According to the World Economic Forum, we generated 44 zettabytes of data in 2020. That’s 4.4 trillion gigabytes of data. Yes, you read it right. The digital world generated such a huge amount of data within just a year. In fact, 90% of the existing global data was generated within just the last two years. It clearly determines the rapid pace of the data revolution and signifies how quickly the world is changing and embracing data-driven interactions.
Unfortunately, still, most businesses fail to utilize data, as a significant part of the collected information is unstructured. It is where the role of data analytics comes in. It is the art of transforming meaningless and raw data into meaningful and readable information. It further applies advanced algorithms to generate valuable insights for strategic decision-making. It can significantly improve the way we interact and deal globally. Most importantly, it can induce a paradigm shift in the way we do business.
Today, several companies use advanced technologies and analytics to identify customer needs, risk management, efficiency, and profits while developing pricing solutions, maintaining inventory, or hiring talent. In case you are new to this data realm, you have come to the right place. This article highlights different ways through which data analytics improves your business operations.
1. It helps you set SMART Goals
Data analytics helps businesses to set Specific, Measurable, Achievable, Realistic, and Timely (SMART) goals. It provides credible forecasts and helps businesspersons understand the external business environment in a better way to set SMART goals. Therefore, we see more and more business executives are now enrolling themselves in online analytics degree programs to expand their information regarding data analytics and how it works. The academic world has seen a sudden hike in demand for analytics courses and relevant literature.
Data analytics helps you to understand past data trends to gain a comprehensive outlook of the entire business market. Through data analytics, a business can devise a proper business plan right from the beginning. It further helps to ensure that you effectively use all the opportunities and provides you a realistic picture of your business goals, strengths, and weaknesses of your business strategies, and helps you prepare for future challenges. Hence, you do not waste essential business resources chasing goals that are beyond your reach in the practical world.
2. It uplifts your decision-making capabilities
According to research by PwC, data-driven organizations report radical improvements in their decision-making capabilities. The experience and intuition of the business leader are certainly of great value. However, business decisions in today’s digital age require data-driven insights. Data analytics is your cushion in this scenario. From inventory management to the right pricing strategy, it assists in all sorts of decisions that are central to your business growth.
Since human resource is the most crucial asset for any business, data analytics also plays an essential role in this domain. It generates actionable data that help you to assess your workforce and determine hiring needs accordingly. Undoubtedly, it has transformed the entire landscape of the recruitment and selection process into a modern-day talent acquisition that relies on a data-driven end-to-end recruitment process. It also helps your business to right-size your workforce and serves as a source of guidance to make better and timely decisions regarding upsizing or downsizing employees.
3. It helps you identify your online target audience
You might have an excellent business proposition, but it can still fail on digital platforms if you have not targeted the right audience segment. According to Statista, there were around 4.66 billion internet users by January 2021. Online customer bases and social media contain a plethora of valuable data. Your online presence generates innumerable data sets at every single step of online customer interaction. However, data analytics helps you identify the right target audience for your business. Moreover, you can observe your competitors through data trends too. It indirectly helps you to understand your customer segment in a better way.
Data analytics assists in using this data for your benefit. You can use various tools like Google Analytics and FoxMetrics to gather, analyze, and interpret the data collected online. Also, you can simply add their plugins to your websites and monitor user behaviour. It will help you to plan your online business strategy accordingly to boost your business’s growth.
4. It lets you create a personalized customer approach
Once you have identified your target audience, the next step is to create a personalized approach. According to research by Econsultancy, 74% of marketers believe that personalization significantly increases customer engagement. Data analytics lets you adopt mass personalization through automated recommendations and relevant content delivery for your customers.
It analyzes real-time data and creates a complementary response for your customer. It increases customer satisfaction and enhances your business reach. This way, your business attracts more potential customers from the target market segment and converts them to current customers. It further enables your business to impact the right customer touchpoints throughout the entire purchase journey, which in return provides you a loyal and long-term customer base.
The data revolution is like a tsunami that you can’t block from disrupting the modern-day business environment. Every domain of business, from marketing to human resource management, will absorb its aftershocks. Therefore, it is imperative for a business to adopt data analytics to set SMART goals, make meaningful decisions, and identify the target audience resulting in creating a personalized approach.