How can data analytics help your business grow?

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Author: Palak Kumar

Data is powerful, it can help businesses understand customer behaviour patterns, perform predictions, and improve advertising campaigns. Though data has potential, however, raw data is not understandable directly. We need certain tools and processes to analyse the data and get meaningful conclusions.

Customer behaviour data is a highly valuable type of information. It refers to data that includes the specific actions that users take when they use your service or product or access your content. For example, they might make a purchase, click on an advertisement, comment, or like your social media posts, etc. Such data can help reveal customer affinities. They might even express their interest in a topic by reading about it on your website or express interest in a product by clicking on its advertisement. Such data can later also be used in retargeting campaigns.

Data can be in the form of survey responses, social media likes, views on blogs, clicking actions on advertisements, demographics of the people, and more. Combining the data obtained from customer actions with their demographics can help businesses define customer segments they need to target.

The primary analytics applications in business are descriptive, diagnostic, predictive, and prescriptive analytics. Benefits of data analytics for businesses:

• Informed Decision Making Insights from data analytics can help make informed decisions and eliminate guesswork. It results in better planning of marketing campaigns and helps to choose the content to create and develop better products.
• Effective Marketing Data analytics can give you useful insights into how your campaigns are performing so that you can fine-tune them and get better results. It also tells you about the engagement and audience segments you are most likely to iterate with. This will result in better targeting marketing and lead to lesser ad waste while getting more conversions.
• Better Customer Service Data can help reveal customer’s preferences, interests, and concerns. Data analytics gives more insights into your customers and allows you to tailor and personalize the customer service according to their needs and build stronger relationships with them.
• Efficient operations Data analytics can help companies streamline their processes, save money, and boost the bottom line. Since it gives you a better understanding of your customers and their wants, less time is wasted on creating ads and content that does not match the audience's interest. Hence, money is saved while results are improved.

Here is an example of how a business can collect data, analyse it, and help improve the outcomes of the business. There is a marketer who is running an online ad campaign to promote a new laptop. He can target the ad to people who bought laptops with similar features. As the campaign runs, the marketer uses data analytics and discovers that many of the customers are interested in gaming. Using this information, he can finetune his advertisement to focus on people who are into gaming

Financial sectors were one of the earliest adopters of data analytics. Data analytics has played a huge role in the banking and finance industries where it was used to predict market trends and perform risk analysis. Credit scores are an example of data analytics that affect everyone. These scores use many data points to determine the lending risk. Data analytics is also used to detect and prevent fraud to improve efficiency and reduce the risk for financial institutions.

Pharma companies use data analytics to understand their target market and predict sales of the products. This industry has been revolutionized by data analytics, drug discovery is a highly complex task and has many variables. Machine learning can improve drug discovery.

Data analytics is being used with great success in a number of different fields. It can be used to achieve a competitive advantage, reduced operational costs, and increase customer retention. As technological advancements continue, data is becoming readily available to all organizations. Hence, businesses that ignore data analytics do so at their own peril.

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