Modern enterprises have to collect and analyze more data than ever before, and thanks to the rise of big data, it’s no longer possible to even do this using legacy systems or traditional means. Organizations aren’t just collecting data from financial transactions and customer behavior anymore, although these things are still extremely important. These days, a data analyst also has to contend with events on the company website, data from social media interactions, streaming analytics from IoT devices, and much more.
This constant bombardment of data has led to the creation of the data science field, and any modern organization has to rely on it. What makes big data even more intimidating is the fact that raw data is difficult to make sense out of if you aren’t a data scientist. Fortunately, there are ways that even beginners in the data science world can start monetizing their data properly. This is made possible through advanced data analytics solutions. Here are just three ways that data analytics can help you improve your business.
1. Better Business Intelligence
Business intelligence (BI) is the practice of using technology to collect business data and turn it into actionable insights that help you improve your business processes. For example, a basic part of business intelligence is determining who your target audience should be for each product and service.
With a business intelligence system, you can analyze sales figures and customer data to determine what your best-selling products are and who exactly is buying them. This can help you segment your customer pools and make promotions targeted at each customer segment. Data analysis also helps you determine what products to design next and gives you insight into the best ways to test them.
BI is the lifeblood of a market research information system (MRIS). An MRIS can collect primary and secondary research for you and even present findings in simple data visualizations. Information from financial journals, industry reports, and even competitors can help you make better business decisions. With a combination of historical and current customer data, you can even use predictive analytics to predict future customer behavior and gain a competitive advantage.
2. Reduced Business Costs
No matter what kind of business you’re running, it’s crucial that you’re using all your resources as effectively as possible. Data analytics is great for finding inefficiencies in your workflow, so you can address them. You already know how to find who your best customers are, but you can guide decision-making even better by knowing where they are.
Geolocation data can be used to learn where the majority of your customers are and the paths they take to purchase your products. This is particularly good for retail analysis. You can ensure that only the inventory you actually need is delivered to each store, which makes management easier and saves money.
Of course, this data can also help you improve your supply chain. Thanks to IoT-enabled GPS trackers, fleet managers can use data gathered from trucks to identify any areas that cause slowdowns and plan better routes. The more efficient your supply chain is, the more efficient your overall business performance.
3. Personalized Customer Service
While data is an extremely important resource for your business, nothing is more important than your customers. These days, if you want to really impress customers, you need a way to personalize your service. Fortunately, the customer data you collect via your customer relationship management (CRM) system can be used for email marketing to make special offers to repeat customers.
This customer data can also help you personalize your customer support. Since your support agents will be equipped with data for each customer, they’ll be able to use past interactions to guide new ones faster and create memorable customer experiences.