Get The Most Out Of Data Analytics

We seek ever more data for a good reason: it’s the commodity that fuels digital innovation. However, turning those huge data collections into actionable insight remains a difficult proposition. According to a McKinsey survey, only 18% companies across the globe believe they have the skills necessary to gather and use insights effectively and at the same time, only 19% of companies are confident that their insights-gathering processes contribute directly to sales effectiveness. A report from Infosys found that a significant proportion of businesses say they are failing to utilize data analytics properly due to a dearth of properly-trained staff. Unfortunately, gaining access to technologies capable of analyzing an abundance of data in a short duration is very difficult. While many companies have the means to record large quantities of data, they are simply unable to process and analyze that information effectively.

Organizations that find solutions to formidable data challenges will be better positioned to economically benefit from the fruits of digital innovation.

With that basic premise in mind, let’s take a look at how we can make the most of data analytics. 

How Does Big Data Help Businesses? 

The key to using big data is understanding what it can help your business achieve. While big data is frequently associated with marketing and e-commerce, it would be a mistake to believe that data is restricted to those small sectors. Businesses across industries can benefit from data in numerous ways with proper analysis enabling a company to stand out from their competition. Such practices may also be used to detect potential errors before they occur or to prevent fraud, particularly within the financial sector.

For e-commerce companies—such as Amazon and Wal-Mart— their strategy is to use data to their advantage. By carefully evaluating the browsing behaviour of their users, these companies better understand their shoppers, their habits and their needs. This information is then put to good use to ensure the business maximizes their profits. The data also gives the company the ability to display products that specific users will be more likely to order and purchase.

Here's what you need to understand first: 

Before a company begins to collect large amounts of data, it is important to formulate a long-term plan and goal. Storing data can be costly and analyzing the information can be even more so. Therefore, it is pertinent to identify your company’s goals for the data ahead of time – your intention while drawing the information and what you intend to learn from the data once collected. 

1. Collecting Data

Now, you should figure out precisely how your business intends to collect consumer data. The possibilities are nearly endless. Some businesses will rely on data from social media networks such as Facebook and Twitter.

Another good idea is collecting transaction information. If you sell goods and services online, collecting such information from your transactions will prove to be very helpful.

2. Evaluating Data Relevance & Accuracy

Next, you need to determine the true value of your data. Information that has been compiled in a haphazard manner may be inaccurate, full of flaws, and simply worthless. 

Therefore, it is essential that you analyze the true accuracy of your information before spending an enormous amount of money to analyze the data in the first place. This will help you determine whether or not the data will contain any valuable insights. If it does not, collect the data in a more accurate manner before moving forward.

3. Gaining Insights

The majority of companies already store a sufficient amount of data on a regular basis that give you an advantage and ensure you better understand your company’s current practices – including compliance with local and international laws. Also, be sure to consult with the team or individual who is responsible for analyzing your company’s data.

4. In-House Capabilities

Believe it or not, storing and analyzing big data can be a huge and expensive process. Great skill and experience is needed to effectively scour through information and utilize associated software. Many businesses have failed to add data analysts to their teams and this puts them a step behind their competitors. At the same time, many will be unable to maintain and manage their own in-house talent. While it may seem like a good idea to dedicate resources solely to data analytics programs, this might ultimately prove to be a costly mistake.

In order to get the most out of your data, it is pertinent to closely correlate data analytics and IT technologies. Avoid compartmentalizing! Instead, try to expand your resources across both sectors. Investments in IT infrastructure should coincide with data analytics technologies and vice versa.

Studies by McKinsey & Co have shown that 40% of companies were only able to boost their profits with complementary and coordinated investments in both.

5. Data Visualization

Once you have learned how to collect accurate data, it is time to carve out insights from the information. Visualization is a key aspect of this process as it gives you the ability to represent the information in a more understandable manner.

In all likelihood, your team will have a few members who are uncomfortable with numbers. In order to guarantee your data is utilized efficiently, you need to display the information in a visually appealing manner.

The utilization of certain tools such as Google Charts will make it possible to transform the data into graphs and charts. This is highly recommended. Charts are easily understandable and will help to ensure each member of your team is involved and engaged.

6. Turning Insights into Actions

Having access to big data and being able to analyze that data will not do you a bit of good if you are unable to translate those efforts into successful actions. Truly, obtaining the tools necessary to analyze the data is simply one step in the right direction. Whether the end goal is to increase security or drive profits, it is important that you figure out how to transform the gained knowledge into effective actions.

For example: 

MasterCard has begun to provide clients with access to the data analytics software and technologies needed to fulfill their unique goals. MasterCard now provides businesses with information services known as MasterCard Advisors which give them the ability to make more accurate and worthwhile business decisions in a rapid manner. This informational service relies heavily on real-time transaction information, as well as proprietary analysis to provide businesses with the insights needed to make the right decisions.

Proctor & Gamble and other big corporations have also utilized big data to strengthen their customer insights and for a more efficient decision-making process. 

Final thoughts…

At the end of the day, business is changing, and technology is leading the way. Companies of all shapes and sizes can benefit immensely from engaging in the practice of data collection and analysis. By utilizing the information provided, you will be able to configure a unique sales and marketing strategy for your own business. The key is knowing precisely what you wish to achieve with your data, before moving forward.