If you haven’t heard about Data Analytics or don’t understand what it is and why you need it, then this guide is for you. Data is one of the most important assets in the business world today.
It is very valuable to all business brands and is needed to make informed decisions and improve brand growth in the long run. However, how can business brands use data analytics in a way to yield results? Read on to find out.
Data analytics involves exploring and examining large amounts of data in a way to uncover the trends, hidden patterns, or correlations inherent in the data, and also to give insights to business owners to make proper business decisions.
Data analytics reveals the trends and metrics that would otherwise be lost in large amounts of data. The generated result can then be used to optimize business processes to increase overall business efficiency.
In summary, data analytics is the act and science of analyzing raw data to make meaningful conclusions about that information.
There are several different steps involved in data analytics, these are (in the right sequence):
- Determining the data requirements and how the data is separated or grouped – gender, age, income, demographic, and so on. The data values may also be numerical, non-numeric, or divided by category.
- The second step involves the data collection process. Data can be collected from and using a variety of sources, which include online sources, environmental sources, personnel, cameras, and so on. Web scraping services is very popular among data analyst for automated data collection from various websites.
- After data collation, the next step is data organization. The collected data is neatly organized in preparation for analysis. Data organization can be done using the Excel spreadsheet or any other spreadsheet application that can handle statistical data.
- The next step is data cleaning. This involves scrubbing and checking the data to ensure that there is no error, duplication, or incomplete data. This step helps to eliminate any inaccuracy in the data before it is subjected to analysis.
- The final step is the data analysis and this can be carried out using the Excel spreadsheet or any other data analysis tool.
Now that you’ve learned the various steps involved in data analytics, let’s go to how brands can use data analytics for their business growth:
Brands Can Use Data Analytics to Boost Customer Acquisition and Retention
Another important asset that every business depends on is its customers. There is no single successful business without an established customer base. However, competition is constantly increasing and customer preferences are always changing.
Any business that wants to remain relevant must not overlook the two points above. Any business that is slow to understand customer preferences or learn what customers are looking for may begin to offer products that customers no longer have an interest in. In the long-run, there would be a loss of customers and a halt to business success. For example, you are amazon seller so you must keep watch on best selling products by knowing sales rank. Same way if you are successful seller then must know about customers feedback and reviews using amazon data scraper like technology. Without analysis it is impossible for all business to touch the sky.
Luckily, business brands can use data analytics to identify and observe changes, patterns, or trends in customer behavior and preferences. Business owners can then use this result to understand modern-day customers and derive critical behavioral insights. It will help them to deliver what the customers want as well as what they need to do to retain their current customer base and boost the acquisition of new customers.
Brands Can Use Data Analytics to Solve Advertisers Problem and Offer Marketing Insights
Data analytics can help business owners to change their business operations. For instance, it can be used to match customer expectations, change the business’s product line, and improve marketing campaigns.
Gaining insights on customer behavior requires collecting and analyzing customers’ data. The customers’ data can be analyzed to achieve more personalized and targeted campaigns.
A more focused and targeted campaign will not only ensure efficiency, solve advertisers’ problems but also help any business to save money. This is because they would be able to target high-potential customers with the right products and avoid ad fraud problems.
Brands Can Use Data Analytics for Risk Management
Because businesses are exposed to unprecedented times and highly risky environments, a well-laid risk management plan is very important for any business regardless of the sector. Hence, for any business to remain profitable, it must be able to foresee potential risks and mitigate it before it occurs.
Data analytics can contribute greatly to the development of risk management solutions as it allows business owners to quantify and model risks that they face every day. With data analytics, businesses can ensure that areas of weaknesses or potential risks are identified.
Brands Can Use Data Analytics to Drive Innovations and Product Development
Data analytics can also help businesses to innovate and redevelop or improve their products. Before businesses could design new product lines or re-design their existing products, they need to start by collecting as much data as possible to identify and study customer needs.
Some of the necessary data to track and collect include data on their products, their competitors, and customer feedback. All these can be analyzed to ensure that logical reasoning is applied before any action plan is implemented.
Brands Can Use Data Analytics in Supply Chain Management
Suppliers need data for insights, clarity, and greater accuracy. The proper implementation of data analytics can enable suppliers to achieve contextual intelligence across the supply chains, which is necessary for supply chain success and to escape any constraints that were faced earlier.
As stated above, data analytics is an important investment for any business that wants to grow or maintain its growth. The proper implementation of data analytics can help businesses to achieve a competitive advantage, reduce costs of operation, and drive customer retention.
There are several different sources of customer/consumer data that businesses can leverage. Is your business already leveraging data analytics? Does your business have big data analytics in place? It’s up to you to ensure that you implement appropriate data analytics for your business. You can take advantage of data analytics too
Don’t forget, implementing data analytics the right way can benefit your business in the ways explained above.