As a professional in the data science field, Ripton Rosen is familiar with analytics and understands the real-world value of data. Business owners need to realize that analysis is not about random numbers and code; it is about extruding information from static bits and pieces to interpret it for real-world use. A well-executed analysis of data sets can tell a company who to market its newest product or service to; it can also explain the most recent changes in consumer buying patterns. Data and analytics are everything.
3 Ways To Use Analytics for Better Decision-Making in Business
With the correct information, analytics can see right through the noise to solutions and profitable operations. The process removes human emotion and most errors to provide a clean and unbiased observation about a business. Companies can use analytics in many ways, but three ways are among the most popular.
1. Consumer Research
Using consumer information, analytics professionals can tell a company who is most likely to buy a product or invest in a new promotion or service. The analysis will include data from previous purchasing habits; it might also include demographic information.
Analytics can also help a company decide on a target market. The data sets will help the company determine who is already buying their products or services and what audience might be more prone to purchase in the future.
2. Performance Drivers
According to Ripton Rosen, analytics is also perfect for determining performance drivers. For example, a company might sell a specific product or service and discover that a similar product or service from a competing company sells better or quicker. Using appropriate data sets, the company might be able to determine the specific factors leading to the competitive advantage.
Also, analytics can help companies understand more about their own products, services, and performances. By collecting and sorting data about sales, customers, and operations, an analysis can highlight how each relates to the other.
3. Risk Management
Finally, analytics can help with assessing various risks associated with a business. For example, if a company wants to market a new service or product, data from similar products and competitors can help predict performance.
Also, a company can analyze profit potential in a specific quarter using historical data. They can also predict how specific situations might upset or impact their bottom line.
The Power of Analytics
Ripton Rosen notes analytics is the unsung hero of business. Every company and its board of directors should analyze every move with the correct data before committing to product or service rollouts or responding to crises. With data and analytics, a company can create near-bulletproof plans for production and promotion, leading to greater profitability.