From promising start-ups to multi-national enterprises, companies today operate in a data-driven business world. Understanding how to analyze the data and adapt according to the metrics is crucial for success.
The following sections provide you with a quick overview of different ways data analytics drive business growth and improvement. These are the things you should know.
Before You Start
It’s important to note that data analytics has the power to shift the business paradigm. There are different tools and strategies to analyze, then take advantage of the data. This article focuses on the desirable outcomes that apply to different industries, rather than the tools and strategies themselves.
Note: The perks of data analytics don’t happen overnight. It takes time and effort to deploy the analytic tools then implement the data-driven changes. Plus, it’s usually an ongoing process that should encompass an entire enterprise.
Analyzing the project, team, and work-flow requirements can significantly reduce the cost. For example, businesses that deal with seasonal spikes in demand or project requirements need actionable data to predict the business volume and HR capacity.
This way, they get to improve staffing and make organizational changes to optimize the workflow for greater efficiency. In addition, retail enterprises get an upper hand to manage storage and shipment capacity without increasing operational costs.
One of the primary goals of data analytics is better management on all levels. Depending on the industry, the metrics may focus on product, operational, HR, project, or supplier management.
In fact, large enterprises employ continuous performance assessment of all given aspects and may even implement quartal changes to improve overall workflow. For example, a company can significantly improve its image and customer satisfaction by analyzing refund/return requests and complaints.
In this manner, the company zeros in on subpar suppliers or teams and gains a better understanding of where and how to make changes.
More Efficient Advertising
Regardless of the company size and industry, advertising is the thing that builds brand image and attracts potential clients. A large chunk of a company’s marketing budget may go to online advertising channels – and for good reason.
Online analytic tools allow businesses to test the appeal of their products or services and adapt accordingly. More importantly, the data is there to provide better customer segmentation and give the company a chance to target specific niches.
As advertising can cost a pretty penny, analyzing the campaign performance provides an optimal return on investment. On the other hand, it may signal that the company needs to take a different marketing approach.
Better Customer Value
The goal of each company is to secure a steady stream of recurring or premium customers. Data analysis is there to gauge customer behavior, needs, as well as aspirations. A company can use this data to build rapport and foster mutually beneficial long-term relationships.
The trick is to make your service or product more valuable to the customer and predict future needs. This is done by analyzing previous orders or projects and comparing that data with market fluctuations and trends. Put simply, the idea is to stay ahead of the game.
To remain competitive, companies need to gather and analyze the data within their organization and across the industry. In turn, the companies know exactly which business aspects need improvement and it should be easy to spot trends and estimate their impact and length.
Ideally, the companies should pinpoint gaps in the industry and consider strategies to bridge them. In addition, this data may allow the companies to recognize untapped markets or niches and create a plan to tap into them.
Harness the Power of Data
Chances are your company already uses some analytic tools. If not, now is high time to start. And remember, this is an ongoing process that requires the will and effort of the whole team. Once the data starts yielding tangible results, your motivation to analyze and adapt will go through the roof.