The words "Data Analytics" have been used quite frequently over the last few years, but what do these buzzwords mean? Let’s dive into what data analytics are and how they benefit a company and provide value for customers through this two-part blog series!
So, what is data analytics?
Data analytics is defined as the process of collecting and utilizing data to discover trends and insights that can then be turned into actionable items and decisions. It may seem complicated and intimidating, right? Most businesses today use data analytics to assist in business resolutions, whether they know it or not. For example, if sales reports show a certain product selling out quickly, a manager may decide to order a larger quantity on the next shipment. While this is a very simplified example, it still displays how data can assist administrators in making better decisions for a business.
Data analytics isn’t just used for internal business-level decisions either. At a customer level, data analytics can range from insights around customer feedback, product usage, help requests, or transactions. This can assist in decision-making related to product recommendations for customers, changes in product rotations, improving customer support, and increasing customer engagement. Every click, purchase, or interaction with technology results in that transaction being logged in a database somewhere which turns into actionable insights.
In the world today...
Reducing risks, improving operational efficiency, enhancing customer experience, and fortifying decision-making are constant efforts for enterprises, all of which analytics can expedite. The use of data analytics continues to spread at an increasing rate. In fact, 57% of organizations today are taking an insights-driven approach to their decision-making (MicroStrategy, 2020). Those same companies using data analytics to drive strategy are also seeing an average growth rate of over 30% annually (Forrester, 2018). It’s not just the corporate world using analytics either!
Coming originally from a background in education, I have seen data analytics be able to track students who are at risk of not graduating well before their senior year, compare assessments to notice correlations for individuals or groups, and provide the community with insights during COVID-19 with up-to-date case data within the school district.
...what about agriculture?
Banking, healthcare, and education are some of the top industries using data analytics today, so is the agricultural sector taking advantage of these tools? I do not believe any industry is utilizing data analytics to the fullest, as it is constantly growing and there are so many technologies that can be integrated. However, agriculture is benefitting largely from the world of data analytics and the industry is within the top five in terms of benefits from data analytics (Analytics Insights, 2019). The insights gathered from data analytics will improve AI technologies used with agriculture to maximize utilization of the land, enhance current smart equipment, and assist farmers and dealerships in machine maintenance to reduce downtime.
Every day our team sees data analytics improve dealerships’ businesses through providing actionable insights for scheduling advisors and teams based on the ticket and call activity during days and/or times that are highly active. We are excited to provide these dealerships with the data and tools needed to make successful and efficient decisions. Want to know more about how we are doing this? Keep an eye out for part two of this series to learn more!