Why Data Analytics?
It all begins with a question: What is the most effective marketing tactic I can leverage for new sales? Why aren’t my customers purchasing my latest product? Where can we cut costs without sacrificing quality? Business leaders constantly seek answers in order to drive their businesses forward. To answer these problems with precision, companies need to delve into qualitative details beyond mere profit and loss statements—this is where data comes in.
Data can seem daunting to some (flashback to anyone who disliked Math classes in high school). At first glance, it appears to be an endless sea of information, too dark and vast to explore. However, for a data analyst, it’s like a table full of ingredients. Any one of these ingredients alone may not be delicious or satisfying, but a skilled analyst knows how to combine them in just the right way to create a coherent and insightful narrative. The result? Clear answers to the most pressing business questions—or, to continue the cooking analogy, a delicious dish.
In the absence of robust data analysis, companies often default to traditional practices or repetitive patterns in their decision-making processes. While there are situations where quick decisions are necessary and do not require extensive deliberation, relying solely on instinct or past practices can be limiting and sometimes detrimental. Returning to our chef analogy, this is akin to throwing the breaded chicken tenders you have in the freezer into the oven for dinner. Yes, it will feed your guests, but it’s hardly a great meal. When it comes to critical decisions, data analysis is like adding herbs and spices to transform a basic dish into something exceptional.
Understanding the ‘why’ behind data analysis is as simple as recognizing the need to further your business. It provides objective insights that go beyond intuition. It helps in identifying trends, understanding customer behavior, and uncovering inefficiencies at a granular level. For instance, a company’s favorite marketing campaign may not be the best at driving new sales; a new product might be targeting the wrong audience; and the most obvious cost-saving methods could compromise quality. In the same way a chef knows specific ingredients to enhance a dish, an analyst knows how to enhance business strategies and operations with the right data. Just like a well-crafted main course, the right blend of data ingredients can yield impressive results, turning ordinary businesses into extraordinary ones.