As we move further into the age of data, we are finding ourselves in an increasingly data-rich and data-oriented world. Almost everything that a company does today is dictated by data and analytics in one way or another. Organisations have begun using sophisticated analytics techniques to identify new growth areas, streamline costs, increase operating margins, make better human resource decisions and devise more effective budgets. The influence of data also spills over into our personal lives, health care, the environment and much more.
Experts have predicted that this influence will only continue to grow in the next few decades.
Also, despite its ever-growing influence, analytics is still a new concept to a lot of people, particularly when it comes to buzzwords and key terms. And at the same time, there is no shortage of young professionals looking to find a way to break into the analytics space. In today’s post, we hope to inspire you to begin educating yourself in data and use this to build towards a career in what is already one of the hottest industry of the 21st century.
Now, before we get started, let’s define data analytics.
What is Data Analytics?
As the word suggests, data analytics refers to the techniques to analyse data to enhance productivity and business gain. Data is extracted from various sources and is cleaned and categorised to analyse different behavioural patterns. The techniques and the tools used vary according to the organisation or individual.
Why is Data Analytics Important?
Data has the potential to provide a lot of value to businesses, but to unlock that value, you need the analytics component. Analysis techniques give businesses access to insights that can help them to improve their performance. It can help you improve your knowledge of your customers, ad campaigns, budget and more.
As the importance of data analytics in the business world increases, it becomes more critical that your company understand how to implement it.
1) Improved decision making
Companies can use the insights they gain from data analytics to inform their decisions, leading to better outcomes. Data analytics eliminates much of the guesswork from planning marketing campaigns, choosing what content to create, developing products and more. It gives you a 360-degree view of your customers, which means you understand them more fully, enabling you to better meet their needs. Plus, with modern data analytics technology, you can continuously collect and analyse new data to update your understanding as conditions change.
2) Effective marketing
When you understand your audience better, you can market to them more effectively. Data analytics also gives you useful insights into how your campaigns are performing so that you can fine-tune them for optimal outcomes.
Using various data analytics tools, you can gain insights into which audience segments are most likely to interact with a campaign and convert. You can use this information to adjust your targeting criteria either manually or through automation, or use it to develop different messaging and creative for different segments. Improving your targeting results in more conversions and less ad waste.
3) Better customer service
Data analytics provide you with more insights into your customers, allowing you to tailor customer service to their needs, provide more personalisation and build stronger relationships with them. Your data can reveal information about your customers’ communications preferences, their interests, their concerns and more. Having a central location for this data also ensures that your whole customer service team, as well as your sales and marketing teams, are on the same page.
4) Efficient operations
Data analytics can help you streamline your processes, save money and boost your bottom line. When you have an improved understanding of what your audience wants, you waste less time on creating ads and content that don’t match your audience’s interests. This means less money wasted as well as improved results from your campaigns and content strategies. In addition to reducing your costs, analytics can also boost your revenue through increased conversions, ad revenue or subscriptions.
Data Analytics Examples
Let’s look at a few quick examples of how you might collect data and analyse it to help improve outcomes for your business.
Let’s say you’re a marketer running an online ad campaign to promote a new smartphone. You might start by targeting the ad to people who bought the previous version of the phone in question. As your campaign runs, you use data analytics techniques to sift through the data generated when people clicked on the ad. By examining data about these users’ interests, perhaps you discover many of them are interested in photography. Perhaps this is because your new phone has a better camera than the previous model. Using this information, you could fine-tune your ad to focus on users who bought the previous phone and like photography. You could also find new audiences of people who didn’t buy the older phone but are interested in photography.
As another example, let’s say you publish a site that features videos about sports. As people visit your site, you could collect data about which videos different visitors watch as well as how highly they rate the videos, which ones they comment on and more. You could also gather information about the demographics of each user. You can use data analytics tools to determine which audience segments are most likely to watch certain videos. You can then suggest videos to people based on the segments they fit into best. For example, you might find that older men are most likely to be interested in golf, while younger men are most likely to be interested in basketball.
Challenges of Data Analytics
While data analytics can provide many benefits to the companies that use it, it’s not without its challenges. Working with the right partners and using the right tools can help businesses to overcome these difficulties.
One of the biggest challenges related to data analytics is collecting the data. There’s a lot of data that businesses could potentially collect, and they need to determine what to prioritise. Collecting data requires tools that can gather data from website visits, ad clicks and other interactions and deliver it in a usable format.
Once you collect your data, you need somewhere to store in. This can take up a considerable amount of space and contain many different types of information. You have to integrate both structured and unstructured data from online and offline sources and from internal and external sources.
You also need to ensure data quality so your results are accurate. In addition, your data needs to be accessible and not siloed so everyone throughout your organisation has the same repository.
Lastly, you need to have the knowledge and tools necessary to make sense of the data and provide insights. Gear yourself with the relevant knowledge and tools with our highly rated data analytics courses.