Uncovering business drivers
What factors are driving your profit?
This crucial information helps determine your business model and guide your strategy. Without it, no amount of goal-setting will improve business performance. Only once you understand your business drivers can you take the actions needed to achieve your business goals.
You may have some idea of what your business drivers are from past experience. But if you were to do advanced analysis on your data, you may uncover surprising factors you didn’t know to look for.
The challenge: most business owners aren’t data analysts
Getting this advanced analysis, however, is difficult. Most business people are not trained in data analytics.
Without the luxury of having analysts on your team, you’re probably using spreadsheets to do your own business driver analysis. Which comes with its own host of problems.
We talked to many decision-makers about the pain of trying to pull answers from the data, and here’s what a few of them said:
- “When I ask a question, it usually takes my team about a week to get back to me with an answer — but their report is never exactly what I’m looking for, and usually sparks more questions that then take more weeks to investigate.”
- “The analysis takes me so long that by the time I arrive at some sort of conclusion, the situation has changed and I have to start again.”
- “We have countless reports floating around our company — but few of them actually answer our questions, or have insights we can implement immediately.”
So, if you’re experiencing the same challenges, the first relief is knowing you’re not the only one!
The fact is, you need an easier way to analyse your own data and understand your business drivers without having to hire data analysts... or learning their skills yourself.
This is where giniPredict comes in.
giniPredict: advanced business driver analysis made easy
giniPredict makes it easy for any business to get insights into their key drivers. Powered by AI, it doesn’t require any specialist skills or training to use.
Our AI predictive models examine your historical data, looking at the complex relationships between each variable in every possible combination and identifying which are most closely correlated to your target variable (e.g. profit) — all in a matter of minutes.
For example, a local hotel looking to increase revenue may be trying to figure out which is the most effective strategy:
- selling standard rooms more often, or
- prioritising the promotion of deluxe rooms.
giniPredict analyses the sales and accounting data in minutes and shows which room sales are most closely correlated with total revenue. In this case, it is the deluxe rooms. This suggests that promoting deluxe rooms might be a more effective way to increase revenue.
Note: correlation doesn’t mean causation, here.
Our AI predictive models are masters at identifying patterns and correlations in the data. But humans are better at figuring out causation — afterall, no one knows your business better than you.
So how do you use giniPredict to get insights into your business drivers?
Option 1: Get business driver analysis on your Xero data with the giniPredict Financial Dashboard
If you’re using Xero as your accounting software, you’re in luck! The giniPredict Financial Dashboard syncs with Xero and generates a key driver analysis chart for your income and net profit in minutes.
(If you’re not, don’t worry, we’re adding more integrations soon!)
giniPredict assigns an importance score to each variable based on the predictive power it contributes, so you can see which variables have the most impact on the target variables (in this case, your income and net profit).
A score closer to 0 indicates weaker correlation, and a score closer to 1 indicates a stronger correlation.
For the chart to work, you’ll need these reports in Xero, going back at least 3 years:
- Trading income
- Operating expenses
- Cost of sales (optional)
The data syncs automatically every 12 hours and is refreshed in a click, so you never have to worry about it being outdated.
The dashboard also performs forecasts for you, and gives you clarity on the true profitability of your business at a glance.
To get started, simply log into Google > open our dashboard template > follow the instructions to authorise Xero and Google Data Studio > and voila! AI-powered insights for your data will be populated in a new dashboard before your very eyes.
Option 2: Run your own business driver analysis with the giniPredict add-on
The giniPredict Google Sheet add-on makes it easy to get advanced key driver analysis on other variables in your Xero data, or on any other time series data you have.
You can either import your data directly from Xero into your Google Sheet, or paste in any quantitative time series data such as web traffic, ad performance, user growth, and much more.
We recommend having at least 36 months’ worth of data, to give the AI predictive models enough information to work with.
Follow the prompts to choose a target variable and run a forecast. As part of the forecast, a “Most impactful variable” chart will appear, showing you the variables most closely correlated to your target variable.
You can use the the giniPredict Google Sheet add-on to analyse what’s having the most impact on your revenue, profit, sales, user acquisition and much more.
To get started, first install the add-on > open a new Google Sheet > go to “Add-ons” and “giniPredict” > follow the instructions to connect to Xero or paste in and format your own data.
Give it a try and you’ll see — with the help of AI, getting the answers you need from your data doesn’t have to be so difficult or painful. We’re democratising access to the speed and accuracy of AI predictive analytics, so businesses of all sizes can benefit and thrive, even in a pandemic.