Whoever coined the phrase “knowledge is power” was certainly on to something. The business world is a prime example of how the right information can propel a person or organization forward, which is why large and small businesses invest billions of dollars in big data every year. The chances are you’ve heard of data analytics, but what comes to mind when you think of it? Do you see a bunch of boring numbers and statistics, or do you see a matrix of data that can take your company to new heights?
We can’t blame you if you think of boring stats and numbers when you hear the term analytics, but there’s much more to this phenomenon than meets the eye. It’s a tool that helps business leaders make quicker and better decisions that directly impact their company’s bottom line, and it’s the most valuable resource in the business world. So, how can big data help you to make better business decisions? Continue reading to learn some of the many ways analytics empowers business users to become sages of commerce.
Data analytics helps data scientists and business users to make accurate predictions.
Have you ever considered what it would be like to be able to predict the future? Can you imagine how that would help you in the business world if you could see trends coming a mile away and plan accordingly? Big data may not be a crystal ball, but it enables data scientists and analysts to make predictions about future events and develop solutions to prepare for what’s coming. Predictive analytics uses a data science process that utilizes real-time and historical data to decipher what will happen next. The next step in the process is applying prescriptive analytics to find a viable solution for the coming event.
Data science provides insights to help improve customer experiences.
As you know, customer satisfaction is the clearest indicator of a company’s success. Happy customers equal a successful business, which is why companies invest heavily in getting insights into customer behavior. Consumers control the economy, and many companies have pivoted in recent years to become customer-centric companies. These companies rely heavily on data analysis to find ways to improve their customer experience.
Companies use data science to improve business processes.
So far, we’ve covered how data science helps to make better decisions regarding customer relationships and future events, but many companies also use it to get insights into their business processes. One thing all business leaders strive for is optimal business efficiency, and when using the right analytical model, business users are able to extract metrics that can help them refine their company’s best practices and become more efficient.
It enables business users to more precisely target their customer base.
Another common data science application is using big data for marketing purposes. Marketing teams put a lot of effort into crafting engaging campaigns, but it does them no good if their content falls on deaf ears or blind eyes—in other words, the wrong audience. Your marketing and sales team can get an idea of your company’s ideal buyer persona and target them on the digital platforms they use most and create targeted marketing campaigns for individuals.
As you can see, there are many ways data science helps business users make better decisions regarding the direction of their company and business operations. In fact, in the case of machine learning, data science helps artificial intelligence to make wise business decisions, too. Furthermore, big data provides actionable insights that help companies improve their customer experience, business processes, supply chain management, and much more. Seeing the many ways in which big data positively impacts decision-making begs the question, how have you made decisions for so long without it?