Uncovering the Top Benefits of Data Analytics for Your Business

A survey by Micro Strategy found that companies all across the world use data.

• They use data to increase their operations’ processes and cost-efficiency by up to 60%.
• 57% of businesses use data analytics to inform strategy and transformation.
• 52% of businesses use business analytics to track and enhance financial performance.

Businesses may now get information from customers at every stage of their journey. The use of mobile apps, online clicks, social media activities, and other tools are part of this data.

Together, these factors create a data fingerprint entirely personalized to its owner. This article will discuss the benefits of data analytics in business.

What is Business Data Analytics?

Business analytics is evaluating data to produce actionable insights is the process of business analytics. Thanks to innovative methods like machine learning algorithms, data analytics is expanding at an alarming rate.

Data analytics helps company decision-making processes, which is one of its unique perks. Additionally, you can customize marketing messages and create targeted offers using data. You need visualization techniques to profit from data analytics. Continue reading to discover the advantages of data analytics for your business.

Top 5 Benefits of Data Analytics in Business

So, how can your business benefit from data analytics?

1-Aids in the decision-making process

Despite the emergence of new technologies, some organizations rely more on intuition than facts and figures. The lack of availability of high-quality data to support decision-making processes may be one of the leading causes of this.

But thanks to business analytics, you can separate valuable raw data from its noise. And doing so can save a ton of time. Just picture the competitive advantage you would gain from using data to inform your strategic choices.

2-Identify behavioral changes in your customers.

Customers have a wider variety of options in the modern world. The constant exposure to new information during the purchasing process causes customers to change their perspectives.

You can hardly make sense of all the market fluctuations, given the volume of data. But you can thrive if your company is in line with the wants and expectations of your clients.

Data analytics may help you find solutions to questions regarding the shifting market behavior, which is one of its main advantages. Charts make it simple to highlight significant changes in taste and preference.

3-Boost work efficiency

Boosting work efficiency is one of the benefits of data analytics in business. Consequently, analytics can increase employee productivity and efficiency. Put another way, you can use data to forecast threats like diminishing productivity.

You can track productivity metrics in real-time using charts and graphs. Using a sound business analytics strategy, you may quickly identify improvement opportunities in your workplace or company.

4-Products, ideas, and business expansion that are innovative

A business can no longer rely on instinct to succeed in the market today. If used correctly, data-driven business growth can positively impact your company. Companies can carry out surveys and gather lots of data. The data analysis continues to assist businesses in reinventing both new and old products. Teams can identify what annoys their client base by gathering a lot of data.

Organizations may now create systems to track a 360-degree picture of the business from sales, marketing, operations, and more. As a result, they can facilitate innovation in every company area and boost business growth.

5-Individualization of business offers

The days of selling a conventional set of goods and services to customers with ease are long gone. Market demand is high for goods and services catering to customers’ specific requirements.

Data analytics can assist you in keeping track of the tastes, preferences, and demands of your target market. You can use information from various attributions, including social media and websites, to develop a trustworthy persona for the market.

Why is business data analytics important?

It is okay to question why data analytics is important. Data analytics is essential since it helps businesses make decisions. Additionally, you can customize marketing communications and create niche offers using data.

But like any other business process, data analytics has perks and drawbacks. In other words, it has both advantages and disadvantages.

We’ll examine the constraints of business data analytics in the following section.

Limitations of data analytics

Inferior data quality

Access to high-quality, clear data is one of the greatest issues in business analytics. Poor data can quickly skew findings and lead to terrible choices. You might have access to enormous volumes of unprocessed data, but is it accurate? Poor data quality will lead to biased and misleading decisions.

You should improve the data’s quality before reaching any major conclusions. Only through high-quality data can you reap the benefits of data analytics in an organization.

Risk of conflict with personal interests

Consider a situation where teams or departments are misaligned at your company or place of employment. A small group of team members also handle data analytics. Additionally, only a small group of executives are allowed to exchange information.

Would everyone accept the insights favorably? Not really.

Other stakeholders may also feel excluded from decision-making and pursuing strategic objectives. All stakeholders must work together and support a strong data analytics strategy (including those at the bottom of the hierarchy).

The analytics team should provide the proper answers for the company. The resulting data story should be broadly disseminated to garner support. That way, you can enjoy the benefits of data analytics in an organization.

It needs a lot of patience and commitment

Data analytics is not a quick-fix solution like a blue magic pill or kool-aid. In other words, there is no quick return on investment (ROI). You must have faith in the process to finally reap the results of your labor.

Some business leaders may grow impatient and lose faith because business data analytics require time to mature completely. To get valuable insights, you need a sizable volume of data. However, the procedure may take longer than is necessary.

Let’s all agree to this.

Please don’t abandon your data analytics project because it didn’t produce any returns in the first several months. The advantages of data analytics outweigh the disadvantages in the end.

The best tools to get you started in data analytics

Whether you reap the rewards of data analytics or not depends on the technologies you choose to use. In the world of analytics, Google Sheets is regarded as one of the reliable tools for data visualization.

Data visualization is possible using the graphs and charts in the spreadsheet application. But the simplest graphs in Google Sheets require much time and effort to adjust and alter.

