Benefits of Data Analytics for Businesses

Data is a gold mine in today’s business environment. It adds value to every business process and if managed well, the value appreciates by the day.

According to a survey conducted by Micro Strategy, organizations worldwide are using data to:

·??????Improve the cost efficiency of their operations

·??????Monitor and improve their financial performance

·??????Drive strategies and adapt to changes in a dynamic business environment

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WHAT IS DATA ANALYTICS?

Data analytics is a process of investigating raw data to draw meaningful and actionable insights. New and emerging technologies such as Machine Learning and Artificial Intelligence have increased the importance of data analytics for running a business, irrespective of the size and sector of the business. The key objective of data analytics is to act as a bridge between the decision-makers and the raw data. All you need is the right visualization tools and techniques and your data is all set to make a road map for the future of your business.

TOP FIVE BENEFITS OF DATA ANALYTICS:

1.?????SUPPORT DECISION MAKING

You can start a business based on your gut but you need to run it based on facts. A lot of start-ups today, are unsuccessful because they fail to make use of the data that they acquire from their operations and consumer experience. One of the key reasons is the lack of quality data to back their strategies and decision-making. Data analytics can help you filter raw data and present it in the most relevant and understandable manner, giving you a realistic picture of business efficiency and take correct and timely decisions accordingly.

2.?????PERSONALIZE AND IMPROVE CUSTOMER EXPERIENCE

Customer experience is one of the key pillars of success in any business. Consumer data collected from various sources such as e-commerce, social media, and offline experiences can be used to create comprehensive consumer profiles and provide a more personalized experience each time a consumer interacts with the business. Take a fashion brand with an online and offline presence as an example. The company can collate offline sales data with data from its social media pages and define various target categories. Separate campaigns can be created to individually cater to each category. This provides a personalized experience to each existing and prospective customer and improves the overall transaction quality between the customer and the company.

3.?????MITIGATE RISKS AND HANDLE FALLBACKS

A business without risk is a business without prospects. However, businesses should be able to identify and minimize risks in order to ensure minimum setbacks and losses. Data analytics help a business foresee a fall in demand for its products or services. Businesses can leverage this information to determine the optimum price and time for a clearance sale or discount offers to ensure the inventory is reduced.

4.?????INCREASE WORK EFFICIENCY

An organization’s efficiency depends on the efficiency of the people working in it. Analytics can help in determining the efficiency of the workforce of different departments and processes, pinpointing the core improvement or attention areas. This can be a basis for conducting training and employee engagement programs or upskilling the employees to ensure improved efficiency and boost the motivation of employees.

5.?????OPTIMIZE SUPPLY-CHAIN

Just like employee efficiency, operational efficiency also affects an organization’s success. Analyzing and investigating data on various operations can help in identifying bottlenecks and causes of delays. If a demand forecast suggests a rise in demand for a particular product, timely action can be taken to ensure that enough vendors are onboarded to meet the increased demand for raw materials for production. Moreover, data analytics help in optimizing inventory levels of seasonal products or products whose demand fluctuates on festivities or social trends.

WANT TO LEVERAGE ON YOUR BUSINESS DATA?

If you have started realizing the importance of data and its long-term effects, it is time you look for the right analytical tools that support and suit your business requirements. At PBI Analytics, our highly experienced team of data consultants can help you in the journey of growing your business. We don’t just offer services; we offer our elaborate experience to be put to your benefit. Understand your requirements today.