How to use Data Analytics to drive better business insights

While the availability of data sources is substantial for businesses today, this also creates challenges with current data analytics. Digital Marketing Institute’s article discusses effective business insights and data analytics.

It is no secret that data analytics can prove to be exponentially valuable for companies of all shapes and sizes. 61% of marketing decision-makers said they struggled to access or integrate the data they needed last year.

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.

So, what can organisations do to use data analytics to achieve better insights that engage customers and drive sales?

What Can Data Achieve?

The key to using 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 behavior 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 maximises their profits. The data also gives the company the ability to display products that specific users will be more likely to order and purchase.

What 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. Ask questions such as:

• What do you wish to achieve from the information?
• Do you intend to learn more about your clients, or are you taking precautionary measures to prevent fraudulent behavior?

Once you have established the purpose of your data, these six steps should help you use data to drive the needs of your business.

1. Data Collection

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.

2. Evaluate Data Relevance & Accuracy

Next, you need to determine the true value of your data. How was the information collected? 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. Gain Better Insights

The majority of modern companies already store a sufficient amount of data on a regular basis. In order to gain better insights a number of questions need to be addressed first:

• How much do you know about your company’s data and collection processes?
• How frequently is the information updated and where is it stored?
• Is the information analyzed on a regular basis?
• Are there any security or confidentiality concerns regarding the stored information?

Gaining answers to these questions will 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 the information and utilise the associated software. Many businesses have failed to add data analysts/platforms 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. 

5. Data Visualisation

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.

6. Turn 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.

Share your thoughts with me regarding consumer and business data. You can also email me at [email protected], or call me on 1300 908 220 if you want to discuss further.

Thanks,

Wendy