How can businesses use data science?August 5, 2020 2021-10-04 8:22
How can businesses use data science?
How can businesses use data science?
With the rapid growth in digitalization, the amount of data generated and collected in different businesses has increased exponentially. According to Mckinsey, billions of gigabytes of data are being generated every day. This accelerated increase in data has pushed various organizations to adopt data science and become data-driven. Businesses are using data science for their day-to-day operations and critical decision-making.
So what is Data Science? In general terms, data science is a field of science that deals with the study of data to generate meaningful insights and valuable information. For businesses, such insights generated from their data are helpful in dealing with important business decisions, optimizing business processes, and also in predicting risks.
Why data science?
For both B2B and B2C businesses, the data they collect is very valuable. The businesses that are able to capitalize on the data of their customers, business, and operations have a huge competitive advantage in the market. It is evident that knowledge is power in growing a business. However, most people fail to realize that the data they possess is the fuel to generate that power. Most data goes unused due to a limited understanding of how it can help drive the business’s growth and generate positive outcomes.
Let us suppose that a supermarket has been running on loss for a few months. However, this was not the case when they first started. But now, with rising competition, they are facing a lack of customers and enough sales to drive the operations. They have been struggling to keep the business running and cannot figure out the reason for their declining customers. With no significant results from multiple discounts and digital marketing campaigns, shutting down the business might be the only option they have in mind.
However, with data science, the supermarket can conduct an in-depth study about their customers, their behaviors, and their preferences. This can help the supermarket to learn and improve several factors such as customer service, product quality, price factors, location, and asset utilization. These factors can aid in achieving a successful implementation, cut costs, and hence generate a high return on investment (ROI).
Data Science for Business
Businesses are using Data Science for the following purposes:
- Data Auditing: Without quality data, no business can implement an effective data science pipeline. Data auditing refers to the process of auditing a businesses’ data to retrieve its quality or utility for a specific purpose. An early-stage data audit helps businesses to maintain a quality data collection channel to be utilized for various advanced data analytics and AI-driven solutions.
- Advance Data Analytics: Data Analytics processes have the ability to discover and predict insights to reduce bottlenecks and risks associated with conventional business processes. It plays a vital role in helping the business explore the correlation between organizational data and performance metrics. Moreover, advanced data analytics processes provide real-time insights and help in finding fraudulent probabilities to keep the system secure from threats.
- Customer Profiling and Ranking: One of the most important aspects of a business is to define who your customer is. With customer profiling and ranking, businesses can create a set of factors to represent who the ideal customers of their product or service are based on the data of their previous customers. The information is then extensively used in targeting the right people and in making customer-focused decisions.
- KPI Tracking and Monitoring: The performance of a business is measured by its Key Performance Indicators (KPIs) and should be monitored frequently. A proper tracking mechanism involves capturing data produced by key processes that can be used as a metric to determine it’s effectiveness. Some examples of KPIs for an eCommerce store can be conversion rate, page views, average order value, etc. These metrics offer insights on various operational aspects and help in measuring and improving the company’s progress towards certain goals.
- Personalized Marketing Guide: The main goal of marketing is to generate maximum Return on Investment (ROI). However, determining the right amount of budget, audience, and the right marketing channels still remains to be a huge challenge in the marketing industry. Businesses can use Data Science to process and analyze their customer interaction and behavioral data to identify the right strategies and generate meaningful conversions.
- Data-driven business consultation: It has been seen that a data-driven business can grow up much faster than a traditional business. Due to this, many business are adopting data-driven consultations to look beyond the numbers and address the underlying factors to make well-informed decisions. With data-driven consultation, businesses are able to predict risk factors and redefine their strategies to capture untapped market possibilities.
These processes apply to anyone who wants to reinforce the value of data science to their business. Early adopters of data science have been dominating the market by capitalizing on their end-to-end data-driven processes.
Data is the most valuable resource a business can possess. Data analytics can determine the health of a business and help monitor the important KPIs and business processes for success. The right system and set of people can create long-term value for the business and its customers.
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