Today, the corporate world is experiencing an influx of data. The new-age digital forums generate tons of data, unfolding consumer spending patterns, purchase history, market dynamics, changing preferences, and much more. This enables brands to develop more targeted marketing campaigns, innovative products and offer personalized experiences to customers. However, analyzing raw data is no easy feat. You have to integrate analytical tools to gain rich insights from the extracted information.
Data analytics tools can examine historical data to identify previous business trends. At the same time, they perform deep statistical analysis through predictive and descriptive modeling to predict future performance. You can also utilize advanced analysis techniques such as cluster analysis to target audiences that share similar preferences. In practice, analytics optimizes business processes through data-driven decision-making.
Well, that’s not all business analytics has to offer. Here we are highlighting five ways analytics has transformed current business operations.
1) Expands Business Intelligence
Surprisingly, big data has enlarged capabilities of business intelligence. Now, analysts can utilize data to undermine historical patterns and look ahead at future trends – all thanks to analytical tools. It enables organizations to gain a more comprehensive view of their business processes. For instance, you can explore new, disruptive business models by analyzing the data patterns. Likewise, if data trends show an upsurge in demand for herbal skincare products, you can tap into this market.
However, working with analytics and data isn’t everyone’s cup of tea. It requires an in-depth understanding of big data and proficient analytical skills. Entrepreneurs who lack these skills prefer to hire professional experts with relevant education, such as an online Masters business analytics degree which equips them with advanced analytical skills that go beyond traditional data processing. In turn, you can capitalize on new opportunities and take your business to the next level.
2) Enables Data-Driven Decision-Making
Data analytics play an integral role in business decisions. Whether you plan to expand the business or redesign products, rich data insights can show you the ropes. You can analyze the costs and benefits of business expansion to ensure if it is worth taking the risk. Similarly, you can identify consumer’s changing tastes to redesign products according to their preferences. In addition to improving efficiency, data-driven decisions can set your business on the way to success.
Moreover, you can take advantage of the available information regarding delivery schedules, employee payments, asset maintenance, etc. The analytical tools can analyze this data and recommend suitable solutions. For instance, if the asset is deteriorating rapidly, analytics might recommend switching from straight-line to diminishing balance depreciation. These tools provide useful insights into internal business operations, letting you make more apt decisions.
3) Optimizes Customer Service & Experience
Big data allows organizations to gain rich insights into customer behavior. In turn, you can optimize customer service by putting customers’ needs first and prioritizing their touchpoints. You can address their concerns promptly, provide after-sales service, and seek feedback to keep improving with analytical tools. Have a look below to see how analytics can optimize customer service.
- Chatbots: Analytics combined with artificial intelligence can enable chatbots to interact with customers. These are AI-powered bots that use analytics to learn about customers’ recent and past experiences. They collect data on user behavior and inform analysts about your customers’ needs beforehand. Hence, providing knowledgeable customer support.
- Predictive Analytics: It can identify customers presenting a high churn risk and help enterprises take proactive measures to improve customer experience. Mainly, the analytics delivered clues such as denied credit requests tell managers about high churn risk. Upon learning about it, they can prevent it by offering additional options.
- Geolocation Data: With the help of geolocational data, you can send well-timed messages that entice customers to make a purchase. For instance, if a customer lives nearby your retail store, you can send a special discount offer applicable for the next three hours.
4) Mitigates Risk & Fraud
In today’s digitalized landscape, the threat of data breaches and cyberattacks is on the rise. Hackers try to gain illegitimate access to systems and steal confidential business information for ransomware. Fortunately, analytics is helping in mitigating cyber risks and frauds. It utilizes two fraud detection techniques – artificial intelligence (AI) and statistical intelligence. AI protects physical, intellectual, and financial assets, ensuring internal and external threats don’t misuse them.
In comparison, statistical methodologies implement fraud-detection models. It keeps an eye on unusual activities and detects irregularities in the system. The threat detection procedures send instant alerts and guarantee timely responses, mitigating the impact of a cyberattack. Hence, data management combined with analytics can help protect businesses across different industries.
5) Provides Rich Marketing Insights
Nowadays, customers’ expectations from brands are evolving. While some want superior customer services, others look for a personalized shopping experience. Analytics provide rich marketing insights to help companies respond to these changing demands. The analytical tools monitor the online activities of the target audience. They can see whether customers are hitting the back button due to poor website interface or added costs on the checkout.
By learning about customers’ behavior patterns, you can determine their pain points to attract them at the right time. Moreover, you can gain insights into customer behavior and create more targeted campaigns. Perhaps, you can send personalized offers to captivate a more significant number of customers. Netflix is already using big data analytics to recommend movies and shows based on the user’s streaming history. You can adopt a similar tactic for your eCommerce site and recommend products based on visitor’s search history.
The analytical tools will continue to transform the business world. It provides exclusive data insights, improving business intelligence, providing customer strategic edges, and streamlining marketing efforts. Similarly, analytics have taken over the responsibility for data security and risk. You can also utilize critical insights to make data-driven decisions to lead the company in the right direction. Therefore, every entrepreneur who wants to ensure business success should invest in analytics.