[guest post by Julian Hooks]
With data analytics, statistics are extracted and categorized in order to analyze and identify behavioral patterns and data, and the techniques used are varied depending on the organization’s requirements.
This kind of information is collected from different organizations and industries. A company uses this as a tool in calculating what their advantage over their competitors is in terms of the increase or decrease of their own sales. It also helps point out where the organization needs to make improvements. This could help save the company thousands of money, enhance their efficiency in procurement, create marketing strategies, and support the growth of the business and how to have an edge over their competitors.
The kind of statistics being collected is relevant and real time information concerning sales and finance, product development and marketing among others. It helps each sector of the business to work together in getting better results and outperform their competitors. Using a network, the information is shared among the various departments of a business. Access to this valuable information enables the departments to spot customer trends and behaviors, increase in sales therefore improving customer relations and enables them a competitive edge.
Additionally, the information can be used by employees in making better business decisions in improving their services and products. In gathering information, the company can sort thru customer requests, order information and other configurations of their products, bundled deals and services. These statistics should be efficiently handled otherwise, it will just be additional work for the employees.
To explain further, there are 5 main benefits to using data analytics.
1. It reduces costs. Technologies that handle huge amounts of statistics deliver huge cost advantages in handling information. It also identifies better ways of operating a business.
2. It helps in making better and faster business decisions. Combined with the speed and accuracy in analyzing the information gathered, business are able to make better decisions on how to improve their operations due to the immediate access to this data.
3. It creates new products and services. Business are able to gauge customer preferences and needs using analytics. In this way, they are able to develop new products that are more efficient in meeting the demands of the customers
4. It brings positive return on Investment. Collecting all financial and operational information from various sources enables the company to improve their efficiency in their operations. This requires better management and delivery systems and an integration of well-managed partners.
5. It provides an all-inclusive approach. Companies are seeing the importance of interpreting and understanding the information gathered from several nontraditional sources. An IT infrastructure must be created that will comply with deliverables and collects and analyzes the data coming from different sources, initiate data searches, and provides all day, real-time analysis, to help the company make improved decision making.
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**About the Author: Julian Hooks is the brains behind the Advertising Commissions, a digital marketing agency. Helping businesses grow their presence on the web is one of his many passions. Check out his Ultimate Guide to Local SEO or the Shopify Review Guide for eCommerce.