You need charts that are simple to understand to produce an engaging data story. To excel in business analytics, you must think outside Google Sheets, we don’t say you should leave Google Sheets but think for improvement in it. We advise adding third-party software (add-ons) to Google Sheets to enhance your access to:

• Polished graphs
• Simple-to-read charts
• Neat and informative charts.

ChartExpo is the add-on that we tested and got outstanding results with. It is a data visualization-based add-on that doesn’t need any programming or coding knowledge.

In addition, it offers an incredibly user-friendly interface for everyone, regardless of their experience. Second, the charts that ChartExpo creates are exceedingly simple to read and comprehend. This chart library does not slow down your browser, yet another thing we’ve noticed about it.

How to install ChartExpo in Google Sheets?

i. You can download ChartExpo directly from the Google Sheets App. To get started, click on Extensions in the top toolbar.

ii. In the menu that appears, go to Add-ons press the option Get add-ons.

iii. Search for ChartExpo in the bar and click the Charts, Graphs & Visualizations by ChartExpo when it appears in the results.

iv. Press the Install button. you will have to accept some permissions and you may have to confirm your Google account.

There is another direct way to install ChartExpo by clicking on below link as well for your desire tool.

How to create visualizations for data analytics?

Let’s suppose you have a data of customer feedback on product.

Scale is the rating you got from customer.

1 = Highly Disagree

2= Disagree

3=Neutral

4=Agree

5=Highly Agree

Whereas the response columns showing the total number of feedback against that particular rating for that question.

Questions	Scale	Responses
I felt very stylish whenever I put these shoes on	1	80
I felt very stylish whenever I put these shoes on	2	70
I felt very stylish whenever I put these shoes on	3	130
I felt very stylish whenever I put these shoes on	4	200
I felt very stylish whenever I put these shoes on	5	250
I am confident about the quality of shoes	1	90
I am confident about the quality of shoes	2	120
I am confident about the quality of shoes	3	100
I am confident about the quality of shoes	4	200
I am confident about the quality of shoes	5	250
I will recommend these shoes to others	1	100
I will recommend these shoes to others	2	210
I will recommend these shoes to others	3	200
I will recommend these shoes to others	4	180
I will recommend these shoes to others	5	300
I will plan to buy these shoes for friends or family members	1	80
I will plan to buy these shoes for friends or family members	2	100
I will plan to buy these shoes for friends or family members	3	120
I will plan to buy these shoes for friends or family members	4	150
I will plan to buy these shoes for friends or family members	5	200

Now it is very hard to digest this data table. You cannot have idea at first look that what is going on with this data.  But keep reading to see the same data table converted to visualization by ChartExpo which will give you overall idea at first glance and will help you to find the best analytics.

Once ChartExpo is installed, now you can click on Extension menu and click to Open Charts, Graphs & Visualizations by ChartExpo.

You will see ChartExpo window loaded in the right side of the Google Sheets.

Once you will click on “Add new chart” button, list of charts will appear. Let’s pick Likert Scale Chart, this visualization is wonderful to present your survey feedback data.

Once you select the chart, it’s time to put your data in the spreadsheet.  Now select the sheet from the drop down which contains your data.

Then select the Metrics option, then select the sheet containing your data. In this example, we’ll select Responses as metric column.

Under dimensions section select the dimensions from the data column header names (in our case, we’ll use Questions & Scale).

Click on the “Create chart” button, your visualization will be ready as shown below.

Insights:

• The first question about “I felt very stylish whenever I put these shoes on” around 61% agreed with this statement. While 21% reported in negative. There are 18% who remained neutral with this statement.
• 33% are in total in favor of the quality of the shoes is fine. Whereas still there are 12% who are not confident about the quality of the shoes.
• 30% respondents highly agreed to recommend these shoes to others and 10% highly disagreed to this statement.
• 31% also responded to buy for friends and family member. 23% are slightly less agreed to buy for friends and 12% are highly disagreed to buy for someone else.
• Overall if you analyze the data, you will see 55% are in the favor of the questions asked about the product. 18% remained neutral and 27% disagreed somehow.

Now the above visualization is exactly showing the same data table but in meaningful way only because of this wonderful ChartExpo’s visualization.

FAQs:

What is the key advantage of analytics?

Data analytics helps businesses design, control, and optimize operations and products to meet consumer expectations.

What is data analytics, and why is it important?

Business analytics is investigating data to obtain insightful conclusions. Customers demand a seamless, relevant experience and expect businesses to recognize them wherever they interact. That is why data analytics is important.

Wrap Up:

In the current economic climate, data is increasingly used to decide who wins and who loses. There are countless advantages to data analytics; nevertheless, we’ll only highlight a few key ones.

Various tools and approaches, such as visualization, and business analytics, plays a crucial role in assisting you in telling a compelling story from raw data.

The fact that data analytics simplifies company decision-making is one of its advantages. Additionally, you can customize marketing communications and create targeted offers for your organization using data.

Advanced analytical methods can help organize staff per consumer demand and business needs. As a result, you can boost field operations productivity and efficiency.

The most effective use of data analytics will also ensure that ongoing continuous improvements are implemented. That is a result of end-to-end visibility and monitoring of critical operational parameters.