Using Quantitative Data To Make Business Decisions

Quantiative Data

Statistical numeric data that can be used to support decisions making. It needs to be accurate and interpreted correctly if it’s to be useful. It may be collected from primary or secondary sources

Sources of quantitative data

• Graphs and charts

• Financial data

• Marketing data

• Tables or infographics (a visual representation of quantitative data in a way that makes the info interesting and easy to understand)

Bar chart

Pie chart

Financial data

Businesses can use a selection of internal and external financial data to support decision making including

• Sales revenue

• Profit

• Costs

• Tax

• Interest and exchange rates

• Valuations of assets

• Bank balances

Companies need to send key financial data to Companies House each year whereas sole traders and partnerships may keep this information private

Marketing Data

Collected through primary and secondary market research

• Surveys

• Focus groups

• Observation

• Customer feedback

• Retail or online footfall

• Government or trade publications

• The media

  Marketing data can help business managers forecast sales and to make decisions about product development and promotional plans

Market data

Refers to the characteristics and performance of the market in which a business operates such as;

• Demographic data - the market’s population structure such as age, gender and income statistics

• Market dimensions - factors such as the size of the market, the market shares of key competitors, the rate of the market growth and average prices across the market

• Investment data - relates to the prices of commodities as well as echange rate data and srock market performance

Market data can help a business identify and plan…

for new opportunities and spot external threats such as the increased power of a competitor

Market data can also be used alongside other types of quantitative data to…

make investment decisions