Do you often receive emails from online sites offering you suggestions similar to those you may have checked? Often these emails are personalized, which directly captures your requirement. This is one area of data analytics that is called customer data analytics.
But the data analytics market is not just limited to customer analysis. It expands much beyond that. It is on the ball and has brought a huge revolution.
Data analytics is analyzing the data collected by a company. This helps them in optimizing their marketing campaigns, improving operation efficiency, increasing revenues, and improving customer service.
No doubt technology has given companies the chance to connect to more people. They have the position to predict customer behavior and target them more personally.
Without much ado, let us blow our minds with amazing information about how the data analytics industry is using technology to change the global market.
Using Data Analytics For Decision-Making
With so many new businesses in the market, you need to beat the other with what you choose. Companies today are fighting tooth and nail to go ahead, and market share analytics plays a huge role.
Companies can no longer win by guessing but by knowing what their customers and the market wants. You can only do this when you have actual data to support your decision.
There is not just one by four major type of data analytics. Before you use data analytics, you need to know which one would be the most suitable for your business.
We will start with the simple type and move up to the more complex ones. When it comes to the data analytics market, complex analysis will provide you with more valuable data.
Descriptive Analysis
If you want to know the “what” to your problem, you can use this kind of analysis. For example, you get the monthly income, monthly revenue, and production for the month. The data that you receive is what happens in your company.
The analysis does not answer the reason for the occurrence. This means if there is a fall in the revenue, you will not know the reason why. It knows what the problem is without knowing why the problem has occurred.
Diagnostic Analysis
Diagnostic analysis is the one that answers the “why” to your problem. Hence, you know that the revenue for a particular month is less than the previous month, along with the knowledge of why.
You know the reasons why the target was missed, which help you form a better decision. The analysis provides you with in-depth insights regarding the problem.
Predictive Analysis
We all predict numerous things in our daily lives. Whether it is about our personal life or professional life, prediction never leaves us!
Hence, it is not surprising that even data analytics uses prediction for decision-making. These analytics helps businesses understand what would likely happen in their business. This is done keeping in mind the market condition and their position in the market.
Despite the advancement in technology, businesses should remember that predictive analysis is just estimation. You need to focus on stability and data quality to make these predictions accurate.
Prescriptive Analysis
One of the most complex data analytics processes is prescriptive analysis. In this, the business will determine the action they need to take to eliminate any issues that could occur in the future. Moreover, the company can also make use of any recent trends in the market.
The customer analytics we mentioned, in the beginning is a result of prescriptive analytics. Numerous technologies are used in this type of analysis.
To give you proper analysis, the technology focuses both on internal and external data.
The Right Data Analytics For Your Business
You now know about four types of data analytics that can help you with your business decision-making process. However, do you use all the four types of focus on one? To find the answer to this, you need to answer some questions.
- How competent is my company is using data analytics?
- How in-depth do I need to analyze my data?
- Do I have obvious problems that do not require deep insights?
- How much gap do I have to better my current insights and the depth of insights I require?
These questions will help you decide the type of data analytics that would be the most suitable for you. Ideally, you need to start from the simplest type and then move on to complex analytics.
You also need to ensure that you have the right means to make use of the data. This would need a dedicated team that could use the analytics for the advantage of the business.
After all, there is no point in having data only to let it get old in your system.
Applying Data Analytics For Business Success
Data analytics have become a crucial part of companies. According to a survey by Bloomberg Businessweek Research Services, almost 97% of businesses have started using data analytics.
Even though there is an issue of keeping this process consistent and accurate, the usage has been increasing. Companies mainly venture into the data analytics industry to increase company profit, improving risk management and reducing costs.
You can use data analytics in your business to target customers better. Studies show that using data analytics helps you increase your marketing productivity by about 15 to 20 percent.
By taking the four considerations (what, why, future prediction, and future decision) into account, you could build a stronger business structure.
Summing Up
The data analytics market has seen huge progress in the last few years. Whether customer analytics or market share analytics, every business knows the importance of data.
Companies understand how they could apply data analytics in their business structure. This has led to several sections of the business growing in a much stronger manner.
With the world becoming more accustomed to data analytics, this technology will become an integral part of every single business decision-making. This will ensure that all business decisions are made on actual data and not assumptions.
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