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How Data Analytics Contribute to Business Growth

We are living in a data-driven world that’s only going to produce more and more data as time goes on. In such a world, it’s only natural for us to look back at this recorded information to see where we have been and where we would like to go. It’s like seeing a picture of yourself in your early teen years; sure you thought that was a cool haircut, but the data doesn’t lie.

Businesses are taking this perspective on data, however in a much more serious sense. Data analytics are providing benefits to businesses from the beginning of a startup, facilitating expansive growth, and exploding them into large, formidable companies. Rutgers expresses the importance of data analytics, saying that “IT and other skilled technology professionals at innovative firms such as Google, Tesla and Uber, have leveraged the power of data analytics to break into new markets, build stronger relationships with consumers, and streamline processes such as supply chain and marketing management.”

So, exactly how does data analytics do this? Below we take a look at how the examination company data can contribute to business growth.

Planning Ahead

Keeping a business’ daily operations running smoothly is a foundational goal of any company. Without some degree of operational efficiency, a business would cease to be a business. The efficiency at which a company runs its operations can significantly elevate with the evaluation of data analytics. Using analytical tools to decipher the raw data your company produces can help pinpoint and correct areas of inefficiency as well as provide many risk management options — creating ample opportunity to plan for a company’s growth.

An examination of a business’ raw data allows for the determination of where a company is lacking in its operations. A company can now compile data to see where it’s logistical department is ordering more or less than it needs. Furthermore, data analytics can yield results forecasting more or less demand from customers — preparing a company for the adjustments needed in the future. In almost the same fashion, data measurements can be weighed for financial and accounting operations when budgeting, and project management to tighten project duration and employee efficiency.

This forecasting of operational capabilities allows for a more agile company who can more advantageously manage financial risks. A business can now take larger financial risks with more confidence, all while having the flexibility to adjust to the consequences of said risks — which can be assessed through analytics. With this flexibility and potential to take bigger financial risks, or know when the risk is not worth taking, comes substantial business growth. The investment in an analytics professional for the peace of mind of the above alone is well worth the ROI.

Marketing & Customer Reach

The measurements of data, especially on social media platforms, has revolutionized marketing efforts. Companies are now able to understand their audience better, and as a result know, what marketing strategies will be successful. Social media produces an extensive amount of data. Of which, professionals are using analytics tools to decipher and reveal many insights about a business’ potential and existing customer base. This data is a goldmine from a marketing perspective.

Companies are now able to understand how customers are talking about them, specifically what they like and don’t like. Businesses now understand that engagement metrics should be taken into account for a variety of reasons. First, through social listening, they can see who is commenting and mentioning a business, and sharing content with others. With this, they can see who comments and shares the most, i.e., influencers of the customer base, and can target marketing and content strategy campaigns toward them. Knowing who their audience is and how they talk about a business lets a company better target the audiences for a larger customer reach.

Other metrics such as click-through and bounce rate can alert a business of how successful their marketing and content campaigns are going, and if they need to redesign marketing efforts to reach more customers. Click-through rate illuminates how much traffic is coming to a company’s website landing page, but a more comprehensive understanding of traffic can be gained when click-through rate is read with a bounce rate measurement. Bounce rates show when a visitor leaves the site after only visiting the page they landed on.

This is important for a business to understand that a certain volume of their website traffic are accidental clicks or indications that they need to make the site more user-friendly. One thing a low click-through rate can point out is that a company needs to optimize their web page. The importance of search engine optimization is stressed when Websauce Studio states, “When you provide the best value to the users the return is a free spot at the top.” This means that search engine optimization not only makes your website user-friendly, but it ranks you higher in Google’s search engine results page — reaching more customers and prompting a better click-through rate.

Big data and data analytics is too costly to be ignored by any business. Businesses produce expansive data every day, and to understand that data is to understand the current state of a business and where it needs to be headed. If a business wants to expand, tracking data analytics will provide the flexibility and the foresight for it to grow in almost every aspect.

About the Author

Avery Phillips is a freelance human based out of the beautiful Treasure Valley. She loves all things in nature, especially humans. Leave a comment down below or tweet her @a_taylorian with any questions or comments.

 

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