How to Use Data Analytics to Get Ahead in Business

Data analytics platforms can be tremendously valuable for business professionals seeking reliable insights and tracking trends. How can and should they use these tools for the best results?

Understand Customer Behaviors

No matter a company’s industry, its customers are arguably some of the most important drivers of its success. However, the things they choose to buy, in what quantities and how often are factors that can differ depending on an individual’s background, needs, income level and other attributes. The weather, perceived demand for items and whether the consumer perceives the products as exclusive or hard to find can also influence their purchasing decisions.

Data analytics can sort through vast amounts of information much faster than humans could without help. That makes it easier for business professionals to determine which products are most likely to sell the fastest in certain markets or other particulars of customer behaviors that affect company performance.

Many of Walmart’s suppliers appreciate data-driven insights because so many consumers depend on the retail chain to meet their needs. Statistics show that 144 million people visit its website or stores each week to shop. Many of the company’s supply chain partners use a data analytics product that can show changes within specific customer segments to help professionals adjust accordingly. Such insights prevent overstocks while pleasing those who purchase from Walmart to meet their everyday needs.

Optimize Organizational Efficiency

Data analytics tools can also reveal persistent bottlenecks, inefficient or unnecessary processes, and other internal occurrences that may combine to make a business less impactful. Many industrial facilities — such as manufacturing plants — use sensors that collect real-time information and feed it directly into cloud-based analytics platforms. That can highlight potential problems for leaders to address. However, these executives must also overcome data quality issues, which can increase as volumes rise.

Employee interviews can also help leaders get to the bottom of internal inefficiencies and how to improve them. Speaking to workers about their daily duties and what they like best and least about them can be extremely revealing. Additionally, executives overseeing large companies can feed the responses into data analysis platforms to detect trends. The results will show what the business is doing well and where it should improve. Meaningful and positive changes could improve employee retention rates and show them how management cares about boosting productivity where possible.

Data analytics tools may also indicate people are experiencing alert fatigue due to the number of messages they receive on their work devices or interfaces. One accessible solution may be to tweak settings, such as turning off some notifications or adjusting when they appear.

Track Employee Performance Metrics

Workers are just as important as customers for keeping a business successful. Decision-makers should consider using data analysis tools that show them relevant statistics about employee productivity. Suppose the interface shows how employee performance drops at specific times during their shifts. That could mean managers should restructure their break schedules or make other meaningful adjustments to address this apparent fatigue.

Leaders can also use data analysis tools to gain insights into worker absenteeism related to injuries or illnesses. Spikes in those figures might suggest the need to invest in employee safety or health management initiatives.

One study showed absenteeism costs $1,695 per employee on average each year. Another finding was that chronic health conditions comprise the bulk of those instances, and companies could help workers manage them with preventive measures and specific programs.

Worker absences make it more challenging for businesses to meet internal goals and client expectations. However, data analytics tools can pinpoint the most frequent causes, showing leaders the best paths to improvement.

Adopt a Data-Driven Approach

Many business representatives need assistance in understanding how to use data analytics tools. Training and time can help, but building an organizational culture where people recognize and embrace data for decision-making rather than relying on educated guesses is just as important.

Progress begins with the selection of appropriate data analytics tools. Leaders should evaluate the options based on a company’s size, needs and objectives. It is also necessary for people at all organizational levels to build capabilities to work with the information. Developing data literacy is vital because it enables accurate interpretation of the outputs. Advanced tools can be instrumental in a company’s success, but only when people understand the conclusions.

Unlock the Power of Data Analytics

Thanks to these thought-provoking examples, business leaders everywhere can begin relying on specialized data analytics tools within all operational facets. Their ongoing progress can support the bottom line and employee well-being while bringing other meaningful benefits.