It seems bizarre to observe 21st-century companies relying upon intuition in business decision-making. A modern-day organization should incorporate hard data into its policymaking endeavors for better results. We live in the era of big data, where companies leverage information to create products desired by end-users. However, today, more than 60% of business executives still depend on their “gut feelings” while considering important business transactions. Though your instincts often help you make the right call, business decisions must be data-driven, rational, and analytical. We will explain here now how data analytics heavily contributes to the success and expansion of your business.
- Benefits of analytics for business expansion
The world’s become information-dependent, where profitability is decided by how many terabytes you’re putting into the decision-making process. Statistics show customers produce 2.5×1018 bytes of data each day while average companies manage 160+ terabytes of information. However, enterprises merely utilize 50% of their data to make business decisions. Analytics permit marketers to understand customer behaviors, leverage current trends, and determine the success of their promotional activities. Now, you can notice the business industry depends upon DDDM (data-driven decision-making) to expand into more marketable domains. So, let’s see how you can use data for business growth and expansion.
So, how do you attain the opportunities to enhance your company’s analytical proficiency? Today, many companies employ professionals who have pursued a degree in business analytics (MSBA). There are now several career pathways for students and professionals who desire to provide companies with their data-related skills in exchange for financial gains. Hence, Masters in Business Analytics jobs available today include marketing specialists, data managers, IT managers, etc. Companies hire these data experts to grow their audiences by using the data effectively. Below, we have mentioned some essential advantages of data analytics for modern-day organizations. Here’s how DDDM makes your company more profitable now:
- Finding your niche
Data analytics improve a company’s marketing endeavors by helping business owners and marketers identify their niche for effective targeting. You leverage data gathered from already-existing customers to find the demographic most interested in your services and products. When you’ve identified the ideal niche, you won’t advertise to people who are less likely to conduct business with you. So, information makes an organization competent enough to focus its marketing endeavors on the right decision. It prevents companies from wasting their resources on campaigns that won’t contribute to the growth of these businesses. You should leverage analytics to find the right niche for growth in the future.
- Enhance customer service
Companies can utilize big data to understand their customers’ concerns before consumers are even aware of these problems. Business analytics has introduced proactive customer service, which has revolutionized how companies interact with the audience. By incorporating automation, analytics can provide personalized catering to people by evaluating their problems. It helps to offer valuable solutions. So, customer support reps can better understand a caller’s complaints and assist the caller in a better way.
- Avoid business risks
Analytics enables a company to predict future threats to its profitability. For instance, a health crisis such as COVID-19 compels organizations to leverage information for risk assessment and management. Why fight risks when you can prevent them altogether? Assessing big data can help you formulate a concrete strategy against risks to the company’s productivity. Now, business owners can identify any threat to their companies for immediate response with the help of expert analysts and decision-makers.
- Increases revenue growth
Google commissioned some marketing researchers to evaluate the benefits of DDDM. They found that companies investing more in business analytics observed a 20% revenue growth, thereby being more profitable than others. With analytics, you can easily monitor e-commerce activities. Hence, you can measure the performance of your marketing endeavors and only continue those which have remained profitable. For instance, data tells you which digital keywords bring more traffic to your website. It also tells you which products are selling better.
- Creating massive personalization
One of the most significant benefits of business analytics today involves “massive personalization.” Again, you must incorporate this strategy with automation to send your subscribers personalized emails to generate more potential buyers. Studies show personalized emails are 26% more likely to be opened. Data analytics enables companies to create content catered to each subscribers’ likes and wishes. That’s how your marketing content becomes more effective, thereby drastically boosting your company’s profitability. More than 70% of marketers believe that “massive personalization” is a better scheme to engage your audiences.
- Decrease investment costs
Evaluating big data can show you the right strategy for business expansion you must adopt. Some studies indicate data analytics helps businesses reduce expenses by 30% by focusing on strategies that are statistically more profitable than others. For example, a coffee store can leverage data to realize which promotional campaigns drive more customers to buy their products. So, you invest in resources for maximum efficiency, thereby boosting your ROI.
- Advertise more effectively
Surveys indicate that more than 60% of small-sized companies don’t have successful advertisements on Facebook, because of which their promotional campaigns suffer. Business analytics help marketers use split-testing to ascertain their effectiveness. This includes the pop-ups used by the company, the landing webpage to welcome visitors, and even the images used for products. Data also indicate where to position your ads on a website for maximum visibility, thereby a higher ROI.
- Manage logistics efficiently
Managing the business supply chain has become easier with the introduction of data analytics now. Effective management ensures a smooth flow of goods which eventually create the products your customers demand. Today, organizations can streamline logistics by applying big data analytics to mitigate delays in product management. Analytical strategies also ascertain the products get delivered to customers on time and in good condition. It leads to happier consumers and better reviews of the company.
- Improve customer retention
Collecting consumer-related data allows companies to discover more information regarding people to understand what triggers loyalty among audiences. Observing trends & patterns about your customers can help you attract new consumers and retain existing ones too! Gathering these intelligent insights into your audience’s mindset shows you what folks want from your company. A recent example involves Coca-Cola introducing a “digital loyalty program” in which people receive points for every purchase. The digital version of this program enables customers to get rewarded for interacting with this brand. They can redeem these points by purchasing stuff at discounted prices.
It took the business industry decades to switch from gut-based decisions to data-driven policymaking. A survey shows almost 60% of organizations leverage data analytics for better decision-making in the world today. It helps companies make informed decisions with improved accuracy to remain productive and responsible commercially. The benefits of analytics include reduced marketing expenditures as well as proactive customer service. So, when you’re advertising more effectively and skillfully managing your products, it directly contributes to business expansion. That’s why more companies are now adopting an analytical marketing approach today. It’s cost-effective and more accurate than traditional strategies.