Companies have access to much more information now than they used to, it comes from many more sources than before, and they have much easier access to it now too. Companies could analyze: financial records, Facebook posts, website conversion rates.
However not all companies choose to use the date they receive. A divide is emerging: a gap between companies that can analyze and use data to create value and those that cannot.
Why should the companies analyze the data they collect?
- Finding correlations across different data
- Analyzing customer behavior
- Forecasting sales
- Social network comments for analyzing consumer perceptions
- Analyzing competition and market share
Companies that leverage on data-driven approach to understand customers better and forecast are more successful.
There are many ways in which using metrics can create value.
Data can unlock significant value by making information transparent and usable at much higher frequency. It allows the companies to analyze and identify critical issues and opportunities within might not appear to be a problem matter.
As organizations create and store more transactional data, they can collect more accurate and detailed performance information on everything from the results product cost has on sales revenue to marketing initiatives results, and therefore expose variability and determine successful practices. Companies are using data collection and analysis to conduct controlled experiments to make better decisions for the future.
Data allows for better segmentation of customers and therefore much more personalized value added products and services.
Data can be used to plan and improve product development. For example, companies that are using data obtained from customers can plan an after-sales service based on customer location or seasonal demand.