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Top 5 ways to enhance the effectiveness of data analytics in a business

Learn how Data Analytics has made a distinct place for ensuring business effectiveness via reinforced strategization and the role AI has to play in the same.

“Fortune 500 companies are investing tens of billions of dollars in Big Data initiatives for a simple reason: to save money and gain market share by accurately predicting future behavior rather than guessing at it. Rapidly advancing analytics-based solutions have changed how forward-thinking employers manage their workforces to help them become more productive and profitable.”

Business Intelligence and Data Analytics are an essential part of all successful business ventures. Business Analytics has its dedicated market in the industry – which is often sought after method to skip the guesswork and increases and improves the pace of growth. With the help of Data Analytics, you will be able to get invaluable insights into your business. This will help you tweak your strategies and investments so that your ROI remains exceptionally attractive.  

Long back in the mid-1900s, Astronauts landed on the moon by using a tiny fraction of the data on personal computers of today. The amount of data we are producing every day and accessing is growing exponentially, projected to double every two years until 2020. Majority of the digital information falling through the cracks, taking valuable insights with it.

According to Bain & Company, only 4% of companies make good use of data analytics – leveraging the right combination of people, tools and data with the intent to drive improvements.

Let’s have a look at the ways to enhance the effectiveness of data analytics in a business:

Helps You to Set Realistic Goals

To get the right information and results – you need to set goals. They should be solid and strong, you can’t keep shifting your goals and targets from time to time. And for this, you will need the help of analytics. With analytics, you will be able to assemble data from historic trends and past activities. You will have a clear idea of what your goals should be. This will ensure that you don’t miss an opportunity to help your business grow. Analytics will give you predictions on both your weaknesses and strengths for your business.  

Supports in Decision Making

The decision maker’s intuition and experiences are the needed factors but at times your guts won’t help you in making your business successful. You will need concrete data and analysis of the data as well. The data analytics will help you make good decisions about inventory management, pricing strategies, and other businesses. Like for instance, when it comes to hiring people, actionable data will help you assess how many people to hire and how best to deploy them. Businesses – that use data are almost 3 times as likely to report that their decision-making has improved. With the help of data analytics in your decisions – you will reduce risks.

Helps you Finding Ideal Demographic

With the help of analytics, you can easily find the ideal demographic. Data from your existing customer base and social media are valuable sources of information. By using analytics to study your audience, you will get rich and insightful information. You can use the tools like Google Analytics for your website. Facebook and other social media platforms also offer solutions for businesses. You can take the help of analytics plugins to your site to understand user behavior.

For instance, you are using Google Analytics to your website, to understand the user behavior – where you can figure out the user behavior and interactions of your customer. What all products are getting most viewed or purchased. What all content creates the most engagement. And once you get to know ‘What is your ideal demographic, you can provide tailored content solutions to your customers.’

Helps You To Create Mass Personalization

After segmenting the audience, you can create mass personalization, you can set up tools that will automatically and effectively personalize email marketing content. With the help of the same, you can automate and personalize the email marketing content – and target large groups of people and create personalization at the same time. It will boost your business’s reach and impact to drive up the conversions.

According to 74% of marketers – targeted personalization drives up customer engagement. And by using the data – you can set up relevant experiences across your customer’s purchase journey.

Increases Your Revenue and Lower Your Costs

Analytics plays a bigger role in decreasing business costs and increasing revenue. It is important to ensure that you are using important resources as effectively as possible. As per one of the studies, companies – which adopt data-driven marketing strategies can increase revenue by 20% and reduce cost by 30%. Analytics is most useful to monitor e-commerce activities, ad campaigns, and multi-funnel channels. It will help you to measure their performance and effectiveness, making it easy to see what works and what doesn’t

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