While it initially revolved around manual, paper-based methods centuries ago, data analytics and data have now become more technology-driven, and for good reason. In this blog, we will discuss what does data analytics in business means and why it is important.
The amount of data collected by businesses has never been greater than what it is now. It is no doubt then that with the growth of technology, data-driven decision-making has also become integral to a business’s strategy.
To put it simply, every decision we make today comes from experiences perceived as data points by the human brain. It is already influencing our choices, interaction, and preferences.
One can now only imagine what adopting data analytics can do to your business!
As per a report by NewVantage Partners, while 98.6% of executives say that their company aspires to be a data-driven organization, only 34.1% of them actually succeed. Additionally, a 2018 study by the IDC further stated that while companies spend trillions of dollars on building technology, 70% of such initiatives usually fail because they’ve not built the requisite data culture to support it.
With business intelligence, businesses are now inching closer to their goals. They are also understanding the role of data in ensuring consistent growth over a period.
Real-time case studies of companies such as the Lufthansa Group and Charles Schwab Corporation further strengthen the case for data analytics to have a larger role in a company’s business strategy.
While the former increased its operational efficiency by 30%, the latter increased its speed to business insights.
Companies which use analytics are 5x more likely to respond faster to market conditions by accelerating decision-making.
The stage of data fluency that a company is at also impacts growth and profitability. For all we know, data can be the perfect catalyst to help organizations reach the next level.
Talking about which, here we measure the impact of data-driven decisions on businesses.
1. Eliminating guess-work from the Decision wheel:
In earlier days, decisions were based on gut feelings. Businesses today are much more complex. Customer buying behaviors have changed a lot (owing to Covid-19 also). There are generally multiple touchpoints across varied channels before the customer buys.
At the same time, organizational processes have become much more spread out and diverse. All these touchpoints and processes generate a lot of data.
The possibility to analyze the data and get to data-driven decisions in minimal time is not less than a boon for businesses in the current competitive world.
Turning to patterns, history, and putting it all together to form a big picture enables a whole new world of what-is and what-should-be.
Data intelligence helps identify a more responsive step forward by eliminating the risks of a gut-based decision. Data brings potential and possibilities for businesses to enhance their growth and profitability.
2. Driving Process mapping and Process improvement:
Data acts as a perfect tool to put processes into information. With algorithms that identify patterns and help you improve operations that work in sync with your organization. Data intelligence also measures the effectiveness of the process followed in various functions.
With data analysis, you can evaluate which process steps are falling short and make tweaks to run operations efficiently.
This not only helps in optimizing processes and reducing cost, but also can generate a great customer experience.
3. Identifying and problem-solving mechanism:
Every customer action, right from the first touchpoint to the purchase, creates a digital footprint. These can be as emails, social media engagement, landing page visits, or even in-person interaction. Since data silos exist in many places, the challenge is to bring them together, regardless of formats, structures, and data types.
Data analytics use pre-existing data knowledge to present accurate information as actionable insights. That helps businesses address and hammer the problems at the right time.
An example would be to track the metrics and KPIs of a marketing campaign. Assume your marketing campaign wasn’t as effective as you wanted.
You go back, do your homework, open the statistics, and find out that most of your customers are from a very specific demographic.
Using data integration tools,
- you can extract valuable insights from your sources, clean and filter them accordingly
- Consolidate your findings to generate actionable insights and create a 360-degree customer view
4. Anticipate consumer behavior and flourish feedback:
Feedback is one of the crucial aspects and presents a goldmine for improvements if businesses use it effectively.
Organizations generate an enormous amount of customer data daily, but might not have the appropriate tools or people to make the most use of it.
Data analytics help businesses build a mechanism that stores, structures, and refines feedback data into actionable insights. It enables hyper-personalization at each consumer level.
This ensures business users become capable of hyper-growth while keeping customer satisfaction at the highest level.
How Data Analytics fuels boundless potential?
Data is of prime importance in a rapidly-evolving business landscape. Adopting data analysis and associated techniques helps you become future-ready. It offers detailed, actionable insights about different aspects of your business.
You can improve business processes and make strategies to strengthen relationship with customers.
You can measure top-line performance to deploy strategies that increase sales. Analytics even help you understand target segments to create better ad campaigns.
You will also be able to track consumer feedback and analyze competition, at a fraction of the cost.
Data analytics and intelligence are now a need of the hour. The traditions of manual evaluation, instinct decision making, and excel reporting are in the past.
Finally, having adopted a business intelligence culture, you now have access to ready-to-analyze data.
You put your analytical mindset to work on modern business intelligence tools, and in no time you will have actionable insights that will help you make your business better.