What is data analytics? How does it benefit business?
Data collection has become a norm in every business today. Businesses have structures set up that helps them gauge customer behaviour and product consumption patterns. This information is gathered from various sorts of digital footprints including social media and online interaction, usage of mobile applications and other forms of digital clicks. These behaviour patterns make it possible for businesses to predict their future and create opportunities for both sustenance and growth. All of this comes under the umbrella of data analytics. Let’s look at what it means and how it can benefit your business.
What is data analytics?
Data analytics refers to the process employed by businesses through which they examine data sets, so as to come to conclusions regarding the contained information. It is done with the help of specialised software and systems. The techniques and technologies of data analytics are used widely in the commercial industries so as to enable companies to make better, informed business decisions. The term data analyticslargely refers to the assortment of applications such as business intelligence, online analytical processing and other advanced analysis applications used to procure various types of data.
How does data analytics benefit business?
There are several benefits of data analytics; from helping businesses increase revenue and operational efficiency to helping them understand and respond faster to emerging market trends. Data analysis also helps a business gain a competitive edge over rivals companies and helps boost performance. Here’s how data analysis can benefit a business.
It helps define the ideal customer: Data analytics can help change the way that businesses look at their consumers. It helps companies understand the consumption patterns of their customers; providing them information such as websites frequented by customers, social media channels used by them as well as customer’s favourite sections on a website. This is a huge leap from the former patterns of sales forecasting in which business decisions were takenon the basis ofbasic metrics like past sales performance and customer demographics, which offered very limited insight into consumer behaviour.
It promotes marketing optimisation: Since more and more consumers are becoming comfortable with embracing digital platforms for shopping, big data analytics helps companies make better marketing decisions. Companies can promote their products across various marketing channels while continuously optimising their marketing efforts. The advertisements you see on your social media websites and video applications, based on your previous searches are a great example of marketing optimisation.
It enables companies to conduct market research: Companies can rely on various types of survey tools available online through which they can easily conduct qualitative as well as quantitative market research. Research can be conducted much more quickly, efficiently and inexpensively today than ever before. Furthermore, it becomes much easier to analyse and act upon the acquired research results.
It enables companies to optimise customer engagement:A very important use of data analytics is that it not only helps companies identify their customer patterns but also provides minute details about the customer such as the place from where they are shopping, what their preferences are, and the frequency of purchases made by them. It also helps understand how and when the customer prefers to be contacted. Data analysis enables companies to analyse how customers interact with their website user interfaces and helps them understand how it can be improved. For instance; a product that can be viewed by zooming has better chances of being purchased as opposed to one which does not provide the zooming facility.
It aids real-time personalisation of offers: Combining big data analytics with the algorithms provided by data analysis software and applications, provides businesses with opportunities to personalise offers for customers in the real-time. Through data analysis, businesses can present specific products the customer has been eyeing through promotions. For instance, if a customer moves something into his wish list, he can get reminders in the form of push notifications when the price of the product drops, or when only a few pieces are remaining.
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