How Companies Can Use Analytics
In order to penetrate specific markets and stay competitive, companies are constantly utilizing big data and analytics to drive innovation and to evaluate the impact of certain strategic decisions. Analytical software and tools have so much potential since it has the power to evaluate productivity, interpret a significant amount of data, and the ability to calculate certain risks and benefits. Whether it be marketing or finance, each industry may have its own specific usage of analytics but, overall, it trickles down to these four:
1. Consumer Transparency
In order to target a specific group of shoppers, retailers can gather information about consumer behaviors such as clicks, visited pages, browsing time, products viewed, and the turnover rate (purchases & transactions). With this data, retailers can quantify, organize, and analyze this intelligence to retract behavior patterns and convert it into strategy for the overall Omni channel.
2. Performance Indicators
All companies are now using analytics and data to measure efficiency and the productivity of their firms. Performance can be measured and assessed, allowing companies to determine whether to proceed with certain management decisions. Data analysis can also demonstrate areas for improvement and development, setting a path for effective policies that can reduce the margin for error in addition to avoiding unnecessary costs.
3. Effective Problem Solving
Through the use of intelligence and analytical programs, companies can test certain strategies based on current business models and can use relevant data to figure out the best approaches. Use of data and analytics can help resolve internal and external problems in the company, promoting data backed decisions.
4. Market Research/Penetration
Technology is constantly developing and transforming, making nonexistent markets a reality. Companies constantly need to collect data to look for innovative ways to introduce impactful products and platforms. Through data analysis and research, companies can create opportunities and capitalize on these untapped markets. With the necessary data tools risk can be minimized while maximizing potential returns.
As information becomes more available and digitized, it is imperative for companies to quickly react to accumulated data. The role of analytics is expanding; therefore, companies must invest in data analysis in order to stay competitive in the market. Those that don’t will indefinitely struggle and fall behind.
This was written by guest blogger, Paul Chang, a student at New York University, College of Arts and Sciences majoring in Economics.