Data Analytics: A key to Business Success

May 3, 2018 | 3834 Views

In recent years, Data Analytics have become a buzzword for every business organization as information is the crucial resource for any organization which can provide a competitive edge to the company.

As per an IBM Marketing Cloud Study, 90% of the data on the internet has been created since 2016 and today the organization is bombarded with huge data. If data is not utilized properly, it can create chaos and error in results. So, the organization is focusing more towards converting data into meaningful insights, rather on creating more data.  A huge amount of data can be converted into information useful in decision making with the help of data analytics.

Data analytics helps an organization in transformational gain rather than incremental. Data analytics has a major contribution in each functional area viz. marketing, finance, production.

During online shopping, customers' pre-purchase, during purchase and post-purchase actions depicts a lot about their behavioral pattern. The way consumer use social media platform i.e. covey a lot about their likes, dislikes, choices and preferences, lifestyle, value system, thought process etc. These data have a substantial contribution in acquiring, keeping and growing customer. Customers are like a Black box having different faces and it is the difficult task to understand them. Data analytics can be used in doing so.

Data analytics is the process of analyzing data to find out preferences, demand patterns, needs and choices and other valuable information that helps an organization to take more strategic decisions. Data analytics helps to know trends in behavior and patterns based on past learning and experiences.

The 5 ways Data analytics is used as a key to success and growth are:

  • Better customer understanding

With the help of past trends of product purchased, brands preferred, time spent on a particular thing etc. will contribute more towards understandings customers' needs and preferences. Better understanding will contribute to improved customer services and better customer relationships.

  • Desirable Customer services

Customers' feedback, and their reviews posted on various social media sites helps companies to learn more about customer's satisfaction with company's offerings. Customers' queries and Complaints provide a scope for necessary improvement. These will contribute in enhanced customer services.

  • Customer Focus

Increasing use of social media platform provides an opportunity to target specific audience such as in particular location, a particular class. particular age-group. Analysis of data available on social media provides real-time information about the customer. This contributes towards focused attention on the target group.

  • Forecasting:

Better understanding of demand patterns and behavioral trends helps to forecast potential needs. It also helps to predict behavior and actions at the different stage of customer's interaction with the company.

  • Customer Retention:

Customer retention is the most difficult tasks for any organisation because of dynamic needs and increased competitions. A critical examination of data helps to identify need gap, a scope for improvement and innovation to satisfy the changing need and preferences of the customer. This will help in the fulfillment of customer needs and expectations and maintain a long-term relationship with them.
 

Source: HOB