Table of Content:
Data Analytics Overview
Data analytics is becoming a higher priority for businesses as more and more data is constantly being created every day. On social media alone you have:
– More than 500 million tweets a day
With all this data being created, how can we keep up if we don’t have some sort of plan for data analytics?
Many businesses see this need and are taking the necessary steps to gain an edge with all this data. Regardless if you are an established business or a startup, data analytics will benefit your growth and get you ahead in your industry.
Leveraging data analytics, companies such as Google, Tesla, and Uber have broken out into new markets, have engaged with their consumers to build a relationship.
We see that data analytics is important, but what is it really?
What is Data Analytics
To be more thorough, data analytics applies an algorithmic or mechanical process to gain an understanding of the data set.
For example, looking for meaningful correlations within a data set; such as noticing that there is a spike in male customers buying chocolates a few days prior to the 14th of February, based on data sets of the past.
Data analytics is heavily used in many industries to ensure businesses are able to make an informed decision, rather than a decision based on guessing.
Data Analytics mainly focuses on the art of inference, the methodology of deriving supportive conclusions solely based on the knowledge of the researcher.
So how is it done? Take a look below at how the examination company data can significantly contribute to the ultimate growth of businesses.
Using Data Analytics
As our world advances, data has become the key to gaining a competitive advantage; meaning the competitiveness of a company against others will highly depend on how strategic it can make use data, analyze and bring in new technologies.
The International Institute for Analytics stated that
By 2020, businesses structured upon a foundation of good data will be expecting $430 billion in productivity benefits over those who do not.
Clearly, data should be a priority as it is a strong business asset. It is defying and revolutionizing the way companies market their brand and how it further operates, across the different sectors of businesses and industries.
Regardless of the size, every business now needs to adapt to a data business.
However, if all organizations are running data businesses, each and every one of these companies would therefore in proper need of a robust and effective plan.
It All Starts with Strategy
A clear, concise data strategy is crucial considering the immense volume of data these days. Businesses can easily get too caught up in picking up information, without really knowing how it fits into their brand and model.
Some get frustrated and overwhelmed by the limitless options that they bury their faces into their palms in frustration. Neither represents a savvy way to run a business.
For all businesses, start with a strategy before looking at the data. During this stage, all sorts of data are available, your existing archive of data, the data collected on your competitors, or a new edition of data is surfacing; none of it matters.
A sturdy data strategy is never about what data is readily or potentially available – it’s about the goals and purposes your business aims to achieve, and how data can help you get there.
Hence, to avoid drowning in an ocean of data, companies need to instigate the right strategy that navigates the data they really need in order to reach their objective.
To properly utilize data for strategy, it must address a specific need of the business, which orchestrates the organization to fulfill its intent, generating genuine value.
This means, before collecting and analyzing the data, you will first need to define the core challenges and business-critical questions that desperately need answering.
Many organizations that have data strategies are merely using it within a few areas of their business, such as marketing and sales. That’s not enough.
Every business needs a data plan that tackles all important aspects of the business brand.
Unfortunately, there is still a widespread perception of some business executives that data and analytics are purely an IT matter. Along with all IT matters, this means that they don’t really need to grasp how it works.
To them, it seems much easier and convenient to know what data analytics does – how it might drive success – and pump money into it.
One should also remember that no one type of data set is inherently better than all the others. Your business should always be the heart of it all, and the data mindfully used is for the improvement and productivity of your organization.
What’s best for you, might not be the case for other businesses, and this applies vice versa.
With an ever-growing amount of data available currently, the trick is to stick to the exact, specific details that will best benefit your company, and push it further.
Critical Aspects of Good Data and Analytics Strategies
To create an effective approach to data and analytics strategy, business leaders need to evaluate many factors. Here are the critical points in a solid data strategy:
- Goal-Driven Data – To find suitable data that inclines towards your company’s ideals , you must first establish goals and decide how you would want to use data to achieve them. You may need certain types of data designed to achieve certain goals and different types of data for others.
- Sourcing – Having identified what you need with the data sets, it is now time to think about ways of getting the necessary data to meet all those needs. You can do this by accessing or purchasing outsource data, using internal existing data and implementing new data collection methods.
- Data to Insights – Now you need to formulate how you will apply analytics to your data to extract and receive business-critical insights that help with rational decision making, improving and enhancing company operations and generating profitable margins.
- Analytical Software – Having chosen the full blueprint of your data usage, the next step in creating a data strategy is taking into account what sort of analytical software you should be using to transform your data and turn it into valuable insights.
- Competent Data Analyses – It is essential to cultivate certain skills in order to obtain the most out of data. There are two routes to thrive to achieve analytical competencies: boosting the skill sets and capabilities of your in-house talent, and outsourcing the data analysis.
- Data Laws – Organizations should keep in mind the legal and regulatory obligations when storing data. It is consequential for businesses to factor any means of data ownership, privacy and security into their data strategy. Data could go from a huge asset to a huge liability when failing to address any related issues.
Why You Should Use Data Analytics
Sustaining smooth business operations and yielding productivity on a daily basis is the foundational purpose of any company. A business would fail to be a business without an optimal level of functional efficiency.
Usage of analytical tools would provide tremendous benefits in making sense of raw data, pinpoint and improve flaws, as well as assist in risk management.
Further review of a business’ raw data gives way for a reflective understanding of where an organization is lacking in its work.
Data analytics are also able to produce results that are able to forecast customer demands, which will prepare the company to adjust its position for the future.
Data assessment can be used as a tool in financial and accounting matters, easing the course of budgeting as well as managing projects.
When every risk can be assessed through reliable analytics, businesses are able to be more confident and adventurous when dealing with financial hurdles.
This flexibility and potential to acknowledge any risk will help in business growth.
Marketing & Customer Reach
Social media has become the ultimate source of data, vastly bringing increasing progress in marketing efforts.
Organizations are able to understand their audience more and recognize what strategies would be successful in marketing their brand.
Professional data analysts are able to use analytic tools to derive and determine many inferences about a business’ potential and consumer base.
In a marketing scheme, this data is a goldmine.
Organizations are now capable of knowing the opinions of their consumers, especially areas of dislike. This is where engagement metrics come into play.
Business executives are able to find out who is talking and commenting about their companies, and who is sharing their content with others.
Known as social media listening (or social media monitoring), this method is able to collect insights on the target audience that are sharing, commenting and influenced the most by the business.
Marketing campaigns and content are then tailored to perfection for them.
Other suggested metrics would be click-through and bounce rate. These metrics help measure the success rate of a company’s marketing and content campaigns.
Click through rate displays how much traffic is going through a landing page of an organization, whereas a bounce rate shows when a visitor leaves the site after scrolling through the page they landed upon.
It would be more comprehensive when both metrics are used together.
This system is significant for a business as there might be a certain volume of its website traffic that are accidental clicks or indications that the site needs to be optimized to be more user-friendly.
The importance of search engine optimization is stressed when Websauce Studio states:
When you provide the best value to the users, the return is a free spot at the top.
This means that search engine optimization not only makes your website user-friendly, but it ranks you higher in Google’s search engine results page — reaching more customers and prompting a better click-through rate.
Big data and data analytics is too costly to be ignored by any business.
Data is being produced every day by businesses, and to interpret data is to understand its current standpoint in business and steps to be taken ahead.
If a business wishes to grow and improve, tracing data analytics will provide the versatility and the foresight for it to expand most of its aspects.