We live in a world where every individual generates data that can be used for business purposes. After all, this is why big social media platforms (Facebook, looking at you!) and even Google have come under fire during the last couple of years. It's all about data analysis tools and how that data is used.
But why are businesses so interested in users’ data? At an individual level, it’s difficult to understand how following a user’s interaction with an online property (website, landing page, social media channel, and so on) can be useful. However, when you zoom out and look at data coming from millions of users that interact with your field of business, you can easily understand trends and take action accordingly.
But to get there, you need a series of tools and processes designed to help us make sense of Big Data.
Businesses and organizations can’t understand data as is. First of all, the sheer amount of data created every minute is overwhelming for the human mind. Second, during its collection phase, raw data comes in lots of formats, which makes it impossible to understand.
This is where data analysis tools or business analytics come into play. These tools are designed to check, process, and understand the data they are fed and spit out intelligible reports and graphs that help decision-makers.
Since each business has different needs and industries measure different metrics and observe various factors, there are a variety of data analysis tools on the market. So, the best way to improve business efficiency and competitiveness is to find the right tools for your needs.
Moving forward, we’ll have a look at the benefits that various analytics tools bring for businesses and how to use them to your advantage.
Customer Experience (CX) is one of the determining factors when it comes to success. Online businesses use personalization and data-driven marketing campaigns to ensure their efforts are targeted at the right audience and increase conversions.
But you need accurate data to increase online conversions. The data will show how the users interact with your pages, why they leave, and if there are any holes in your sales funnel (among others). This is why tools like Google Analytics and similar are essential in the decision-making process as key data analysis tools.
A successful product launch doesn’t mean your job is done. You still need to understand how customers interact with the product and if it solves their problems efficiently. Nowadays, you can do all that by using a product analytics platform, such as Smartlook, Amplitude or Mixpanel.
Product analytics software is a great tool that helps businesses gain deeper insight into how customers perceive their products by gathering data from various sources (social media, news, group chats, and so on).
One way to generate more profit is to cut unnecessary costs. However, without an accurate analysis of your business processes and systems, it’s difficult to identify costs that aren’t serving your goals anymore.
Data analysis is extremely helpful in discovering such clues and pinpointing better courses of action because you get a bird’s eye view of the entire organization. On the same side, a thorough analysis will let you know which departments need more funding for your plans to be successful.
Big Data and data analysis tools help businesses and organizations navigate markets with more accuracy and efficiency. If you know where to look, you don’t have to guess anymore, which means there will be fewer unnecessary expenses and mistakes. As a result, progress happens at a faster rate, and both businesses and customers benefit from this.
Overall, businesses that take a data-driven approach have the best chances at being successful.