Most of the data that businesses have is unstructured. Therefore, it gets extremely difficult to analyze and assess mass data which is a problem for companies nowadays. This is where the need for data analytics comes in. Data analytics provides useful insights from which numerous companies are growing their business because of strategic business moves and better business decisions. Companies are rapidly adopting data analytics in businesses to improve their processes and streamline operations.
A survey conducted by Bloomberg Businessweek Research Services says that around 97% of the companies are employing data analytics in one form or the other. The data analytics market is projected to reach 103 billion dollars by 2023.
But the question is, how Big Data is reaping benefits for businesses? Let’s learn how big data is contributing to the expansion and growth of businesses:
Cost-saving and Efficiency
Data analytics can cut down the operational costs of the company without compromising the efficiency of normal company processes. The information that is collected, best practices can be adopted for marketing and sales, lead generation, customer communication and engagements. These practices save a lot of money and resources, consequently increases the longevity of the businesses There are also free data analytics tools available to gather business metrics. You can get rid of all the inefficient systems and streamline all the areas of business.
If you are a startup, it is understandable that you are short on data. This makes it harder to grow your company from a startup to a formidable and successful company. Systems, processes and strategies may seem ideal on paper, but your business needs to adapt to the current dynamic market situation. For this purpose, data analytics is needed to monitor your processes and systems in order to recommend improvements. It can be intelligently used to retain customers, which will ultimately augment the company’s value.
Customers are the backbone of every business. No company can claim success without having a large customer base. But with a large customer base comes great competition. Critical customer behaviour insight can be assessed through the customer data analytics’ mechanism. Trends and patterns can be studied through data analytics which enables businesses to trigger customer loyalty. Collecting more data ultimately improves your ability to understand customer trends and learn what your customers expect from you.
Normally, companies have plenty of products or services with their own characteristics and demands. Necessary supervision of these services and products becomes quite overwhelming without enough feedback and information. Data analytics tell companies what drives their sales, which product is performing well and how their products perform against other competitors. This information is extremely crucial for decision making. This data might compel you to change your market strategy for better results.
Companies need data analytic tools to ensure that they are using essential resources optimally; hence, boosting the revenue. Numerous surveys conclude that employing data analytics in business increases the revenue by 20% and brings down the cost by 30%. Since every business is unique and needs different investment at different times, data analytics guides when to take a certain decision. For instance, a gift shop may get an increase in revenue in the festive and holiday season. Lastly, campaigns that are not reaping results can be abandoned, and the same resources can be directed in another campaign.
Data Analytics is the Game Changer
Utilizing data analytics for the growth of your business has countless benefits. Data that you gather gives you valuable business insights that allow you to make better decisions, retain customers by gauging customer trends. It also helps in streamlining your operation by cutting costs and making operations efficient.