Benefits of Data Analytics
Almost every business collects data at different points in the customer’s journey. How can they use the data to their advantage? Learn more about the benefits of data analytics and find out.
Benefits of Data Analytics
The continuously increasing volumes of data generated every day reflect the massive scale of digital transformation in present times. With the help of data and analytics solutions, businesses seek new ways to evaluate and review their data. Data analytics has provided a reliable tool for identifying legible patterns and insights from raw data. Apart from facility of insights, data analytics can also drive improved collaboration among teams and evaluation of past performance statistics of businesses.
Considering the potential value of data analytics, it is important to identify the benefits of big data analytics in different sectors. However, a generalized impression of the benefits of data analytics cannot help you understand how they deliver value in real life. The following post helps you learn about the benefits of data analytics along with the different ways in which analytics affect different industries.
How is Data Analytics Relevant Today?
Take a closer look at the online space you explore regularly. Consumers in digital spaces have to go through a flurry of ads for different products and services every day. You must have come across ads for PC accessories after searching for a keyboard or mouse on Google. How do businesses know that you need PC accessories? What exactly makes you stop and look at an online ad by a specific company? The answer is big data analytics, and businesses are capitalizing on analytics for understanding customer behaviors and patterns precisely with effectiveness.
Many of you must be wondering about the term “Big Data” and how it fits in the overall scheme of analytics. Well, it is nothing but the massive collection of data obtained from different sources, generally found in raw form. Data analytics helps in preparing the data for evaluation to derive business-specific insights. Considering the massive fluctuations in consumer preferences and variations of data, data analytics seems more relevant today than ever. You can learn more about the basics of data analytics with the guidance of reliable data analytics providers like Visvero right now.
Why Do You Need Data Analytics Now?
Before reflecting on the benefits of data analytics in healthcare and other sectors, you must know about the need for data analytics in present times. Here are some numbers that can paint a clear impression regarding the necessity of today’s data analytics.
- Almost 90% of the data existing today has been created in the course of the last two years.
- The total amount of data generated in 2020 amounted to 64.2 zettabytes.
- Estimates also suggest that almost 80% of data all over the world will be in unstructured form.
- Around 55% of data collected by companies never serve any productive use. At the same time, employees are likely to waste 50% of their time in dealing with redundant data quality issues.
- While 76% of organizations in a Deloitte study have reported improvements in analytical maturity, almost 62% of organizations still depend on conventional tools for data analytics.
- According to IBM, the issues of bad business data and analytics impose an annual cost burden of almost $3.1 trillion.
All these numbers show that the volume of data is increasing at an exponential rate. In addition, you can also notice how the majority of the data would be in the unstructured form, thereby leaving little room for analysis. On top of it, companies are not able to use the full potential of the data they have. Despite promising claims of improved analytical maturity, businesses continue experiencing many issues in data quality. Most important of all, improper data management and analytics have been affecting many businesses with redundant costs.
What Are the Advantages of Data Analytics?
The overview of reasons for which you need data analytics offers a solid impression of its necessity. You can rely on data analytics to resolve the prominent issues associated with data. Look for competent business data analytics solution providers like Visvero to explore the true value of data analytics. What type of value are you thinking of here? The following noticeable benefits of data analytics can give you a clear idea regarding its value.
Bringing In and Holding On to Customers
One of the foremost advantages of data science and analytics for businesses is the ability to find unique approaches. Enterprises can use data analytics to obtain a precise impression of their customer’s requirements—the advancements in data analytics help in observing the notable patterns in consumer behavior. Subsequently, businesses can use the patterns to encourage brand loyalty. In addition, businesses can collect more data for accurate estimation of trends and new ways for making customers happier.
The best example of using business analytics for customer acquisition and retention is Amazon. The online retail giant offers personalized shopping experiences based on past purchases of customers and browsing behavior, among many other factors. According to Forbes, data-driven companies are 23 times better in terms of customer acquisition when compared to peers. Interestingly, Netflix also registers annual savings on customer retention by using data analytics in the amount of more than $1 billion.
- Innovation in Product Design
The benefits of big data analytics not only help in improving marketing strategies but also product design. As a company dives deeper into the data collected from consumers, it can pinpoint their actual needs from a product. Therefore, a data analyst could help businesses identify the possibilities for updates in existing products. At the same time, data analytics also opens up avenues for introducing innovative product designs. With access to massive volumes of data, companies could easily identify the aspects which work well for their customer base.
The highly competitive market scenario in present times requires every business to stay one step ahead. You cannot sell flowers in a market where competitors offer bouquets. Therefore, all businesses must maintain their competitive stance in the present market. With the help of business analytics, it is possible to track customer feedback and product success alongside competitor strategies and operations. As a result, businesses could easily come up with products that are closest to addressing the expectations of their customers.
- Security against Fraud and Other Risks
Security is one of the biggest concerns in the digital world. However, data analytics could help in improving organizational security alongside ensuring fraud prevention. In addition, the use of analytics in big data assembled by companies could enable proactive identification of fraudulent activity. Predictive analytics can help use statistical, path and network methodologies to provide alerts to fraudulent activity. The advantage of real-time threat detection processes alongside automated alerts with data analytics can improve fraud risk management.
In addition, the use of data and analytics mechanisms also enables enterprise-wide data integration and correlation. It can allow a unified view of possibilities for fraud in different lines of transactions, businesses and products. Furthermore, the functionalities of multi-genre analytics could also provide a better and more accurate impression of fraud trends and forecasts.
The benefits of big data analytics show how analytics can help businesses offer personalized experiences to customers in marketing as well as products and services. At the same time, data analytics can also provide vital insights for improved decision making and risk management. How can enterprises use these benefits to their advantage in real-life use cases? Get in touch with credible data analytics solution providers like Visvero and make the most of these benefits.
What Are The Benefits of Data Analytics for Different Sectors?
Now that you know about the different benefits of data analytics let us look at how data analytics affects different sectors.
The telecommunication sector is one of the emerging sectors experimenting with the use of big data and analytics in present times. The telecommunication sector is actively working on the use of data analytics to introduce improvements in significant areas. Apart from the evident benefit of better customer experiences, the telecommunication sector offers better prospects for dynamic pricing, fraud reduction and churn prediction. With the plans for rolling out 5G networks gaining momentum, big data can play a crucial role in optimizing network planning. At the same time, data analytics could also support efficient network monitoring and management.
Another notable industry that has capitalized on the value of data analytics refers to healthcare. One of the most notable use cases would obviously point at the healthcare claims data analytics applications. Apart from safeguards against fraudulent insurance claims, data analytics could also improve the speed of healthcare insurance claims processing. In addition, data analytics could also drive considerable improvements in the quality of healthcare for patients. The facility of better collaboration between healthcare providers, nursing staff and support teams with data analytics can ensure better healthcare services for patients. Furthermore, a detailed impression of patients’ medical records could help in understanding their medical needs accurately.
The prominent examples of using data analytics in healthcare industry and other sectors offer a strong base for the growth of data analytics. If you look closely, data analytics is all about learning more from the data you have at hand. Data analytics helps you learn more from data, albeit with the support of many innovative tools and technologies. Learn more about data analytics and avail reliable data analytics solutions with Visvero right now.