Several successful companies today whether they’re based on online or brick and mortar have started to utilize some sort of technologies to support their key business functions like storing customer details, tracking sales and marketing activities; and handling entire finances. They recognized that investing in technology could drive better business results. Especially, technology is most commonly used to solve some complex business problems associated with management, advertising, customer support, and decision-making. In addition, enterprises are turning towards advanced tools for help. Data analytics is one such technology and the analytics tools are significantly used by businesses to diagnose and address business problems. This article highlights the problems that can be solved with the analytical solutions.About Analytics
Analytics make businesses understand what they are doing right and what they are doing wrong. In addition, it displays what is working and what is not working on all sides of marketing, including content, social media, and email marketing. The action of measuring instead of guessing enables businesses to attain almost a sure thing. For instances, analytics allow discovering content that the audience really likes and shares. Spending devoted time on social media activities usually provides a net benefit, but in several cases, spending some of those hours on analysis will lead to a large benefit. That offers the knowledge to streamline business activities and results in better outcome from those activities.
Why Use Analytics Tools to Solve the Business Problem?
Businesses often forget that the most complex business issues can be solved using analytics by involving the latest data analytics tools. It is important to realize that around 70% - 80 % of the analyst’s time is spent on generating the analytical files. Only the remaining 20% -30% is spent on building a solution. Here, the approach to solution development involves predictive models or straightforward business rules. With analytics tools, a business can extract the simple structured data and reduce its effort in extracting unstructured and semi-structured information. The analytics tools used in problem-solving have two criteria:
1. Ease in the generation of analytic files
2. A simple business algorithm in the formation of a solution
The rapid demand for an analytical solution has forced the enterprises to invest in analytics tools that can enable the business users and employees across the enterprise to obtain answers to, what they require. With these powerful tools, businesses can allow them to do advanced analytics without demanding any programming support of data scientists. Thereby enterprises will find a new competitive advantage and power to uncover previously unseen trends that project them into an influential position.
7 Common Problems Solved with Data Analytics Solution
- Making Sense of Unused Business Data
With the reducing cost of cloud storage, enterprises today are accumulating more data. There is no in data collection, but the reality is that enterprises only use about 1% of their stored data to make valuable business decisions. It is because they cannot find the appropriate data. The competency to search and retrieve data is the most vital action for enhancing business and realizing the power of big data. In addition, the search technology should be fast, and contextual to read complex information so it is usable for employees across the entire levels of an organization. This is where the analytical solution steps in. It streamlines data to be accessible and consumable to everyone.
- Minimize Misleading Revenue Models and Forecast
Businesses frequently anticipate revenue with rough models. In addition, these models always point out a single part of the estimate for every month going forward. A real fact is revenues can fluctuate disorderly and companies have excessive uncertainty about next month, next quarter or year.
Data analytics solve this challenge by properly accounting for certain mechanisms by which businesses generate revenue and the improbability in sales. Therefore, in addition to the best revenue estimate, a business can gain transparency into the inconsistency if there are varied revenue results.
- Highlight Micro Mistakes
Often business analysts are caught up in solving relatively large issues with predictive analysis. However, focusing on the small decisions that are made several times tends to provide better results. This includes what checkbox to pre-check, what part of the website a customer is most likely to use or what item they’re more likely to purchase. Even though improving these things can yield a considerably smaller percentage of gain, the total improvement can be great as they occur so frequently.
- Diminish Challenges in Customer Service
The analytics software can be used to offer better customer services and deepen their relationships. Analytics can play a vital role in decreasing and eliminating customer problems before they occur. Just imagine a customer receiving a call from a company with a solution for a product recall, before he or she encounters the issue. By creating data from multiple sources, analytics can be employed to be proactive. It helps to realize what is lagging and address it before a customer awakes. This technique can support any enterprise to convert mountains of data into useful insights that strengthen customer relationships.
- Make Companies Proactive instead of Reactive
With the advent of new channels and regulations in the global economy, there are countless changes in the way companies doing business. Companies require upholding awareness – be proactive instead of reactive to these changes. Analytics can support companies in the following ways:
- Support to remain relevant to the customers
- Offer insight into trends influencing the industry
- Alert of macroeconomic influence that may cause local operations
- Priority of Urgent
Most of the business executives and owners virtually spend all of their time and effort on critical things. They don't even consider spending on activities that are both critical and urgent. The primary reason is that the most businesses are not functioning based on a strategic plan. While urgent tasks come with any business, relying on a strategic plan can guarantee that at least some time is allotted to the acute success factors. Analytics software gives business a valuable insight about an issue that could be brewing.
- Removing the Unknown
Uncertainty is one of the huge issues business leaders are facing today. Whether it is over their customer retention, workforce or service – uncertainty possesses its own way of routing decision paralysis. Analytics can encourage companies to make a decision in line with insight, not on hindsight. Changing decisions based on existing data will solve a plenty of business unknowns. Data analytics tools support them to build a customer profile, determine exit triggers, and offer a kind of customized marketing strategy that makes the customer stay for a long period.
Data analytics help enterprises to solve these complex issues and make enterprises confident in moving forward with the best analytical reports. Data is now competent enough to improve any business process, whether it is optimizing the communication in the supply chain or enhancing the relevance and quality of business offerings.