When Lisa Gapen was new to the promo industry, she wrote most things down by hand. Visiting clients, she would note their wants and needs with pen and paper. And that’s as far as the information got. Entering it into a CRM? Tracking long-term order metrics? It wasn’t happening. In fact, many companies were using fax machines to get orders fulfilled and out the door.

Sounds like 1987. But it was merely a decade ago.

“The only digital activity we did was enter each order into QuickBooks,” says Gapen, the owner of Generate Sales & Marketing Solutions, an affiliate of AIA (asi/109480). “All those notes we took ended up in the trash. And we were always hunting for faxes of artwork for repeat orders. It was like the Dark Ages.”

Things look a lot different now. Businesses can track a plethora of data points – including customer service metrics, website conversions, inventory trends and delivery times – to see what’s working and what needs to be addressed to make critical improvements in a company’s operations. What was just the slowest of drips of information in previous eras is now a spigot opened wide.

However, all that potential data goes to waste if companies keep ignoring it – a problem that plagues countless industries, including (and perhaps especially) promotional products. In a survey by Gartner, 91% of companies say they have yet to reach a “transformational” level of maturity in data and analytics. A recent study by Software Advice found that only 5% of small and medium-sized businesses (SMBs) report using a business intelligence dashboard to analyze data on their companies. And yet, almost 30% of those who do use it say they’re “extremely confident” in data’s positive impact on revenue and efficiency.

The gap between large and small distributors is already wide, but the disparity in data usage threatens to make it a yawning chasm. Smaller companies often feel they don’t have the resources – time, financial, staff and otherwise – to effectively aggregate data, analyze it and then develop a game plan to improve operations based on the results. Large companies, meanwhile, can afford to invest heavily and extract every advantage from the data they glean. (It’s such a differentiator that several companies contacted by Advantages for this story were cagey about what data they track and exactly how they use it for business intelligence purposes.)

Small companies don’t have to be left behind; they’re fully capable of using data to make informed decisions. Advanced technology allows these companies to choose from a range of data analysis and business intelligence software tools that fit their needs. It allows even smaller operations to tap into the power of data analytics and to compete on their terms. It’s the difference between fumbling around in the dark and turning on a light switch.

“I don’t know that we would’ve grown without this technology,” says Gapen, whose company was able to track data after joining AIA in 2012, taking advantage of the Top 40 company’s resources. “From the start, tracking had an impact because we could see how numbers were trending month-to-month,” she says. “It became a huge motivator in the second year because we had a year of numbers to assist in goal-setting and the previous year’s data to compare performance. It gave us daily information to be proactive in our growth and goals.”

But even with all the data available to her and her team, Gapen knows there’s still more to tap into as the technology advances. “We’re only still just scratching the surface,” she says. “Data focuses your attention on areas that will help you grow.”

A Diversity of Data
Name an area of your business that’s important – marketing, customer trends, profitability, order management, website and SEO, social media presence. Data can help with all of those. “It’s essential for companies that want to provide clients with a successful customer experience,” says Déborah Andrade, communication specialist at SlicingDice, a server-less data warehouse and analytical database with locations in San Francisco and São Paulo. “Businesses of any size can use data to improve their buying-pattern studies, offer a customized user experience, transform random website visitors into clients, offer better pricing models and enhance inventory management.”

In the promotional products industry in particular, few people know the importance of data like Bob Herzog. He spent six years as the managing director of Import Operations for FedEx in Memphis, TN, where he tapped into the power of data to inform operations, particularly when it came to shipping efficiencies. Today, as CEO of Corporate Imaging Concepts (CIC, asi/168962), he oversees a similar set-up for the Top 40 distributor.

“Our CIC operations manager measures time in transit between our Chicago and Atlanta warehouses,” he says. “We look at daily, weekly and monthly trends when it comes to the ROI of working with preferred suppliers. We also look at client profitability data – what’s the cost per pick, the cost per box? FedEx really showed me the light.”

CIC also runs approximately 400 e-commerce webstores for its clients, and offers data aggregation and analysis for each one, including what was purchased and by whom, where the purchasers are located, popular product categories and price points. CIC can also analyze website conversions using heat maps, so they know where visitors are lingering and where they’re clicking or not clicking. “Clients want to know where they’re spending their dollars,” says Herzog. “It’s hugely valuable for them and it helps us give them advice.”

At Top 40 distributor Quality Logo Products (asi/302967), a proprietary software dashboard gives President Bret Bonnet an idea of where the company stands each day, from number of orders placed per hour, to phone volume, to conversion rates, to closed leads and closed orders. “It’s all there,” says Bonnet, “so by 9 a.m. I have a good idea of what the day’s vibe will be.”

“I know that more data means better decision-making. Otherwise, you’re just making educated guesses.” —Bob Herzog, Corporate Imaging Concepts

In addition to Google Analytics, which tracks website traffic, Quality Logo Products also uses proprietary software to play back site visitor sessions, similar to a DVR, says Bonnet. “We record about 10,000 sessions a day,” he says. “We might uncover a bug or notice something that causes friction. Then we can compare the information day-over-day, week-over-week, month-over-month and year-over-year.”

At Top 40 distributor Overture Promotions (asi/288473), the data analyzed includes website conversions, closed leads and sales, digital marketing campaign results, fulfillment logistics, accuracy rates and customer service data, among many others. “It’s critical in helping to improve the customer experience, measure marketing effectiveness and ensure the team is exceeding the service levels we agreed to with our clients,” says Tej Shah, vice president of marketing & e-commerce. “The data provides granular insight into why something isn’t working properly, allowing us to quickly remediate it. Using it to make good decisions is especially important for quickly growing companies, since it can help support efficient scaling.”

