What is data analytics and why is it important for your company?

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Date: 8 January 2021

A marketing team look at the latest campaign data

Imagine you could use technology to make a conclusion about somebody or something based on the information gathered by your company. It's easy to do these days, and it enables you to increase your profits by improving services, products, or your marketing strategy.

There are many ways to profit from your business data. The information you collect every day is unique to your business and customers and can be important. By investing in analytics tools, you can discover patterns where you might not have expected them. You can use this data to become more competitive and make your company more effective.

You will be collecting data every day in various ways. You will be getting data from each of your transactions (traditional and ecommerce), from surveys, business websites, apps, and marketing campaigns. In short, you may already have access to a massive amount of data and might not even be using it. It's time to change that! 

Data analytics is the process of examining datasets. In reality, all of us carry out simple analysis all the time, but computers are able to process much more data and find the similarities which could be easily missed in person. The goal is to find useful insights for your company – answers to difficult questions. 

There are a lot of specialised systems and software you can use to improve your company's internal processes, products, customer service and the accuracy of your marketing campaigns. Learn how data analysis can help you develop your company.

How data analysis can change your business – the advantages of data analytics

Reducing risks

Risk is everywhere in business – no matter the industry or the size of your company. Small, medium, large – all businesses face challenges. What are those challenges? Bad investments, employee or customer theft, malware attack, sensitive data leaks and many, many more. 

We're not here to frighten you but to help you realise that there are lots of risks. Data analytics will allow you to prevent some of them - or, as a minimum, prepare for their outcomes. Statistical models can be used to predict future actions or events. For example, determining which stores are more likely to targeted by thieves. With this knowledge it's easier to dispatch the right number of security guards to each store.

Improving products and making major business decisions 

What to produce, how to produce it and how much of it you should try to sell. These are not easy decisions. All companies can use data analytics to minimise financial losses from poor decision making. DS Stream provides small, medium and large companies with analytics solutions. You can also take advantage of predictive analytics. Imagine being able to test out all of your options before actually carrying them out and learning what the outcome of those actions will be. 

Analytics systems allow you to test the changes you would like to make in a business model, or a product based on the data your company gets from its customers. Yes, your success (or possible failure) can be predicted before you take the leap, and the results of your action visualised using technology.

Increasing customers' satisfaction

If you could only know what your clients think about your products and services. Well, wonder no more. There are a number of tools you can use to collect customer data from different channels – social media, physical retail, ecommerce, surveys. In fact, it is easy to underestimate the sheer volume of information you get every day. Don't make this mistake! 

Your company can use analytics tools to analyse this data, work on the product and improve your customer service. Remember that understanding your clients' needs and expectations is crucial.

Run your marketing campaigns more effectively 

Data analytics can provide you with knowledge that will allow your marketing team to create robust marketing strategies and plan better marketing campaigns. You can learn what kinds of products should be recommended by your ecommerce stores (or you can use artificial intelligence to benefit from recommendation systems) or at the checkout in the case of traditional shopping. 

Using the right tools can give you information about which clients are most likely to interact with your campaigns and go on to buy something form you. This will help you better target your advertising.

What technology should you use to gain business insights? 

Companies have been using data analytics for many years now, so there are many technologies you can benefit from. Artificial intelligence (AI) makes it possible to create systems which simulate human intelligence, and machine learning enables apps to analyse data and predict customers preferences or actions. 

As you can see, data analytics can improve your business in many ways. However, you need proper tools to manage and process the vast amounts of information at your fingertips.

Copyright 2020. Guest article edited by the Donut Blog Team

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