In the current burgeoning times, data run businesses all over the world. With social media and the internet being more integrated, big data and data in general unbeatably drive company growth. This puts forth utilizing advanced data analytics solutions for the best results.
Businesses leveraging big data analytics continue pulling ahead and showing higher growth. They can neatly evaluate their consumer base and thus cater to demands more effectively. The heightened benefit is that using existing data; they can even create demand rather than just meeting the existing needs of their customers.
This has given rise to the era of data-driven business decisions. Some of the best examples of companies utilizing big data are Amazon and Walmart, which continue thriving on models that remain customer-centric due to big data availability.
Amazon and Walmart’s unprecedented success is credited to the reason that both go beyond merely collecting data. They efficiently use the data to their advantage, building comprehensive business models using data analytics. This brings us to the main point: how do data analytics cause business growth?
How Data Analytics Drive Better Business Decisions
Understanding this requires understanding data analytics concerning the private and public sectors. Making more significant, data-driven business decisions requires cognitive computing that can streamline operations in both sectors. This improves the efficiency of the company while ensuring that it can better cater to its customers.
Let us take a closer look at each sector.
Data-Driven Business Decisions and the Private Sector
Private companies rely on advanced data analytics solutions for smooth operations. This happens on three fronts: the customer, the company, and the overall security.
The Customer’s Front: Through a combination of data collection and machine learning, businesses can track and analyze a customer’s interaction with the website. This allows them to gain insights regarding the customer’s purchasing habits and enable them to identify blind spots in their personalized marketing campaign towards specific customers. Fixing these ensures a better overall customer experience. Leveraging big data analytics this way also leads to more customized experiences for customers. Businesses can cater to their customers while keeping an eye on the competition, adjusting prices, and offering incentives in real-time, accordingly.
The Company’s Front: Companies can also use big data to optimize their supply chain operations. This is through improving employee efficiency by identifying areas in the everyday workflow where efficiency is lost. Having a comprehensive human resources department is essential to achieve such an outcome.
The Security Front: Specifically, for companies in the financial sector, data analytics allows them to identify potential blind spots in their security. How easy they are to breach, how susceptible they are to fraud threats, etc. are problems which data can resolve. Additionally, they can also monitor consumer behaviors, detect any suspicious transactions, and flag accounts accordingly to prevent fraud as early as possible.
Data-Driven Business Decisions and the Public Sector
The main advantage of working with data analytics is that it deals with hard facts. The data analyzed are usually statistics. In the public sector, such objectivity is rewarded through progressive policy-making through data collection. There is no grey area of data interpretation. Instead, agencies use data to better understand the people – i.e., their consumers – and accordingly provide them accordingly.
That said, data analytics often requires a budget, and public agencies do not always have access to the necessary funds. Additionally, the sheer volume of population-based data can be overwhelming for organizations, especially when working with hunger or homelessness. Here, learning how to sift through data effectively is an important skill.
Public sector enterprises can, however, use big data to connect with the public. Google Analytics is especially helpful in this regard. It gives companies insights about bounce rates or navigation difficulties that often need resolution on public agency websites.
Whether private or public, companies often benefit from leveraging big data analytics. They can achieve this through a simple process:
- Collecting appropriate data through various channels such as social media.
- Evaluating the real value of data by understanding its accuracy.
- Getting better insights about existing processes and online company statistics.
- Investing in IT department expansions so data analysts are included.
- Visualizing data for easier interpretation using Google Charts or Datawrapper.
- Making concrete business decisions based on this available data.
There is no second thought in arriving to the conclusion that using big data and making data-driven decisions directly contribute to a better, more efficient company environment and business success thereof.