The largest and most successful companies have reached elite status in the business world through leveraging data and analytics
Data analytics in business has been growing tremendously in popularity since at least the early 2000s, so much so that it would be impossible to stay competitive in almost any industry without using this powerful tool. The largest and most successful companies like Google and Amazon have reached elite status in the business world through leveraging data and analytics to understand their users and outperform their competition. While there are numerous ways to incorporate data and analytics to increase business performance, here are some of the most applicable uses to enhance your business today.
Product Creation
Data analytics is used in the inception phase of a business to identify consumer preferences and/or needs and then create a product that serves the market opportunity identified. Our modern world is extremely competitive with nearly unlimited variety in products and services offered. It is therefore imperative to identify a product or service that has a chance of outperforming competition before the business endeavor even starts. Successful companies also use data to align products with current and future forming trends as maintaining user engagement and interest is key in operating a successful business. Coca Cola was able to identify a new profitable product in Cherry Sprite by utilizing data analytics to create the product by analyzing consumer preference.
Marketing Campaign
Data analytics is especially important in implementing successful marketing campaigns as knowing precisely who the consumer is and what avenues they can best be reached is essential in attracting and retaining customers. Netflix is a good example of this as they are able to utilize the plethora of consumer data they have collected to market their own products via their own streaming service by suggesting their content to relevant users. They even use the data to create new films and shows based on consumer feedback to hire the directors and actors that are predicted to induce the highest interest and engagement, linking product creation with marketing through their own platform.
Pricing Models
Data analytics can be used to obtain maximum profit from consumers by understanding the value of the product at specific times and places. This can be best observed in both the sporting and airline industries. Specifically, the St. Louis Cardinals utilize dynamic pricing which incorporates the team’s performance, weather, and recent demand to update ticket prices daily. For airlines, because profit margins are so slim in the industry, utilizing data to adjust pricing regularly is so vital that it would be impossible to retain any market share in the industry without it.
Update Operations
The modern world changes fast and businesses need to adjust regularly in order to stay competitive. Businesses can leverage data analytics to achieve or improve profitability by better understanding the business itself and identifying areas where improvement is needed. If a business is able to cut unnecessary costs and better streamline processes through data analytics, they can use the cash generated from higher profit to further grow the business. While using data to improve internal operations is extremely beneficial, it is also used externally to understand consumers and adjust operations based on current trends. For example, the data clearly shows a rising interest in cryptocurrency and businesses like Starbucks are starting to take notice and capitalize on the trend by increasingly accepting payment via this method.
Utilizing the power of data analytics allows business superior performance. Whether large or small, all business types can benefit from incorporating data analytics into all or some decisions as data enables businesses to make decisions in the most informed way possible.
Are you ready to leverage the power of data and analytics into your business? At M1 Data, we offer a variety of high-quality data service packages that have enabled numerous businesses greater success.
Contact us today to understand how our data solutions can meet your business needs.
