As the owner of a business, you’ve no doubt come across business analytics before. It might not be something you’ve done yourself, but you have heard about it and seen some of the various benefits it can provide your company. In brief, business analytics will help you make informed decisions based on concrete data. This can improve every aspect of your company, making you more efficient, improving your money management, and making life better for the customer.
Nevertheless, you still might be wondering what on earth we mean by business analytics, and how they work. If these are queries on your mind, you’ve come to the right place. Carry on reading, and you’ll learn everything you need to know:
Business Analytics Explained
How can you define business analytics? In the simplest way possible, it is a process whereby big data is analyzed within your company. Think about all the data you can and have collected, and imagine going through all of it. You organize the data into different piles, gather as much as possible, then identify patterns or look for key things that might be useful for your business.
In doing so, you’re effectively creating something called statistical models. By looking at these models, you can use the information to predict certain outcomes or guess how things will happen. It’s not a wild guess, but an informed one based on information from your company. In turn, you can take the data and use it to make decisions that lead to positive outcomes.
How Does Business Analytics Work In Practice?
You now know that business analytics involves analyzing large sets of data and coming to positive conclusions to benefit your business. However, what does this look like in the real world? Thankfully, we can look at so many clear examples of business analytics working in the modern business world.
For example, let’s say you have an online store that sells products to consumers. By running business analysis on your website, you can learn so much about how people behave on the site. This will include understanding where people come from before finding your site, and when they might leave. Your analysis could let you find a really high bounce rate from users that arrive via online ads. The data suggests that a lot of people click on your ads and visit your site, but they leave straight away. From here, you can deduce that the ads themselves are working, but your landing pages are letting you down. You can make changes, conduct further analysis, and see if things change.
This is just one example of the many ways in which analytics can fuel positive business decisions. Essentially, it’s all about breaking things down and understanding your business in more detail. Analysis helps you find concrete evidence of things, rather than you guessing. Going back to the previous example, if you notice people are clicking ads and not making purchases, your instinct might be that the ads themselves aren’t convincing enough. In reality, after analyzing the situation, you find that the ads are working, it’s the landing pages that need work. So, you divert time and resources to the real problem, rather than wasting them both on something else.
How Do You Carry Out Business Analysis?
We’ve mentioned many times the concept of acquiring data as part of business analytics. The big question is, how do you do this? How is business analysis actually carried out? The answer is relatively simple; it’s all done via software programs. Nobody can single handedly go through data and manually analyze it anymore. There is simply too much information out there for you to make sense of, so we call upon software automation to help us out.
Technically speaking, anyone can download and use business analytics software. However, more and more business owners are looking to get an online analytics degree to help them improve their business analysis. Don’t have time or money to study a degree? Looking into business intelligence training could be another option, allowing you to learn about analytics through workshops and seminars. There are consultancy companies that can help you choose the right software for your business and teach you how to use it.
By gaining the knowledge of how to properly understand analytics, it is so much easier to use all the software programs out there. Again, this isn’t technically a necessity – many of the programs are so advanced they provide enough information for you to make sense of. Also, you can hire business analysts to come in and take care of it all for you. As a small business, this might be too expensive for you, but you can think of it as an investment – or something to consider in the future.
Overall, business analytics is the process of looking at your business data, gathering it together, and drawing conclusions from it. It will help you make better decisions, and it is easily handled via modern software solutions.