Can data analytics transform your business? The answer is simply yes, in fact, it is a powerful tool for business expansion. Companies like Amazon, Spotify, Netflix and many more are relying on analytics for new opportunities. It is important to understand the significance of data analytics for every business regardless of size and model. Let’s start from the essential questions that arise when we question whether to invest in data analytics.
What is data analytics and how does it work?
Data analytics – is the science of analyzing, cleansing, transforming data into useful information for business strategies, marketing campaigns and rational decision making. Analytics are crucial for business since it detects bugs, crashes, and issues that could lead to business failure. In fact, the use of analytics brings in a higher number of customers and improves business performance. To illustrate it, Analyticsinsight website claim that for a typical Fortune 1000 organization, a 10% expansion in accessible data can mean an increment of more than $65 million in the total income.
Data runs a common refrain, is the new oil – The Economist
Analytics is a powerful tool to understand human behavior and build deeper engagement with customers, it puts companies in a stronger competitive position. According to NewVantage Partner and their Big data and AI executive survey 2019 results showed that firms report notable success in deriving benefits in customer service from 22.3% to 57.1% success, which is more than double the primary data. In fact, expense reduction the low-hanging fruit of Big Data/AI investments continues to account for success with an 18.9% increase and 59.5% rate of success. Evidently statistics show that companies are starting progressively to rely on analytics and the benefits are plain to see.
Trusting analytics means:
1. Improving product
Indicators like duration and most searched can detect which products make the most of the profit compared to others, how users are adopting the latest release and which products are the most relevant. It helps companies to stay competitive in a way that delivers the best products while new technologies are evolving.
2. Enhance marketing effectiveness
Information about marketing campaign operations are of crucial importance for business growth. Notifications, promo codes and email codes allow businesses to detect which marketing campaigns were rewarding. Analytics makes it is easier and more reliable to detect it.
3. Increase customer retention
Analytical reports allow customers to understand which feature leads to retention, what are the customers’ needs, where users are engaging the most, it shows user activity in a custom period of time, average daily engagement and so forth. This information is a direct way to understand the key insights of customer retention.
4. Guide the business
With analytical reports, companies can detect which business strategies and marketing campaigns are making profits. Analytics can provide the most significant information for businesses that can guide them to success.
5. Improving the customer experience
The success of customer experience is to meet users needs. Companies, who trust analytics have the full visibility into users actions and their behavioral data. Applying analytics to optimize customer experience is the way to improve engagement. It allows to get personal and respond fast. To give you an idea, Netflix creates personalized content recommendations for users. Also, from collected data it creates shows that meets user interests, such as Orange is the New Black show.
6. Data driven decision-making
Only by knowing your target well you can make rational decisions that will lead you to better results. Data reports provide with the most necessary information about business. Data & Analytics help executives make business-defining decisions better and faster. Short video that illustrates it: https://www.youtube.com/watch?v=6naW6Kg23q4
Sustainable growth comes from understanding your best customers how to find and acquire more of them – Sean Ellis
Companies have various success stories on how analytics helped them to gain popularity, solve problems or boost purchases. One of the most reliable tracking tool – Firebase, which is trusted by the largest companies, such as Doulingo, The Economist, and Shazam, it helps them to tackle demanding challenges and gain valuable insights. Kobe is one of the users as the tracking tool stands out for high quality and credibility. There are noteworthy practices that Firebase changed companies completely.
Represents themselves as the simplest way to schedule meetings with clients, colleagues, or friends. It is an online calendar tool to mark events that matter.
Doodle company’s goal was to increase engagement and retention. They first improved the app’s stability with Crashlytics, then ran A/B tests on their onboarding and poll creation feature with Firebase Remote Config.
- 42% increase in poll creation
- 6% Better 7-day retention
- 15% more daily active users
“Crashlytics saved us time by surfacing crashes and helping us pinpoint their root cause,” says Alexander Thiele
2. Halfbrick Studios
It is a professional game development studio, based in Australia, Brisbane. They are known for user beloved games such as Fruit Ninja, JetpackJoyride, and Dan the Man.
Their goal was to boost user retention. Halfbrick Studios are targeting users based on predicted behavior, rather than historic, which provides more accurate results. They set up a 3-variant experiment testing whether they could boost retention by offering a pop-up with a gift of in-game currency.
- 20% boost in 7-day retention rate.
It is a shopping center, located in Bucharest, Romania. With over 17 million visits every year,
Baneasa Shopping City uses its app CITY iLOVE to increase loyalty among customers.
Goals: drive app installs and new accounts, maintain or reduce cost per install, increase in-app engagements. They used several approaches, such as to monitor in-app actions, identify the audience and create conversion funnels.
- Increased app installs by 43%
- Reduced cost per install by 65%
- Grew in-app actions by 180%
In this digital era, where technology is developing at a fast pace, it is vital for companies to keep up to date in order to stay competitive. The number of companies that rely on data is growing exponentially and it is not going to stop, as the benefits are enormous. The age of analytics is here and there is no better time to start using it than now.
If you are still wondering about investment in analytics, these videos will help you to make a decision:
Successful Apps that used data analytics to grow & scale
Annual Bloomberg conference about data analytics, highlights the importance of data analytics
Yasmeen Ahmad – Director at Think Big Analytics highlights the value of data analytics.