In this day and age, the influx of data has overwhelmed businesses. Which prevents them from maximizing the potential of big data analytics to drive even more revenue and profit.Forbes shares that there are 2.5 quintillion bytes of data created each day but only 0.5% is analyzed.
In the Philippines, only two out of five companies are highly data-driven. But a good thing to note, most Filipino businesses realize this as an advantage. With three out of five having data and analytics (D&A) teams. (PwC Data Analytics Assessment and Readiness Survey, 2020)
We should know by now that making business decisions based on hard evidence from data is becoming a competency and an edge for those who utilize it. Case in point, the McKinsey Global Institute indicates that data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain those customers, and 19 times as likely to be profitable as a result.
Today, getting the most value out of your data is a superpower that business leaders should invest in. It is a profit-increasing ability based on facts, trends, and statistics rather than a gut feel.
In this blog, we’ll share with you four proven ways that embedding a clear data analytics strategy into your business can maximize your returns.
#1. Improving processes to reduce errors
One of the best benefits of having effective data analytics in your business is improving your processes to reduce wasted money and time.
For instance, you’re in a bread manufacturing company struggling to predict the right numbers to make in a day. In effect, your company overproduces and ends up with wasted unsold food as it expires in less than a week. Besides that, you want your product as fresh as possible when it goes straight to supermarket shelves.
This is where data analytics comes to play. As a result, you can make more accurate forecasting of the demand and supply. Which can significantly reduce the percentage of loss or waste and increase profitability.
#2. Mapping business performance
Another advantage of utilizing data analytics is data visualization. The power to see how your business performs gives you a clearer picture of your goals and targets.
With the right tools to visualize your company data, you’ll be able to map employee performance, team outcomes, company goals, and quarter results, among others. In other words, this empowers your business to look at rooms for improvement and opportunities to consider.
For sure, presenting numbers and graphs has always been a part of your business reviews. That’s why with the right tool, you can also reduce working hours spent on creating manual reports and data consolidation by automating reports generation. Now, your staff can spend valuable time on more critical operational business tasks.
#3. Optimizing the customer experience
Undeniably, the behavior of customers is becoming a lot clearer and available today. You can gather lots of data from various consumer touchpoints. Such as your company website, social media presence, and electronic payments.
After identifying these touchpoints, data analytics can help you optimize the customer experience. Likewise, businesses can harness data to find new customers, track social media interaction with the brand, improve customer retention rate, capture customer inclinations and market trends, predict sales trends, and improve brand experience.
Using the right data can help you plan out an effective marketing strategy and know when to launch your new products and sales. Data is your lens to interact seamlessly with the right customers at the right time.
#4. Getting ahead of the competition
I can’t stress this enough: there’s a multitude of ways your business can utilize your data. So, using this ability to get ahead of your competition is untapped power.
Firstly, data analytics can identify the best channels for your business that offer more significant ROI and focus on them. It will be a driving force to develop a better, informed marketing and sales strategy by analyzing trends and insights from gathered data. You can even avoid spending thousands on marketing campaigns that don’t even address your target audience.
Another one, analyzing data can reveal what your market needs and wants. Keywords can tell you exactly what features your customers are searching. From its frequency, you can infer the relevant priorities of opposing interests. While the relative change can identify and predict trends in customer behavior. It can even understand where customers are struggling the most and how support should be stationed.
Data Analytics empowers Businesses of the Now
Knowing these ways to embed data is just a starting point. If companies can exploit the potential of big data analytics, they can dodge being a business of the past.
Data and analytics are the key forces to an organization’s digital transformation. That’s why Gartner predicts that by 2022, about 90% of corporate strategies will explicitly state data as a significant asset and analytics as a competency.
That’s quite of an outlook. To reiterate: With great data analytics comes great returns.
In a study of over 400 businesses by Bain & Company, they found out that those with the most advanced data analytics get a larger market share. Moreover, they were twice as likely to be in their industry’s top 25% for profitability and five times more likely to make faster decisions than competitors.
Therefore, we can’t ignore the fact that the world’s data production is accelerating. Its effect on the business landscape is getting more and more realized. And being able to derive business decisions from hardcore data analytics is a power that yields better outcomes.
Exist is your data solutions partner of choice!
Explore the next level of your digital transformation journey with big data and analytics. Let’s look at opportunities to better maximize your ROI by turning your data into actionable intelligence. Connect with us today, and we’ll proudly collaborate with you!