11 Ways Data Analysis Can Boost Your Bottom Line

11 Ways Data Analysis Can Boost Your Bottom Line

Don't Measure EverythingDon’t Measure Everything

It is best not to calculate everything. Concentrate on a few macro, actionable metrics, like revenue per customer or the cost to acquire new customers. Every action you take should be to affect one or more of these metrics. Measure before and after to see if you changed anything.

Know Your Customers WellKnow Your Customers Well

To get beyond demographics, location and other standard user metrics, use session or event data to further segment and identify user groups. Their behaviors may be unique to how they interact with your product, which could help predict future actions.

User Behavior and Social MediaUser Behavior and Social Media

Integrate data from internal and external sources, like social media, to get a 360° view of the customer. If someone tweets immediately after a purchase on your site, you want to know whether they’re saying good or bad things about the product.

Analyze Data in Real-TimeAnalyze Data in Real-Time

Real-time, in-session analytics make a huge difference. They help drive new revenue with customized offers and recommendations, targeted advertising, and custom user paths. Real-time analytics can also help save costs with fraud detection, network monitoring and inventory management.

Examine Entire Data SetsExamine Entire Data Sets

Study all your data, not just a sample. You must be able to search, analyze and visualize granular transactional data and web and mobile data on a massive scale. This will give you the true, full picture.

One Size Cannot Fit AllOne Size Cannot Fit All

A single analytics product cannot solve the data and analytics requirements mentioned in the previous. Find complementary tools to co-exist with your organization’s analytics infrastructure, especially ones that don’t require wholesale retooling of the infrastructure and personnel’s skill sets.

Your Data Is TemporalYour Data Is Temporal

Examine data across all time-horizons, such as historical, current and predictive, especially for automated decision-making. This helps expose time-related variability, like seasonal effects.

Statistics Is Your FriendStatistics Is Your Friend

Multidimensional statistical analyses, like regression analysis, market basket analysis and other mainstays of advanced analytics reveal correlations quickly and better slice and dice your data.

Simulate Many What-If ScenariosSimulate Many What-If Scenarios

Simulations can help you quickly test models and assumptions. You need to perform free form, what-if analyses to forecast alternatives without having to define rigid data models upfront.

Experiment Early and OftenExperiment Early and Often

A/B test assumptions about your products and marketing campaigns and engage in other controlled experiments to gain insights quickly. This testing will lead to better-informed decisions.

Share Insights BroadlyShare Insights Broadly

Share across your entire organization, not just at the executive level. Empower employees on the front lines to make better day-to-day decisions with the right analytics. For example, give customer support staff real-time information on what the customer did with a product just before he or she called the support line.

Karen A. Frenkel
Karen A. Frenkel
Karen A. Frenkel is a contributor to CIO Insight. She covers cybersecurity topics such as digital transformation, vulnerabilities, phishing, malware, and information governance.

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