There is no denying that businesses profit from using data analytics. In today’s competitive world, satisfying customers and increasing revenue are becoming a priority for any business. Data analytics helps the business just to that. As businesses become aware of the value of data analytics, they tend to gravitate towards it.
Here I’ve consolidated some of the benefits that business gets from using data analytics.
Better Decision making
With the vast amount of business data available these days, a business can make use of it to make better decisions. Prescriptive Analytics is a part of data analytics that analyzes the past data for a scenario and guides the business towards the best course of action. It helps the business in avoiding risk and make better decisions.
Traditionally companies have used intuition and basic research to make critical business decisions. But with the amount of data available now, it is appropriate for a business to use analytics to help them make better decisions. It also helps the companies to avoid potential risks that may happen when making a decision. Prescriptive analytics with predictive analytics analyze the past to find insights and make the companies better in the future by making better decisions.
Prescriptive analytics can be especially useful in the healthcare industry to evaluate the data and make better decisions. IBM Decision Optimization software does exactly this by helping many healthcare organizations to make optimized decisions.
Analytics helps to optimize the process in every area of business from stock management to sales. Delivering a service or product is a routine task for a company. But with analytics, a company can measure if they are able to meet customer demand. Also, they can find future demand for a service or product. With this measurement, they can better adjust their operations to meet the demand.
Also, by finding the demand for a product, a company can better optimize their inventory and manufacturing process. This measurement also helps the business or a company to better optimize the prize of a product throughout its lifecycle to increase the profit. The analytics is even applied to the supply chain management and manufacturing process of a business. It helps in optimizing the process by driving down the cost of manufacturing and supply chain.
Data analytics is popular in the retail business where it has increased the performance significantly. Walmart is one such company to use data analytics to increase their sales and optimize their process.
Customer satisfaction is one of the things that all the business are trying to achieve. Better customer satisfaction leads to better revenue. Data analytics helps to create a personalized experience for different customers using customer data.
Businesses are trying to personalize the experience throughout the customer’s journey of interactions with them. From clicking the website to buying a product, the customer’s journey is personalized. It is possible with the help of predictive analytics. Finding patterns between the customers can lead the business to predict the potential customer’s interaction with them. Using this insight, a business can successfully personalize the experience for a customer within the business.
In today’s world, almost all companies using data analytics are giving a personalized experience to the customer. It is the main reason why companies like Spotify, Netflix, and Amazon are on top of their game. They were the first in their domain to extensively use data analytics to give a personalized recommendation to the customers.
Customers are expecting companies to know them and give them personalized recommendations even though it may lead to companies owning customer data. So, it has become a necessity for all the business to use data analytics in order to stay above the competition.
I’ve just listed the primary benefits of data analytics to a company. Apart from this, data analytics helps in creating quality data and making it easy to access it, increases the quality of services offered, implements preventive measures for potential risks, and much more. Many companies have used data analytics only on a small scale. Still, there is room left for data analytics to grow and be useful in many ways to an organization.
Business is important to a country for various reasons like boosting the economy, increasing jobs, etc. And Business needs some strategy to improve its performance and growth. This is where data analytics comes in. Instead of just wasting the data, a company can use it in much more valuable ways using analytics. In my opinion, Analytics is the biggest change for growth that happened to any business in the past decade. With small to medium businesses becoming aware of it, analytics is only poised to grow in this decade.