Insights

We are proud to be named a West Coast Regional Leader for 2024

Harnessing the power of data analytics in business service companies

ARTICLE | September 12, 2023

Authored by RSM US LLP


Data analytics is instrumental in optimizing business operations for service companies. Every company deals with challenges, including customer experience, inefficiencies, workforce utilization, and inventory management. Leveraging the proper data analytics tools can address these issues. While it may require an investment upfront, if done properly, companies will reap the operational and financial benefits down the lines. Data analytics can help in the following areas:

Lead/quote-to-cash

Service companies can examine customer data, lead sources, and conversion rates through data analytics. This enables them to identify the most effective lead generation channels and optimize marketing strategies, thus improving sales conversions. Data analytics can also help streamline the quote-to-cash process by identifying bottlenecks in the sales cycle, improving quote accuracy, and decreasing the time between making initial contact and providing a quote.

Inventory management

Service companies can analyze historical demand patterns, identify seasonal fluctuations, and forecast future demand. This enables them to optimize inventory levels, reduce stockouts, and minimize carrying costs. Additionally, data analytics can identify slow-moving or obsolete items, allowing for timely corrective actions.

Use case No. 1

Company: Janitorial services
Size: $1.2 billion | 16,000-plus employees | 400-plus service locations across North America

Problem:

The client was managing numerous segregated, on-premise systems across four businesses with limited functionality for integrated enterprise analytics. Extensive manual manipulation of data and reports resulted in time-consuming and stale metrics. Also, their enterprise resource planning (ERP) system was outdated and no longer supported by the vendor.

How RSM helped:

RSM consolidated and integrated nine data systems into an enterprise-grade data warehouse, reducing the critical report count from 120 to 28. RSM also streamlined and automated the client’s data intake process along with cross-business reporting capabilities not previously available.

Impact:

Reduced data and report preparation time by an average of 90%; enabled self-service reporting for over 200 users; nightly data refresh averages less than one hour to complete.

Project management

Data analytics can provide insights into project performance, resource allocation and task dependencies. Service companies can identify bottlenecks, allocate resources effectively, and ensure projects stay on track by analyzing project data. Data analytics can also help monitor total project costs and projected profitability based on resources allocated to the project. Companies can gain insights into the leverage model needed to complete the project, allowing them to manage their job profitability and overall profit and loss (P&L).

Customer experience (CX)

To understand customer behavior, satisfaction levels, and sentiment analysis, few aspects of the customer experience are as crucial as data analytics. Service companies can identify pain points, improve service quality, and enhance the customer experience by analyzing customer feedback, social media, and transactional data. Data analytics can assist in monitoring customer sentiment in real-time, allowing for proactive intervention and issue resolution. Companies can also identify opportunities for upselling, cross-selling, and customer-retention strategies, which helps companies be proactive in serving customer needs.

Use case No. 2

Company: Tax, audit, and consulting services
Size: $68 million / 300-plus employees

Problem:

The client was in dire need of a digital transformation from their antiquated operational processes. They had limited data analysis capabilities with their existing data and systems architecture, inhibiting their ability to stay competitive.

How RSM helped:

RSM implemented a cloud-based, centralized, enterprise data warehouse and reporting system with corresponding training sessions to end-users, providing the client the ability to perform self-service reporting and enabling key reports distribution across all business areas.

Impact:

29 days reduction in lead time for executive reporting; over 60,000 clients served utilizing the automated metric generation method.

Workforce utilization

By analyzing performance data, service companies can identify high-performing employees and deploy them to the most critical and high-risk tasks, optimizing workforce scheduling. Data analytics can provide insights into workforce productivity, individual margin analysis, and the strengths and weaknesses of employees. Companies can assess rates based on the market and task, thus providing a more refined scope of services. Data analytics can also identify training needs, skill gaps, and opportunities for process automation.

Contract writing

Data analytics can provide historical contract data, clauses, and templates. Service companies can identify common risks and pricing sensitivity within a subsector by leveraging data analytics. This helps streamline the contract writing process, reduce errors, and improve efficiency and effectiveness.

Data analytics empowers service companies to make data-driven decisions, optimize operations, improve customer satisfaction, and drive business growth. By leveraging insights from data, companies gain a competitive edge in the market and deliver superior services to their customers.

Let's Talk!

Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by Cameron McMillian, Karen Wiltgen and originally appeared on 2023-09-12.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/industries/business-services/harnessing-the-power-of-data-analytics.html

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

​Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how ​Vasquez & Company LLP can assist you, please call +1 213.873.1700.

Subscribe to receive important updates from our Insights and Resources.

  • Should be Empty: