Small and Medium Enterprises (SMEs) in Kenya are a vibrant part of the economy, contributing significantly to GDP and employment. However, many SMEs struggle with data-driven decision making due to a lack of understanding about analytics. This article aims to shed light on the power of analytics for Kenyan SMEs.

Analytics is not just about numbers; it's about turning data into insights that help businesses make informed decisions. For instance, understanding customer behavior can lead to targeted marketing strategies, resulting in increased sales and customer retention.

Consider the case of Mweiga's Bakery, a small business in Nairobi. By analyzing sales data, they found that their most popular items were sold more frequently during lunch hours. This insight led to an increase in production during those hours, reducing wastage and increasing profits.

Analytics can also help businesses identify trends and patterns. For example, understanding seasonal fluctuations can help in inventory management and forecasting. This can prevent overstocking or understocking, another factor contributing to increased profits.

Getting Started with Analytics

For SMEs just starting with analytics, there are numerous user-friendly tools available. Platforms like Google Analytics provide valuable insights into website traffic and customer behavior at no cost. Lipabiz Technologies Ltd, a business management platform and payments platform, also offers analytics features to help businesses track their performance.

Recommendations for SMEs

• Identify key performance indicators (KPIs) that align with your business goals.
• Collect data regularly and consistently to ensure accurate analysis.
• Use simple, user-friendly analytics tools suitable for your business needs.
• Invest time in understanding the insights generated by the analytics tools.
• Make data-driven decisions based on these insights to drive growth and improve operations.