In the age of digital marketing and data-driven decision making, the use of business analytics is increasingly being viewed as a great resource for a variety of industries. Experts and thought leaders have both identified the plethora of opportunities that business analytics can provide for companies operating in sectors such as healthcare, market research, and retail.
Many have already tapped into the benefits of business analytics by placing greater emphasis on tracking and collecting large datasets in order to extract useful insights that can leverage their marketing and business decisions.
What is Analytics?
Analytics refers to the practice of gathering relevant business insights through the use of statistics, research, and computer programming in order to facilitate business decision based on quantifiable data. The following are 5 major benefits that companies can achieve as a result of analytics
Types of Analytics
There are many kinds of analytics that businesses can use. Some of these are as follows.
These refer to analytics tools such as Google Analytics or Omniture, which allows companies to look at historic data to determine the impact of a specific marketing campaign.
These are employed to understand why certain things have happened, though it is best applicable for a limited set of data. It is not used very heavily by firms as it is very time-consuming and laborious.
This type of analytics is quickly growing in importance, since it allows companies to have a much better estimate of future incidents and decisions. It provides companies with an array of insights, which can be used to refocus their business strategies to achieve greater marketing leverage. For more details, please click here.
Improve decision making
One of the greatest advantages of using analytics is the extent to which managers can enhance their decision making process and ensure it is of strategic value. Analytics involves measuring correlations, patterns, and casual relationships between a set of variables.
These can involve understanding the impact of independent variables, such as customer age, income, and location, on dependent variables, such as store visits, what products and services they use, and how frequently they use such products and services. The collection, analysis, and reporting of such data allows managers to delve into insights not observable before and use to uncover a stream of business opportunities.
Become customer focused
Analytics also enables organizations to become customer-focused. By gathering customer details and analyzing their behavior in accordance with specific variables allows them to gain a deeper understanding of their needs and preferences. Decisions based on concrete data allow businesses to meet customer expectations a lot more easily and ensure they are in a greater position to expand their customer base and achieve greater sales revenue targets.
Achieve competitive advantage
Data-driven decision making also has the benefit of making a business much more competitive since they are more likely to have a business and marketing edge over rivals. Such a business can pinpoint and capitalize on the latest trends a lot more easily than firms that do not make use of analytics. More importantly, greater use of data also boosts their business agility, which enables them speed up their business processes and increase time-to-market efficiency.