Business analytics includes a set of disciplines and technologies that help solve business problems using data and analytics through data analysis, statistical methods and other quantitative methods.
In the modern era, as the level of competition in the business environment has grown, the relevance of data and business analytics as a critical tool for business growth has increased.
Companies have turned towards data driven business models to acquire faster growth.
Businesses can easily turn data into a critical advantage.
The most data driven companies treat data as an asset and use it to cement their competitive advantage.
Intel is an example of one of the companies that have adopted a data driven business model to achieve superior growth.
It is important for businesses to focus on their use of data and business analytics so they do not get left behind others who have adopted data driven business models first.
There are several benefits of using business analytics. Here we have listed some ways in which businesses stand to benefit from business analytics.
Data driven business strategy:
It’s the age of data and companies are turning towards a data driven business model to acquire faster growth.
Business analytics plays a crucial role in helping companies make driven business strategy.
It drives business efficiency and performance even amid uncertainty.
Managers can make data driven decisions by using data and analytics.
Business analytics help formulate more efficient strategies and derive superior results.
The companies that use business analytics to make data driven decisions grow faster.
Firms need to focus on trends and customer preferences to acquire growth in a hypercompetitive industry scenario.
Outperforming competitors requires a critical focus on data and analytics across every function from marketing to sales and finance.
Grow Business Process Efficiency:
Firms can gain higher efficiency by focusing on data and analytics and using data to make focused and effective decisions.
Data and analytics can help transform business processes.
Leading companies are building strong data and analytics capabilities to grow the efficiency of their core operations and to transform their business models.
Business processes become more efficient through the use of business analytics. It also helps minimize the wastage of time and other resources.
Improve customer experience:
Businesses use data and analytics to improve customer experience.
They collect data related to customers preferences and their purchasing habits from the website, apps and other sources.
The analytics can then be used to improve customer experience. It helps with customer retention.
Apart from that, businesses can use such data and analytics to design better marketing programs.
Customer experience has acquired a special relevance in this hypercompetitive era.
Superior customer experience helps retain customers for longer and create higher customer satisfaction.
Improved customer experience means superior brand loyalty and more repeat purchases.
All of this can result in a healthier bottom line.
Improve employee engagement and retention:
Companies use business data and analytics for designing superior employee training and education programs.
The tech firms are ahead of the others in this area.
Every year firms lose a lot of money due to high employee attrition rates.
HR managers can use business data and analytics to grow employee engagement, measure performance, employee satisfaction and create employee engagement programs.
Such employee engagement programs can help firms reduce their employee turnover rates and bring HR costs lower.
Higher employee engagement means higher productivity and higher employee satisfaction.
It also results in higher loyalty and better employer employee relationships.
Companies know that their HR is among the most critical assets.
So, they are using data and analytics to foster superior performance and faster career growth for their employees.
Reduce other operational costs:
Firms spend a fortune every year on running and managing their businesses.
There are a large number of companies that use data and analytics to reduce costs of operations.
It helps reduce operating costs in various areas including manufacturing, marketing, and other areas.
For example, businesses can use data and analytics to learn about business areas where they are incurring heavy costs and minimize wastage.
They can also reduce operating costs by managing their resources and allocating capital more efficiently using data and analytics. Reduction in operating costs leads to higher profits and superior margins.
Business analytics helps minimize wastage across all the industries from automobiles to QSR and fashion.
Leading fashion brands use business analytics to streamline their business processes.
Nike is one of those fashion brands, which have mastered this art.
It has employed the power of AI, data and predictive analytics to achieve faster growth.
Improve product and service quality:
Businesses also use data and analytics to improve product and service quality.
For example, businesses depend on customer feedback to improve the quality of their products and services.
Apart from that, they use previous sales data and other types of data to learn about products’ popularity, customer satisfaction level and make improvements to existing products and services accordingly.
Improve marketing and advertising ROI:
Marketing and promotions also require a huge budget in this hypercompetitive era.
It is why forms have to depend heavily on data and analytics to improve the efficiency of their marketing programs.
Companies need to focus on how they are spending their marketing dollars.
Each business wants to gain best returns from its marketing expenditure.
This can be made possible through the use of data and analytics.
Businesses use data and analytics to perform an analysis of their marketing programs and their customer bases.
It helps improve their targeting methods and develop marketing programs that drive higher sales and grow business popularity.
Tackle other organizational problems:
Several times businesses can face diverse types of problems related to operations or other areas.
In many situations, if the problem is not resolved immediately, it will cause operational disruption and huge financial losses.
Businesses can easily identify potential risks related to business operations using data and analytics.
By identifying potential risks, companies can avoid huge losses.
Apart from that, there are several types of other risks involved in a business.
These risks result from several factors including competition, technology, ever changing industry environment and other factors. However, the use of data and business analytics makes it easier to foresee these challenges and formulate strategies to tackle them.