“He who seeks pearls must dive down,” wrote John Dryden in the 17th century. Although the author did not intend to use complex data analytics, the remark precisely captures its core. Let’s find out, together with Livyoung, how far one should go into data to obtain much-needed and fact-based insights.
FIRST THINGS FIRST, LET US KNOW WHAT DATA ANALYTICS IS!
Every day, companies all over the world generate massive amounts of data in the form of log files, web servers, transactional data, and various customer-related data. Furthermore, social media websites generate massive amounts of data. Companies should ideally use all of their generated data to derive value and make important business decisions. This goal is driven by data analytics.
Data analytics is the process of exploring and analyzing large datasets in order to uncover hidden patterns, unexplained trends, discover correlations, and derive valuable insights for making business predictions. It boosts your company’s speed and efficiency.
TYPES OF DATA ANALYTICS
There are four types of data analytics. Here, we begin with the most basic and work our way to the more complex types. As it turns out, the more sophisticated an analysis is, the more valuable it is.
Descriptive analytics provides a solution to the inquiry, “What happened?” Descriptive analytics uses raw data from numerous data sources to provide important historical insights. These findings, however, just indicate that something is wrong or right without explaining why. As a result, our data experts do not advise highly data-driven firms to rely just on descriptive analytics; rather, they propose combining it with other types of data analytics.
At this point, historical data can be compared to other data to determine why something happened. Diagnostic analytics provides in-depth insight into a specific problem. At the same time, a corporation should have thorough information at their disposal. Otherwise, data collection may become time-consuming and individual for each issue.
Predictive analytics forecasts what is likely to occur. It employs descriptive and diagnostic analytics data to uncover clusters and exceptions and predict future trends, making it a valuable forecasting tool. Predictive analytics is a sort of advanced analytics that provides various benefits such as sophisticated analysis based on machine or deep learning and the proactive approach that predictions permit. However, our data consultants emphasize unequivocally: forecasting is merely an estimate, the accuracy of which is largely dependent on the quality of the data and the stability of the situation, necessitating careful treatment and constant optimization.
The goal of prescriptive analytics is to literally prescribe what action to take in order to avoid a future problem or fully capitalize on a promising trend. Prescriptive analytics employs advanced tools and technologies like machine learning, business rules, and algorithms, making it difficult to install and administer. Furthermore, because of the nature of the algorithms on which it is built, this cutting-edge type of data analytics necessitates not only past internal data but also external information. As a result, before selecting to implement prescriptive analytics, LivYoung strongly advises evaluating the necessary efforts against the potential added value.
WHICH TYPE OF DATA ANALYTICS DO BUSINESSES NEED?
We recommend answering the following questions to determine the best type of data analytics needed for your business.
- What is the current status of data analytics in your organization?
- How far should you delve into the data? Are the answers to your problems obvious?
- How far are your current data insights from the insights you require?
These answers will assist you in developing a data analytics strategy. Ideally, the strategy should allow for the incremental implementation of analytics types ranging from the most basic to the most advanced. The next step would be to design the data analytics solution with the best technology stack and a detailed roadmap for successful implementation and launch.
You could try to complete all of these tasks with the help of an internal team. In this case, you will need to find and train highly qualified data analytics specialists, which will most likely be time-consuming and costly. We recommend that you turn to an experienced data analytics provider with a background in your industry to maximize the ROI from implementing data analytics in your organization. A smart business owner will share best practices and handle everything, from analyzing your current state of data analytics and selecting the right mix of data analytics to bringing the technical solution to life. If the described approach appeals to you, our data analytics services are available to you.
Data analytics provides you with all of the vital information you need to optimize your business on all fronts. You can use comprehensive data collection, analytics, and reporting tools.
HOW IS DATA ANALYTICS USEFUL IN SUSTAINING BUSINESS GROWTH?
Data has become the backbone on which corporate leaders grow their businesses due to their useful insights. According to experts, the vastness of consumer data makes it ideal for constructing future predictions based on historical footpaths. However, before they can reap the benefits of data analytics, business owners and decision-makers must first review a number of factors. Here is a quick rundown of six ways data analytics can help your business grow and expand:
Better Decision Making
Data Analytics reduces the need for guesswork and manual tasks. Whether it’s selecting the right content, planning marketing campaigns, or creating new products, organizations can use data analytics insights to make more informed decisions. As a result, better outcomes and customer satisfaction are achieved.
