How Saras Analytics helps eCommerce Brands become Investor-Ready from a Data Standpoint?

To be investor-ready, brands should consolidate their data into a data warehouse, automate BI, define and align KPIs for their business functions.

AUSTIN, TEXAS, UNITED STATES OF AMERICA, March 30, 2023/EINPresswire.com/ -- Saras Analytics, a data & analytics solution provider for eCommerce brands and agencies, has first-hand expertise on how brands can streamline the fundraising process by being data-ready. The core idea is to focus on consolidating data into a centralized data warehouse and understanding the key performance indicators (KPIs) across all business functions.

According to Saras Analytics, investors inherently seek companies that have a good understanding of their data, and this bias is natural because only what can be measured can be managed.

Investors may value a data-driven company based on various factors, including-
• Data Quality: Investors may place a higher value on a company with high-quality data, as this data is more likely to be accurate and useful for decision-making and analysis.
• Data Monetization: Investors may be interested in how a company monetizes its data,
such as through the sale of data products or services or by using the data to drive revenue through targeted advertising or personalized recommendations.
• Data-driven Competitive Advantage: A company that can use its data to gain a competitive advantage in its industry may be more attractive to investors. For example, a company that uses data to optimize its operations or develop new products and services may be viewed as more valuable than a company without such capabilities.
• Data Governance and Privacy: Investors may also consider a company's data governance and privacy practices, as these can impact the company's reputation and legal risk. A company with strong data governance and privacy practices may be viewed as more attractive to investors.

Saras Analytics has worked with brands at different stages of their data journey and helped them with managed data ops and growth analytics. Based on this experience, the following is a compiled list of questions posed to brands by investors in the due diligence process:
• Has the company completed a cohort analysis in the past separate from any external stakeholder report? If so, can the analysis be provided?
• What is the retention behavior of new customers/subscribers acquired by the company?
• How has it changed in response to macro events like Covid, Recession, etc.?
• What are the current demographics of the users of the company?
• What are the opportunities for the company to reach wider demographics?
• What data can the company provide to illustrate the growth in subscribers to its brand?
• What is the average length of a current customer subscription for the company?
• What is the average length of a current customer subscription by product/category line for the company?
• How many of the current subscribers of the company received a promotional inducement?
• How many current subscribers of the company are paying less than the full retail price?
• Can the company speak about CAC vs. LTV trends, both historically and forecasted?
• How did the company perform against its historical sales and margin budgets and forecasts?
• What are the historical sales and margin comparisons for the company in terms of actuals vs. budgets vs. forecasts?
• What is the difference in profitability among the various sales channels being used by the company?
• What is the current sales mix among the products of the company?

Here you can see dashboards for brands and agencies with the above information.

Saras Analytics recommends that brands focus on defining and aligning KPIs across the business functions, consolidating data into a data warehouse, automating business processes to have daily, weekly, and monthly performance reports, building a 360° view of the Customer, and establishing strong data team to offer decision support and increase data impact.

Saras Analytics cites a case study of a US-based DTC brand that invested in a data warehouse but did not build the necessary infrastructure to support the warehouse. This resulted in the company not having answers to questions spanning various business functions, such as data about customers, marketing efficiency, and profitability. Consequently, the fundraising process took over six months when it should have taken no more than two months.

Beyond metrics, Saras Analytics notes that there are intangible factors to consider during a fundraising process. These factors include-

• Brand Recognition: A strong brand can be an important intangible asset for a company, as it can drive customer loyalty and make the company more attractive to potential investors.
• Intellectual Property (IP): IP refers to intangible assets such as patents, trademarks, and copyrights. A company with a strong IP portfolio may be more attractive to investors, as it can provide a competitive advantage and a potential source of future revenue.
• Customer Relationships: Strong relationships with customers can be an important intangible asset, as they can lead to customer loyalty and repeat business. Investors may be interested in a company's customer relationships as a sign of the company's potential for growth.
• Employee Expertise: A company's employees can be an important source of intangible value, particularly if they have specialized skills or expertise that are valuable to the business. Investors may consider the quality and expertise of a company's employees when deciding whether to invest.

Saras believes that being data-ready is crucial for businesses that are seeking funding from investors.

About Saras Analytics

Saras Analytics is an eCommerce data & analytics solution provider that helps brands and agencies consolidate and operationalize their data. The company provides customized solutions that help brands achieve their goals and stay ahead of their competition. Saras' expertise lies in helping businesses consolidate their data (using eCommerce data connectors) into a centralized data warehouse, automating business intelligence, and aligning key performance indicators for the business across functions. By doing so, Saras Analytics enables businesses to become investor-ready by providing comprehensive answers to data requests.

Saras’ solutions are designed to help businesses at every step of their data journey to become investor conversation ready. Interested brands can contact Saras Analytics today to learn more about their services and how they can help in crafting the optimum next step in the data journey.

Krishna Poda
Saras Analytics
krishna@sarasanalytics.com
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