On social media, Gapen uses built-in analytics tools in Facebook and Instagram to track what content is resonating with the company’s audience, and also tracks click-through and open rates for email marketing campaigns. But the most robust aspect of AIA owners’ data analytics efforts is working with an AIA Success Manager. A team of five full-time Success Managers cover AIA owners across the country, offering advice on operations and sales. Among their menu of offerings: data analytics using designated software and an intuitive dashboard that they look at together with their clients (AIA companies) to help them make informed decisions about their businesses.

“We can use the software to see where our numbers are, who ordered what and when,” Gapen says. “We can see if someone ordered the same thing for several years and then didn’t order it this year. It helps you know what your funnel looks like at all times. You can see if you’re ahead or behind. There’s definitely some pressure, depending on what the numbers say. If they’re down, you know you’ll have to make extra calls that day.”

AIA Success Manager Aimee Golla says the data aggregation is a way to help AIA-affiliated distributors to build their businesses. Each owner’s individual dashboard tracks important information, such as best-selling products, most profitable customers, website conversions, accounting data and more. Success managers use these numbers as a starting point for talking strategy.

“We discuss their sales goals and help them develop a plan on where they want to go,” Golla says. “We’ll let them know where there’s undeveloped business with current end-buyers, which clients have fallen off and how their margins are looking. We help them figure out what prospects’ path to purchase looks like, and how effective their marketing is. It’s a streamlined solution that minimizes the time they spend crunching numbers.”

Changing the Mindset
Having actionable data patterns for a company not only informs better operations, but also allows a company to grow. “If companies want to stay small, they don’t need the data,” says Elie Katz, CEO of National Retail Solutions, which offers point-of-sale software tools for mostly small independent retail businesses. “But if they want to thrive and compete, they need to have an understanding of their product and the competition’s product. Insight is knowledge, and knowledge is power. Small companies should be thinking about how to be big companies eventually. But they have to understand the numbers.”

Quality Logo Products takes its data so seriously, it hired a full-time analyst about three years ago. “Our data scientist just number-crunches,” says Bonnet. “She makes magic unicorns out of all the data. We really started focusing on using data about five years ago. If we had adopted all this earlier on, it would have made things easier.”

Because there are so many solutions on the market today, small companies don’t have to invest massive sums of capital or hire their own data team. The biggest obstacle? Convincing companies that it’s time to up their game. The promo industry in particular tends to lag behind others when it comes to adopting data-based solutions for business operations, says Herzog. “Many distributors started out small,” he says, “and they were successful without data because they just focused on building relationships.” But to grow and compete, he says, they need to look at the data.

The large companies will do fine, he adds, because they have the resources to invest in data tools. The smaller companies “have carved out a defensible niche of serving their clients and building relationships,” he says. “I think it’s the guys in the middle who are feeling the pressure. They have to adapt, because it’s hard to run a business without data. You have to be able to see where and how you spend money, and also how much is spent serving customers.” Quick fixes, like operating on slimmer margins to close sales, won’t cut it. Additionally, as distributors diversify and offer more services to clients, data will become increasingly important.

Herzog says CIC’s clients with web stores want to see where their numbers are and how their promotional campaigns are doing. “They demand service metrics,” he says. “You can’t just say, ‘Everything looks good.’”

This is what will set the marketing partners apart from the product-peddlers. “Distributors always have to be differentiating and showing value,” says Golla. “A lot of them sell to huge companies, and data is part of their everyday world. Data can’t be ignored anymore, and it’s an opportunity to add value to the sales process. It positions distributors as experts, and it helps them work smarter, not harder.”

In a world driven by data, more adaptation will keep distributors relevant, competitive and valuable in end-users’ eyes. “Because of my experience with FedEx, I know that more data means better decision-making,” says Herzog. “Otherwise, you’re just making educated guesses. Companies can’t have enough data. The more the better, and those who implement it will be rewarded. We’re big fans of data here.”

Where to Start

You don’t have to hire a full-time analyst if you’re looking to leverage your data. The market is full of intuitive, robust software solutions for companies in all industries of all sizes. Here are key tips to get started.

Begin Small
“You don’t have to measure everything,” says Tej Shah, vice president of marketing & e-commerce at Overture Promotions. “Instead, start by implementing a process that measures an area of the business that you’re passionate about improving.”

Make Software Work for You
“Software can be customized for different needs and different-sized firms,” says Elie Katz, CEO of National Retail Solutions. “Ours has a buffet of options our clients can choose from. It’s not, ‘This is what’s in this box.’ Software allows you to put in specific parameters and it generates reports based on that.”

Have Everything in One Place
“Data has to go through stages from ‘raw’ to ‘treated’ in order to have value, because by itself it means nothing to businesses,” says Déborah Andrade, communication specialist at SlicingDice. “Use an analytical platform that can offer advanced tools in a single place, so you’re able to cross-analyze the information and generate insights more quickly.”

Compare Your Options
“There are so many tools now to use and gather data, and it’s reasonable,” says Bob Herzog, CEO of CIC. Options include Domo, Qlik and Google Analytics as well as ASI’s ESP CRM. (For a full list of popular tools, visit bit.ly/DataToolsASI).

Sara Lavenduski is the senior editor for Advantages. Tweet: @SaraLav_ASI. Contact: slavenduski@asicentral.com.