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The Value of Data Analytics to Your Business
By Owain Brennan
Data analytics is a big deal. If you aren’t doing it, you’re missing out on valuable insights that could help you grow your business and make more money. In this post, we’ll show you why data analytics matters to your business.
What is data analytics?
Data analytics is the process of collecting, cleaning, transforming and modeling data to build insights. It can be used to understand your customers better. It can also be used to understand your business better by analyzing trends in sales and revenue generation. Finally, it can help you understand your competitors by analyzing their strengths and weaknesses from a financial standpoint.
Why are data analytics important to my business?
Data analytics are important to your business because they can help you understand and grow your customers, as well as track how well your company is performing.
Data analytics can help you understand the types of customers who use your products and services, which helps you decide which strategies are most effective in getting them to buy. It also lets you keep track of their purchasing habits so that if a certain demographic starts using more of a product than usual, you know what happened and whether or not it’s an anomaly.
For example: If more people from the Northeast start buying yoga pants than usual over the last few months, then maybe there’s a trend in that area towards more exercise or healthy living overall (and perhaps these people would appreciate some coupons for other health-related products). On the other hand, if no one from Newcastle has bought any yoga pants recently despite increased interest across all demographics nationwide—or worse yet if someone from Newcastle actually stopped buying them—then something must’ve gone wrong with their order process or marketing strategy that needs fixing immediately before sales suffer further losses due to negative word-of-mouth advertising online.
Data analytics reveal the real story about your business.
Data analytics is the process of collecting and understanding data to help you draw insights about your business. It can be used to answer questions like: What are our customers’ habits? Where do they come from? Who is most likely to buy our products, and when are they most likely to buy them? How much should we spend on marketing? What’s our average profit margin per product or service line?
Data analytics can help you find answers to these questions and many more by analyzing large amounts of data, including transactional records (such as point-of-sale transactions), survey responses, social media interactions with customers, customer support tickets and calls, financial information (including revenue reports), etc.
How much do businesses spend on data analytics?
Data analytics is a fast-growing sector. According to a report by IDC, the global data analytics market is expected to grow at a compound annual growth rate (CAGR) of 19% from 2020 to 2022, with an estimated value of $50.8 billion in 2022. The same report also estimates that IT spending on data analytics will grow by more than double the average IT spending growth rate over the same time period, reaching $6 billion in 2022—a CAGR of 28%.
The market for big data alone is massive: approximately 500 exabytes (500 quintillion bytes) of new data are created every day, according to research firm Digital Universe Study 2015 conducted by Intel Corporation. This translates into more than three million new tweets per minute; 180 million photos shared on Facebook; 45 million Instagram likes per day; 1 trillion emails sent daily; and thousands upon thousands of blog posts published every day—and that’s just scratching the surface!
Data analytics is an exciting area where businesses are looking for innovative ways to gain a competitive advantage through better decision-making based on insights gleaned from vast troves of information collected about their customers and company performance. With big companies like Google leading the way with very sophisticated algorithms for search rankings or ad targeting within its advertising network, it’s clear that there are opportunities in this space for smaller players too.
Data analytics will help you understand, improve and grow your business.
Data analytics is a tool for understanding your business, but it can also be a powerful instrument for improving and growing your company. Data analysts often identify opportunities for improvement in how their company operates. They might discover that certain products have a higher rate of return or that specific customers tend to purchase more frequently.
These insights can be used by management to make strategic decisions about operations. This might include adjusting prices on certain items, developing new products or services, or adding staff members who specialize in areas like customer service or sales support.
Additionally, data analytics can help businesses make better predictions about their future because it enables them to observe trends as they emerge over time. This foresight helps companies avoid unexpected issues that could otherwise lead to significant losses.
Conclusion
Data analytics is an incredible tool that can help businesses improve their performance. The more you know about your business, the better equipped you’ll be to make informed decisions and drive growth.
If you are ready to begin your organization’s journey into data analytics, contact us at SeerBI to unlock your data!
