The generation of data
We are living in the age of the fourth industrial revolution where data is the new electricity.
Each day, around 2.5 exabytes of data is created and the need for data has risen tremendously over the last decade. Data analytics is increasingly adopted across industries, starting from Retail, E-commerce, Logistic, Medicine and up to Manufacturing and Education.
Studies show that data-driven organizations can make better strategic decisions, maintain high operational efficiency, increase revenue and customer satisfaction.
Perks of data-driven organizations
In order for a business to exist and grow continually, it is vital to make the right strategic decisions. When data analytics is used properly, it plays a very important role.
On the one hand it helps to specify what currently exists, so you can forecast the impact of any decision on your business.
On the other hand, data is logical and concrete in a way that intuition is not. By including objective elements for your business decisions you instill confidence, which allows you to commit fully to a particular vision or strategy without being worried that the decision you made is right. As a result, you can identify business opportunities before your competition does, or detect threats before they grow seriously.
Benefits in numbers
The main objective of any company is to minimize the expenses and to maximize the profit. Data analytics plays a vital role when it comes to increasing profit and reducing costs, and it is substantial in order to achieve a balanced Business Strategy.
According to a report on “Big Data Use Cases 2015 — Getting Real On Data Monetization“, 40% of the companies leveraging data are enjoying diverse benefits like a better understanding of consumer behavior (52%), better strategic decisions (69%), and cost reductions (47%).
Moreover, the organizations have reported an average of 10% reduction in costs and an 8% increase in revenues from analyzing data. As we can see from the results, you obtain significant positive impact when you know how to read and apply the data reports correctly.
How Data Drives Customer Satisfaction
Furthermore, most successful companies in the world are focused on consumer satisfaction as well.
Customers want to have a smooth experience and communication with companies in order to avoid inconveniences and frustrations. According to research, the probability to sell to existing customers is between 60% and 70%, while selling to a new customer is 5-20%.
To control this situation, companies use different data analytics strategies to collect information from different channels in order to better understand and identify customers’ needs and history, so they can adjust the sales and marketing strategies appropriately.
Beware of the right data interpretation
However, one should be aware that, just because decisions are based on data it does not mean that it will always be correct. If the data interpretation or the collection is incorrect, then the decisions based on the data would be inaccurate.
That’s why it is very important to seek professional help in order to avoid these inconvenient situation for a business to occur.
Find out about our success stories in the reference below or talk to one of our Data Science experts