Business Statistics Can Determine the Success of Any Business

Too many business managers, especially managers of small businesses, fail to recognize the importance of statistics in their business dealings. Not only can statistics help to predict the success of your own business marketing, you can use them to perform audits of various company departments, assure quality control, and other processes. You can even use your statistical prowess to assist your customers with their needs as well. All of these activities proceed through random sampling. Such sampling can accurately predict many of your business applications. Hiring a trained statistician to help with analysis can be invaluable to your business. However, there are also computer software programs that can also help in much the same way.

Statisticians are interested in population demographics in marketing districts to project the success of given business practices. Such demographics describe both applicable similarities and differences to help make accurate predictions. Ignoring these differences can be catastrophic to any business. For example, the owner of a pizza chain in Southern Arizona expanded his enterprise to Utah. He assumed, mistakenly, that since jalapeno peppers were the number one selling pizza topping in Southern Arizona that they would also sell like hotcakes in his Utah operation. He failed to recognize that the population of Southern Arizona was largely Hispanic, while the population near his Utah enterprise was not. He almost never received requests for jalapeno peppers in Utah, and he ended up throwing the majority of the Utah jalapeno peppers in the trash. This was just a minor example of failure to recognize a consumer population, and it wasn’t very costly. However, had this been a major investment, he could have lost his entire business because of his failure to adequately evaluate the demographics of his customer marketing area.

Although the use of statistics is growing ever larger in the professional world, they seem to remain something of an enigma to the general population. Business statistics is a real science, long since accepted all many professional fields. The statistician can be an important business link, and could be one of the most important employees in the success of any business operation.

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