by Madhurjya Chowdhury
February 26, 2022
Data analytics in business plays a crucial role in decision making and more
The vast diversity of data generated by businesses includes important insights, and data analytics is the key to unlocking them. Data analytics can help a business in everything from customizing a marketing pitch for a specific customer to recognizing and reducing business risk.
Five Benefits of Using Data Analytics in Business
Personalize the customer experience
Customer data is collected by businesses through a variety of channels, including physical retail, e-commerce, and social media. Businesses can gain insights into consumer behavior and provide a more personalized experience by using data analytics to generate comprehensive customer profiles from this information.
Consider a retail clothing store that has both online and offline presence. The business can evaluate its sales data in conjunction with data from its social media pages, then design targeted social media campaigns to increase online purchases for product categories that customers are already inclined towards.
Organizations can further optimize the customer experience by running behavioral analysis models on customer data.
Inform business decision making
Data analytics can help companies guide their business decisions and reduce financial losses. Predictive analytics can anticipate what might happen in response to business changes, while prescriptive analytics can recommend how the business should respond to those changes.
For example, a business can simulate changes in prices or product offerings to see how they will affect customer demand. The A/B testing of changes in product offers makes it possible to validate the hypotheses generated by such models. After collecting sales data on updated products, organizations can use data analytics approaches to evaluate the performance of changes and visualize the results to help decision makers decide whether or not to apply the changes. to the whole company.
Data analytics can help organizations improve their operational efficiency. Data collection and supply chain analysis can reveal where manufacturing delays or bottlenecks are occurring and help identify where future problems may arise. If a demand projection indicates that a certain supplier will not be able to handle the volume required for the Christmas period, a company can supplement or replace that supplier to avoid production delays.
Additionally, many organizations, especially those in retail, struggle to optimize inventory levels. Based on characteristics such as seasonality, holidays, and secular patterns, data analysis can help determine the optimal offering for all of a company’s services.
Mitigate risks and manage setbacks
In business, there are risks everywhere. Theft from customers or staff, uncollected debts, worker safety and legal liability are among them. Data analysis can help a business assess risk and take preventative action. For example, a retail chain might use a propensity model, which is a statistical method for predicting future behaviors or events, to find out which stores are most prone to theft. The company can then use this data to determine the amount of security needed in stores, and also whether to divest from any location.
Data security issues affect every business. By analyzing and visualizing relevant data, organizations can use data analytics to diagnose the reasons for previous data breaches. For example, IT can use data analytics programs to analyze, process, and visualize audit logs to uncover the path and origins of an incident.
Additionally, IT departments can use statistical models to prevent future attacks. Attacks frequently involve aberrant access behavior, especially in load-based attacks like a Distributed Denial of Service (DDoS) attack. Organizations can configure these models to run indefinitely, with built-in monitoring and notification systems to detect and report anomalies so security professionals can act quickly.
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