90% of all digital data has been created within the last three years.
The trail we leave behind tells a lot about who we are, how we behave, and what makes us click the “buy” button. And, it’s easier than ever for business owners to collect this information.
But, with massive amounts of data comes massive amounts of information overload. How do you know what’s useful? And, if it is useful, what does it really mean?
Proper business analytics will help you decipher what you collect.
Keep reading to learn about how digital data works and how to harness its power to make waves in your business. You’ll be glad you did.
What is Business Analytics?
Business analytics help decision-makers explore statistical trends within their organization. Using data to make decisions means eliminating guesswork within your business.
Successful analysts use data to draw conclusions and predict future behavior. But, data alone isn’t very useful. Knowing what that data means and how to use it to your advantage is the heart of business analytics.
Only 3% of business decision-makers know what to do with the data they collect. So, you already have a leg up on your competitors.
Knowing how to make data-driven decisions will help your business flourish. In 10 years, you’ll look back and be glad you took the time to understand.
The Ins and Outs of Business Data Analytics
The key to successfully using your analytics lies in understanding your business goals. Once you’ve revisited them, review or set objectives you need to accomplish to reach them.
The core of business analytics is evaluating your performance in relation to your objectives. This can be as simple as looking at traffic trends. Or, it can involve vigorous data-mining and predictive analysis methods.
As you go, you’ll discover trends and relationships you never knew existed. These relationships will help you make decisions that benefit your business.
You (or an expert) will continue this process until you meet your goals:
- Review high-level business goals
- Set objectives and milestones needed for success
- Track and evaluate data that quantify your performance
- Organize data into a report or easy to digest format
Then, set new goals, rinse, and repeat.
Business Analytics vs. Data Science
Advanced business analytics start to mirror the characteristics of data science. But, the terms aren’t interchangeable. Data science answers broad or ill-defined questions that help you understand your business.
Business analytics look at specific questions and objectives.
Data scientists know how to turn your data into information you can actually use without having to know what you’re looking for. Because of that, data analysis consulting is beneficial for businesses at any level.
Why Business Analytics Isn’t a Maybe
Understanding the data you collect will impact the future of your business. So, let’s talk about the benefits of investing in effective business analytics.
Optimize and Automate Business Operations
Analytics tell a lot about the efficiency of your business. You can use it to locate bottlenecks, automate tasks, and optimize your efforts. Additionally, you can save time by testing your decisions.
Data tells you what works and what doesn’t. This allows you to optimize your business around what does work.
Avoid Fraud, Hacking, and Risky Behavior
Business analytics can help detect fraudulent activity before it destroys your business. Experts know what to look for and how to handle it.
Additionally, you can use data to mitigate making risky decisions.
Make Businesscentric Decisions
As a human, it can be difficult to make logical, data-driven decisions. That’s especially true when it comes to something you’re passionate about. So, analytics help you make smart choices when it comes to the future of your business.
You’ll be able to strategically decide things like:
- Where to invest more money
- Areas to focus on in the future
- When to hire your first full-time employee
- What your customers love or hate
- Who your target audience is (and isn’t)
Evaluate Your Performance in Relation to Specific Goals
It’s easy to set goals. But tracking your performance against those goals proves to be a complicated mission. Analytics give numerical data to show trends over time allowing you to see a clear picture.
Identify Opportunities and Problem Areas
As a business owner, you’ve got a lot going on. You don’t have time to vet out every decision you make going forward. Thanks to big data, you don’t have to.
You’ll already know what works well for your business. You can then use that information to magnify your results. On the other side of that coin, you’ll understand where you need to focus a little extra TLC.
Pinpoint Your Target Audience
Customers and visitors leave behind a digital trail. Often times, this information is collected automatically (with their consent). But, most business owners don’t know what to do with it.
One of the many applications of big data is getting to know them. As you start understanding who they are, you can use your brand, messaging, and optimized products to turn them into customers.
They’ll wonder how you’re able to read their minds. And, you may even find relationships that surprise you.
Better Serve Your People
59% of customers report that personalized experiences have an impact on their buying decisions. People expect personalization. And, big data can help you deliver.
By knowing who your customers are, you can work to create an unforgettable experience. Once you’re inside their head, you can develop the essence of personalized messaging that speaks directly to them.
Big Data Today and in the Future
As technology develops, our ability to extract useful information from the data we collect improves. Software and automation have made data-extraction easier than ever. And, it can also compile it for you.
We understand the power of business analytics. But, most business owners don’t know how to harness it. Now is the golden opportunity to start using data to skyrocket your business.
Drop a comment and let us know how you plan on using big data to boost your business!