WHY SHOULD I USE DATA ANALYSIS?
As a business owner, have you ever been in a situation where you needed to make the best decision regarding the growth of your business? You should read this!
Data Analysis has long been in existence since the 17th century but it has not been as widely used as it is today. We’re now in a data-driven world where the business of the day is using data to gain insights that would help improve decision making across all spheres of life.
Concepts
- Data: This can be defined as unprocessed information. Oxford Dictionary better describes it as ,facts and statistics collected together for reference or analysis.
- Data Analysis : In my own words, data analysis is the process of using some specific tools for collecting, cleaning, exploring and transforming data with the goal of gaining useful information or insights that can be used to influence better decision making.
- Data Analyst: A person whose job is to gather and interpret data in order to solve a particular problem.
Now, what are the benefits of data analysis?
Data has a lot of potential but data analysis helps to uncover that power. Let's look at the benefits together.
- Improved Decision Making.
Businesses can use data analysis to make the best decisions for their organizations. Take for instance, a sales company that recently noticed a high customer churn rate. They could use the data gathered from the customers to check what the problem was and what to focus on to fix that problem.
Also, data can be used to build models that can make accurate predictions. Predictive analytics can suggest what could happen in response to changes to the business and would also indicate how the company should handle those changes.
- Effective Marketing.
The stand out difference between businesses is always the marketing strategy. By using data analysis, companies can understand precisely what their customers want. The data gotten helps the businesses analyse the customer trends, which can then be used to develop a focused and targeted marketing.
- Mitigate Risks.
There is no business without risks. Risks could be employee safety, legal liabilities, employee theft and the likes. Data Analysis could help a business understand those risks and take preventive measures. An instance is, a business could build a model that can predict future actions or events based on past events, like predicting which branch are at the highest risk for theft. The business could then use the information to prevent the theft from happening by putting security measures in place.
Thanks to data analysis, the world’s most successful companies are constantly growing. Data Analysis is your best bet at having a rapid growth and a high customer retention rate in your business.
