Did you know that 2.5 quintillion bytes of data are created every single day?
However, making sense of this vast volume of data and sorting through what’s useful and what’s not is the big challenge.
Extracting and leveraging this data into powerful insights is the reason why data analytics are essential for a company’s success today.
Let’s look at five ways data analytics is applied in businesses.
- Make informed business decisions
Whether it’s planning a marketing campaign or developing new products, companies can use the insights gained from data analytics to make informed decisions that lead to a better outcome.
For example, data about your customer’s engagement with a social media post and how often they open a marketing email can help gauge the effectiveness of a marketing strategy and inform retargeting efforts.
- Personalise customer experience
Data analytics can give businesses valuable insights about their customers, such as their habits, preferences, demographics, and more.
By identifying trends in customer behaviour, businesses can provide a more personalised experience and build stronger relationships with customers. For example, recommending specific products at checkout to increase sales, and understanding your customer’s communication preferences.
- Determine financial trends
Finance is undoubtedly one of the most important aspects of a business. Data on your company’s cash flow, assets, and debts can be used to create reports and budgets, generate forecasts, and analyse financial growth or decline.
Additionally, predictive analysis can be used to forecast revenue and extract powerful insights that help businesses navigate their way through tricky terrain.
- Predict future market trends
Analysing data on a larger scale can help businesses identify emerging trends in their market, allowing them to make decisions to get ahead of the curve.
For instance, research by Nielson has revealed that a whopping 81% of consumers feel strongly that companies should help improve the environment. This emerging trend has led many businesses to adopt a more environmentally friendly and humanitarian approach.
- Enhance security
Nobody is immune to data security threats. Fortunately, businesses can use data analytics to diagnose the cause of past breaches, locate vulnerabilities, and patch them to prevent future attacks.
The Bottom Line
Data is at the core of everything we do today. As our world becomes increasingly reliant on information, data analytics can help businesses make good use of data to drive decision-making.
This in turn streamlines processes, increases conversions, and saves more money and time on insights that actually make a difference.
Learn more about how our data experts at Polar Packet can turn your raw data into actionable information that you can rely on.