The Five Benefits of Data Analytics in BusinessJuly 17, 2020
Your business is comprised of data, and only when you go through the effort of understanding what the numbers are telling you can you properly make steps forward into your future. Data is more than just sheets of unintelligible numbers that your business accumulates, it is telling a story. A story of your past, in fact that you need to use to inform all future decisions.
Unfortunately, our human brains were not designed to extract meaningful information from extensive collections of uncategorized data points. We must first organize them, and even then, we need to understand what we are looking at to make any sort of meaningful change.
That is where data analytics comes into play and why your business will benefit:
1. Highlight Potential
You need data analysts who have a degree from one of the best analytics masters programs to go through and use the data to make creative decisions and suggestions. This is the best way to use your data to highlight potential strategies and make a note of emerging trends based on your own data. The creative approach cannot be handled by a machine, and in all cases having a data analyst to go through the different areas of your company can help you better your business through a combination of machine learning and human problem-solving.
Their unique and creative input is going to help you improve the overall efficiency of your business the most, as well as provide great ideas on how to future-proof your company. Use both to enhance your business on all fronts.
2. Reduce Cost
The first and possibly the best benefit of data analytics is the potential to reduce costs. For example, by analyzing the cost of supplies vs. the sale of products, you can work out a streamlined approach when it comes to ordering. By ordering just the right amount of supplies or stock, you can reduce waste and improve your bottom line.
Alternatively, you can also predict cost savings by running analyses in regard to changing suppliers or even materials.
3. Improve Sales
Using analytics, you can understand what channels provide the most sales, what marketing strategies bear the most fruit, and even help you understand why some products or services outperform others. This sort of information will help you improve your sales tactics both in marketing and in buying stages.
4. Improve Efficiency
Efficiency is the best way to improve your company’s revenue streams. This, more than any other stage of data analysis, requires the right system. Computers can also provide data analysis, in an If This, Then That capacity.
For example, if your stock drops to a certain threshold, then order more.
5. Provide Personalization
Personalization is another area where data analysis shines. Typically, this will be done in real-time using machine learning. By tracking a user’s clicks, your machine learning program can deduce what that user likes and make suggestions based on their activity.
This isn’t a program you can just start up and leave alone. You need to set parameters so that your AI can make genuine suggestions based on activity and information.