Data analytics refers to qualitative and quantitative techniques and processes used to improve productivity and business gain. Data is mined and categorized to identify and analyze behavioral data and patterns, and techniques vary according to organizational requirements.
You might think how can it help me?
Five Benefits of Data Analytics
Predict What Consumers Want to Buy
Imagine predicting what your consumers would buy every time they returned to your business or website. Big data allows you to keep a profile of all your customers almost like a personal connection.
For example, a customer walks into your record store to buy a David Bowie album. Big Data or Data Analytic tools provides the sales clerk with some relevant products with the same artist, rock genre or services that he or she could suggest to the customer. This is huge when it comes to added revenue to your business. Sales goes up and both you and your customer are happy. When it comes to data analysis, it plays a key component to the physical and digital marketing.
Data analytics eliminate cost. How? These smart tools can allow you to do sophisticated reports and forecasting to determine what products are not performing up to par. As a business owner, utilizing data analytic tools would be cost-effective by tracking a dull tool or software that’s going to be out dated soon. As a result, this could mean less interruption of your business and faster tracking of failing devices.
Utilizing data analytics also allows you to recognize products that aren’t selling or performing as well. For instance, maybe it will be time to remove these old shirts that were in fashion from the 1950s.
These powerful analytic tools uses complex algorithms to personalize the content on your website to be tailored to each customer based on their gender, location and what section they last visited. Each profile of your customer is tailored to their own site. That’s really cool! Now everyone is familiar with Amazon, right. Amazon is a great example of web customization, which uses real time item-based collaborative filtering to insinuate ‘customers who bought this item also bought’ or ‘customers also bought these other items.’ I can’t tell you how many times I bought those other items. I’m just so gullible when it comes to bags.
Re-invent your Products
Data analytics can help you improve and understand how well your products are doing. You can also adapt your marketing strategy if needed to reach a wider audience in other locations or different demographic groups.
These tools can help you to determine and test different markets by minimizing risk. It permits greater efficiency in terms of making minor changes while maintaining productivity.
Implement Risk Analysis
Being a successful company also avoids risky pitfalls. What do I mean? Being aware of the social and economic factors of today’s world is crucial to staying afloat. By using predictive analytics, you’re able to examine social media, such as Facebook and Twitter to keep up with the latest developments in your industry. You can also observe newspaper reports and other articles to keep an eye on your market. Not to mention keeping tabs on your vendors, customers and suppliers, which is another advantage for using Big Data. This lets you be in tune and take necessary action when the going gets tough.