dashboard to make your enterprise grow.