Better decision-making is pivotal for organizations. This strategic move is backed by intense research and works on the data that is available to the company. The end objective is to derive insights from the info. Thus converting it into a form that eventually helps in formulating strategies for the company. In this blog post, we will discuss what data-driven analytics is and how it can benefit your business.
Some noteworthy transformations in the business domain
- With the penetration of data science analytics technologies across different business spectrums, there has been a paradigm shift in the mode of its operation. Moreover, companies working in coherence with data driven decision making have witnessed a rise in their market share.
- The business analytics market is experiencing compounding growth. In the next five years, its market share will rise by 7.8% approx. The preliminary reason for this rise is the rapid adoption of digital technologies.
- Along with it, the growing need to enhance business operations, increase productivity, reduce errors, and motivate companies to shift their focus towards such technologies.
- Growing complexities of consumer behaviour and the need to address their queries in lesser time have played a significant role in pushing companies to explore newer technologies. Data analytics tools can be extremely beneficial here.
- These tools allow the organization to collect, analyse and process the vast amount of data and derive useful insights. Moreover, this information is also available in a pictorial form which makes it easy for the companies to assess their strengths and weaknesses. Thus, helping them strategies for futuristic growth.
Technologies that have played a significant role
Here it is significant to discuss the technologies that has played a catalytic role in triggering the transformation across the business landscape. Some of these are enlisted below:
- Cloud computing
- Big data
- Data Science
- Artificial Intelligence
- Machine Learning
- Deep Learning
By leveraging these technologies and data sources, businesses can gain a deeper understanding of their customers, markets, and operations.
Data-Driven Analytics: The Secret of Success
Data-driven analytics is of interest to companies because it provides valuable insights into their operations and helps them make informed business decisions. Here are some reasons why data-driven analytics is important to companies:
The primary reason for implementing data-driven analytics is to ensure improved decision-making. The right decision can make or break a company’s reputation in the market. With growing complexities in the business landscape, every company needs to be on their toes. With data analytics, they can keep a tab on their customer’s behaviour and preferences, thereby helping them formulate strategies that eventually give them the lion’s share in the market.
Staying ahead of the league is the need of the hour. With many new start-ups venturing into the market, it becomes significant to cast yourself differently. Using the analytics technique, the companies can delve deeper into data and identify newer opportunities and formulate effective marketing strategies. Thus, it ensures maximum customer satisfaction. It eventually gives them a competitive edge.
A better understanding of customers
Knowing your customer is the key to formulating strategies that eventually leads to better productivity and return on investment. With data analytics, companies can analyse their customers buying behaviour and preferences. This information can create tailored marketing strategies to enchant customers and make them loyal patrons.
Better risk management
Companies can use data-driven analytics to assess risks and identify potential threats. This information can be used to develop risk mitigation strategies and better decisions about investments, operations, and other critical business activities.
3 Companies Creating Breakthrough Examples in the Application of Data Analytics
It is one of the biggest grocery stores in the UK. Tesco started working on data long back. Since 1995, it has been focusing on collecting data. It launched a new rewards scheme called Tesco Clubcard. The objective was to keep a record of each purchase customers made. When customers presented their Clubcard and paid, they would earn a point for the same. This information gave valuable insight into customers’ buying decisions and interests.
How has analytics helped Tesco?
Using data analytics, Tesco was able to produce the following:
- A few customers were loyal to the brand.
- Some customers were major buyers
- How far would a customer travel to buy products from Tesco?
Eventually, it helped gain useful insight and create tailored coupons to reward high spenders while encouraging others to purchase more. After the launch of this scheme, the sale done by Clubcard members had increased by 4% in comparison to the non-Clubcard customers.
The brand is well known for its innovative self-driven car. It is expected that soon their self-driven car will be taking over conventional vehicles. Well, do you know what powered each of Tesla’s vehicle processes? It is vision, sonar, and radar data using neural net software.
Additionally, they also use ‘fleet learning’ through which the cars share data as they pass each other, thus improving the overall analytics processes. This will eventually ensure the safety of the passengers.
We have heard a lot about the application of analytics for movie recommendations. Many e-commerce companies also use analytics to recommend products based on their previous purchases. Another addition to this list is Spotify.
With Spotify Wrapped, the company hinted at its users to summarise their past listening habits that can be shared on social media. This data is helpful for data engineers and lures the listeners who can glimpse what kind of music they have been listening to.
Using the data analytics technique, the company can inform its users if they are loyal patrons of a band and discover the music before it goes viral. This gives an emotional boost to the listener.
In conclusion, data-driven analytics is the best for organisations looking for better decision-making and gaining a competitive edge. Knowing the customer is paramount for any company willing to gain an edge over others.
With the growing application of analytics, it’s market will rapidly increase in the years to come. The data-driven decision is gaining adoption across different business spectrums. Companies are ready to invest in tools and techniques that can help position them ahead of their competitors.
With the growing application of Data Science, there is also going to be a rise in the demand for skilled Data Science professionals. You too can join the growth curve by enrolling for the Pickl.AI’s Data Science program.