How you can use data analytics to drive business processes

Data is crucial to the evolution of today's businesses, yet many organisations still don't know how to use data analytics to their advantage…

Data is crucial to the evolution of today’s businesses.

Yet, many organisations still don’t know how to use data analytics to their advantage.

The growth of the cloud computing market and the accessibility of new technology means that even the smallest business can unlock the potential of big data and advanced analytics. According to Bain, approximately 80% of companies think that data and analytics are crucial to their future growth, yet only 19% of brands are mining high-quality information consistently.

If you’re one of the many companies that still isn’t making the most out of the data revolution, now could be the perfect time to get ahead of the competition.

Let’s take a look at how companies are using big data and analytics to change their processes and how you can take the same step forward.

1.    Using strategic analytics for a better competitive edge

One of the reasons that companies of all sizes are beginning to see the importance of data in decision making is that they can now see just how valuable information is to stand out from the crowd. With strategic insights into your marketplace, you can begin to see the gaps in your industry that need to be filled, giving you an incredible opportunity to create new products and services for a niche audience.

As you collect more data about both your target market and your current industry, you’ll begin to see the gaps between what people want and what is being delivered. For instance, you might notice that a lot of customers are asking for next-day delivery on items, but most of your competitors can’t offer this service. Leading marketplace, Amazon used big data analytics to determine that their customers wanted the convenience of Prime delivery, mixed with access to their grocery shopping. As a result, Amazon Fresh and Whole Foods emerged.

2.    Using big data and analytics for supply chain management

When you’re learning how to use data analytics to come up with new ideas for your product and service portfolio, you can also start to pinpoint inefficiencies in your supply chain. For instance, PepsiCo is an example of a brand that relies on vast amounts of data to manage efficient supply chain management. The company is continuously tracking demand and warehouse inventory to ensure that they don’t fall behind on providing the products their customers need.

With the right analytics strategy, you can even determine whether you’re paying over the odds for the services that you rely on every day. For instance, the Nice Network analytics division highlights potential overspend by looking at your month-to-month billing overviews to determine whether you’re paying for more bandwidth, mobile functionality, and data than you really need.

This means that the importance of data in decision making can extend to giving you more control over your expenditure, and more insight into the vendors, suppliers, and software you work with.

3.    Using data to improve customer experience

Finally, when it comes to discussing how companies are using big data and analytics, one of the most common options is to tap into information for customer service purposes. The customer is the asset that your business depends on most. Without happy customers, you can’t thrive in the current marketplace, no matter what you do, or what kind of products you sell. The use of big data allows companies to access useful trends and patterns in customer behaviour that can inform decision making.

For instance, you can assess your contact centre data and discover that your customers are more likely to contact you via text rather than using a phone call. That means that you might decide to invest more into SMS-focused customer service. You might even notice that certain products are more appealing to your customers than others, so you can make choices about where to make your next investments.

The key to success in the current marketplace is making sure that you’re delivering what your audience wants from you and your industry. However, the only way to make sure that you know what people need is to dive into your data analytics and find out what they have to say.

Understanding the importance of data in decision making

In the age of customer experience, when the marketplace is becoming more competitive for virtually every industry, companies can’t afford to overestimate the importance of information. Learning how to use data analytics effectively will help you to:

  • Strengthen your marketplace position
  • Improve your supply chain
  • Reduce expenses and unnecessary waste
  • Create new innovations
  • Better serve your target audience

Are you ready to discover what data can really do for you?