Data Analytics, which is subsequently referred to as “Analytics” in this article, is very important in today’s data-driven business world. Accuracy has become the order of the day. Data, in the context of this article, refers to a collection of raw facts and statistics, and analytics is simply an analysis of this collection of facts and statistics.
Analytics helps you convert data to information for a business’s planning and strategy as well as measuring growth.
It is the basis on which daily operations should be organised for businesses. Information is usually processed and gotten from data. Analytics is not only restricted to your internet activities like measuring bounce rates on your website or click rates on your social media adverts; it involves offline activities like customer behaviour or competition’s market reach.
While not all data that is obtained is useful, analytics is unavoidable for any business that wants to succeed, unless you the business wants to operate on a trial and error basis for a very long time.
Knowledge of the industry
Analytics gives you knowledge of the industry you are operating in. Market research, for instance, will provide you with the data and subsequently the information you need to understand your customer’s needs. In an online business, for instance, analytics provides you with what people in your industry are searching for on search engines. Knowing as much as possible about your industry is key to understanding it.
Path to improvement and success
Analytic nudges you towards your business’s path to growth and eventually success. If you understand that your customers prefer your lightweight packaging to your heavy but protective packaging, then you can start to distribute your products in the light packages. Doing this would improve customer satisfaction and limit the loss of customers to the competition.
Taking advantage of opportunities
Analytics gives you a competitive advantage. If you have rivals in your niche, then you must already know that competitor analysis is very important. Analytics will also expose you to opportunities available through gaps that become exposed.
For example, as a wholesale supplier of retail goods, you may discover that people from a particular geographical area have to rely on supply to a neighbouring community because they don’t have a direct supplier to their community. This tells you that you should quickly establish a supply route to that area.
With analytics, decision making becomes easier. You know which of A and B has performed better and which to expend more advertising funds on. It provides you with the needed information to base decisions on and the accuracy you need to disburse resources.
Here are some areas of business that analytics will help you with:
· Customer relationship management
What do your customers want? How do they want you to respond to their requests? You can improve customer relations and get happier customers with better data analytics.
· Financial management
With enough data and good analysis, you can cut down on excessive spending and do better with your finances. How much did you spend in the last quarter? What was the return on investment like?
· Human resource management
Whom should I employ? Who needs training? What new department should I create? What kind of persons are best to employ in my kind of organisation? All of these are questions that data analytics will answer for you.
All of your efforts from production ripens when it gets to the marketing stage. This is where interaction with your customer base is most active and perhaps the point where you need analytics the most. Invest in market research – identify customer needs, preferences, pricing behaviour, competition and so on.
Like it is always being said, information is power and the only way to get accurate and dependable information is by collecting correct data and analysing.
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