Improved Customer Service
Data analytics enables you to tailor customer service to their specific needs. It also provides personalization and strengthens customer relationships. Data analysis can reveal information about customers’ preferences, concerns, and more. It enables you to make more accurate product and service recommendations.
Gaining as many customers as possible is essential for business growth. This necessitates understanding exactly what customers want and the channels they use to find products and services. Social media platforms like Facebook, Twitter, Pinterest, LinkedIn, YouTube, and Instagram are a goldmine for data analysts looking for critical consumer data. Businesses can quickly learn how prospective customers arrive at their websites and which channels they use to make purchases.
Data analytics can also assist you in tracking the effectiveness of marketing and lead generation strategies. As a result, you can use it to streamline lead generation funnels and improve underutilized systems. Data analytics professionals can examine how prospects interact with existing sales funnels and website resources using metrics such as click-through and bounce rate.
Growing your business from a startup to a formidable corporation can be a daunting task, especially without adequate data. On paper, strategies and systems may appear to be flawless. However, in such a volatile market, your company’s requirements may change. It is critical to track and monitor all systems in order to identify areas for improvement.
For this purpose, data analytics is required. It identifies the most effective methods, those that should be improved, and those that should be abandoned entirely. Companies use data analytics to attract and retain customers, as well as to increase overall value by constantly improving service quality. However, you must collect accurate and actionable data.
Cost-effectiveness and Efficiency
Saving more money and resources is critical for business survival. Data analytics can help you reduce operational costs while maintaining normal business operations. You can determine the best practices for lead generation, sales and marketing, customer engagement and communication, order and transaction processing, feedback, and many other things based on the information you collect. It also makes abandoning what does not work easier.
Using data analytics tools can help your company grow in the long run while also lowering operational costs. It enables you to streamline all aspects of your business by eliminating inefficient systems and implementing new strategies that are tailored to your specific customers. Furthermore, there are numerous free data analytics tools available, so you do not need a research team to begin collecting consumer and business metrics.
A company may sell a variety of products. Each product, however, has its own market, demands, and characteristics. Without adequate information and feedback, tracking and supervising various products can quickly become overwhelming. Analytical tools can help businesses understand how their products compare to competitors’, what drives demand, where traffic is coming from, and how well they are received in target markets. This information is critical for making decisions.
It can assist business owners in determining when to increase or decrease their promotional efforts. Metrics, in addition to product supervision, can aid in the monitoring of service provision and the efficiency of other systems. Transaction processing and website features such as call-to-action buttons and inbound links are included.
Data analytics provides valuable insights into the performance of your campaigns. This aids in fine-tuning them for the best results. You can also identify potential customers who are most likely to engage with a campaign and convert into leads.
Your company’s success is dependent on the effectiveness of established systems, company culture, and tradition, as well as forecasting. This is why most managers enroll in courses to learn how to run a data-driven business successfully. According to statistics, such ventures are 5% more productive and profitable. Data provides evidence of customer and business evolution throughout its lifecycle and can help with decision making.
Companies can also use the information gathered throughout their organizations to better understand their current and potential customers. Furthermore, the data allows for the optimization and automation of tasks such as supply chain management, sales and marketing, transaction processing, and lead generation, among others. Business owners can forecast future trends and develop effective growth strategies by analyzing past and current consumer data.
Customers are constantly looking for better deals, so the business environment is quite competitive. As a result, it is critical to carefully examine what your competitors are doing and select their most effective strategies. According to some studies, growth and success necessitate outshining your competitors and becoming the preferred option for your target customers.
Data analytics can tell you where your traffic is coming from, where they go after leaving your site, and what your conversion rate is. You can also solicit feedback or conduct surveys to gain a better understanding of how well your products and services are performing. Even better, you can identify your primary competitors and their key strengths. This makes it easier to understand what the market expects and how to provide better products and services that meet or exceed their expectations.
THE FINAL WORDS!
There are several other advantages to using data analytics for business growth and expansion. Understanding your target market, your company’s strengths, and your competition is essential for business growth. When you understand what the market wants and what your competitors are offering, you can quickly develop better products and services.
Data analytics provides you with all of the critical information you need to optimize your business on all fronts. You can use comprehensive data collection, analytics, and reporting tools.
However, professionals must be involved. Livyoung Realtech Enterprise has been providing data analytics consulting services to businesses, assisting them in making better decisions, increasing operational efficiency, and expanding their operations.
Contact us today!