At present, there is a staggering statistic that has been made known about the amount of data created every day on the Internet, and this will point up the importance of data analytics. It is said that every person on Earth is creating 1.7 megabytes of data every second of every day currently, so it is essential that these mountains of data be analyzed to detect patterns and structures among the raw data. Without data analytics, all this data would be relatively meaningless and useless. With data analytics, insights can be obtained, and actions can be taken as a result of those insights.
How Does Data Analytics Help?
First of all, data analytics can optimize performance for a company, discovering previously unknown patterns and correlations that may have prevented a company from achieving its goals. It also identifies processes that are working very well, and should perhaps be expanded to other areas of the business. When decisions are made on the basis of sound data, these data-driven decisions invariably work out better than choices made in a vacuum. Such decisions can make business processes more agile, and more reflective of legitimate customer wants and needs.
Data analytics is also especially well suited to analyze historical data, and use conclusions to predict future behavior and trends. This will help businesses to be proactive, rather than reacting to trends long after they’ve become established. Because data analytics incorporates information about customers, steps can be taken to satisfy those customers and improve their level of satisfaction with a company.
This also leads to greater customer loyalty and retention. This fact alone can be extremely valuable, given the cost of acquiring new customers. Data analytics can identify through analysis in which customers are prone to leaving the company, and this will give you an opportunity to correct any problems before it actually comes to that. Data analytics will help you to cater to each customer, so as to avoid losing their business, and to encourage them to become long-term loyal patrons.