With so much of a company’s marketing and customer base accessing them through online sources, data analytics are a major trend that has been picking up speed for quite some time. Now, where do we even start with the phenomenon that is data analytics? Let us first define what it is. Data analytics is the process of extracting, manipulating, and categorizing data in order to determine trends and patterns that will hopefully enable a business to increase productivity and overall business strategies. One of the most common examples of data analytics is a business using their social media website to track the flow of clicks, likes, views, and comments on their posts, etc. With the data, the business is better equipped to understand it’s website traffic, and therefore can make better decisions regarding their post content, times, etc.
Sometimes, it is all too easy for companies (especially up and coming ones) to want to gather a massive amount of data so they have absolutely all angles and sources to work with when the analysis is to be completed. What many businesses are not doing is a pre-data analytics analysis – meaning they do not actually know what they waant to get out of the analysis, or what aspects they want to analyze.
You may have heard before that planning is one of the most crucial functions in any business, and this is no exception. A company must come up with what criteria and standards it wants to measure. If this is not done, the opportunity cost of gathering the data may be more than the overall results of the analytics. How so? Well, if they amount of time and money put into creating the analytics is greater than the value of the output result, then the entire process may not have been worthwhile.
When planning is done successfully, companies can benefit from product improvements, lower costs, and higher quality decision making processes.