Studies show that nearly 60% of companies know they’re not taking full advantage of the opportunities that data science and analytics have to offer.
In other words, while leadership at these companies recognizes the importance of data mining tools, they either aren’t sure how to use them or may not think that they’re necessary for their specific business.
Big data, however, has already completely revolutionized the way business is done — and it’s maintained that influence across a variety of markets, business models, industries, and even business sizes.
Curious to learn more about just how big data analytics has had — and will continue to have — on the way the world does business today?
Keep on reading to find out about how big data has made strategies like predictive analytics, dynamic pricing, and much more possible.
Then, learn where you can go to take advantage of what data science has to offer your company.
The Rise of Data Visualization
Another reason why many companies still shy away from data science?
Because they may struggle with how to properly collect and interpret that data.
With data visualization, you’ll get a much stronger picture of what the data you’ve collected actually means.
Data visualization consists of numerous visual communication tools like graphs, infographics, charts, and much more. This allows companies not just to get the most out of their own data, but also successfully explain that data to their target markets and clients.
This means increased authority and expertise, more compelling pitches, and of course, a deeper understanding of market behavior.
One final reason to go with data visualization?
Because not only is more than 90% of all human communication visible, but the brain also processes images roughly 60,000 times faster than it processes text.
Data Science and Profitability
You know that your business is certainly overspending — but what you can’t quite figure out is where it’s happening.
Data science will help you to learn where you’re overbuying when it comes to company inventory by comparing your stock to customer demand. It can also analyze your current marketing campaigns on a much deeper level so that you’ll be able to better understand whether or not your campaigns are performing effectively.
This helps you to outperform your competitors while keeping your operating costs down.
You’ll also be able to pinpoint exactly what isn’t working about your current business model due to improved customer journey mapping.
For example, Netflix is able to save about $1 billion each year because data mining tools found that customers were leaving the site because they didn’t know what to watch.
The “recommended for you” tool on Netflix.
Predictive Business Analytics and Sales
Wouldn’t it be wonderful if you could know when certain items were the most likely to sell when your customers were the most likely to buy specific products, or even how much they will probably spend the next time they make a purchase?
Thanks to data science and predictive analytics, you can.
Predictive analytics is the process of analyzing, refining, and studying past customer browsing and buying behavior, allowing you to better “predict” what and when customers will do business with you in the future.
You can also use this data to determine the ways in which your customers prefer to be communicated with. Are they more likely to respond to a physical mailing, an email, SMS text marketing, or simply a message or ad on social media?
In many cases, data science can even tell you the day of the week and the time of the day when your customers are the most likely to buy.
The better you know your customers, the higher sales — and customer satisfaction — levels you’ll see.
Not only does this completely revolutionize the way in which you approach clients and leads, but it also allows for the opportunity of market segmentation — a great way to streamline your new marketing process.
Many of your customers will have similar buying patterns based on their demographics. Segment your market to provide each of these segments with an ad that speaks to their needs, reminds them that it’s time for a refill, or arrives when they’re the most likely to buy.
Remember: successful marketing isn’t a “one-size-fits-all” approach. Data science allows you to get specific when it comes to marketing.
Big Data Analytics in the Hiring Process
You know that so much of your company’s success depends on the people you hire.
However, it’s certainly no secret that all the work involved in the hiring process itself can eat into your profits and even impact employee morale.
Data mining your applicants can make the process much easier — and much faster.
Data science can help you to connect with applicants who have the exact skillsets you’re looking for. These tools can quickly scan through resumes and even make suggestions about which applicants would be the best fit for a specific position you have open.
Data analytical tools can even help you to learn where you should be posting your job applications, which versions of your “wanted” ads are the most effective, and even help you to better diversify your workplace.
Product Development and Data Science
You know that, in order to keep your customers’ interest, you have to keep creating new products/services that appeal to them — and most importantly, that solve their current problems.
These products must also be more practical, more affordable, or simply easier to use than those offered by your competitors.
Big data can help you with product development just as much as it can assist with customer analysis.
Data science can analyze current trends in buying behavior, scan social media and online forums to determine what your market needs, and even point out ways you can improve your current products.
Additionally, data science allows for more refined product testing and even allows you to access feedback and insights from users themselves.
This way, you’re no longer creating products that you “hope” will appeal to your customers.
Instead, you’re making products or offering new services that you know they’ll love.
The Rise of Dynamic Pricing
Let’s face it: competitive pricing can be one of the trickiest parts about selling.
You want to set a price that allows you to compete and makes customers more likely to buy from your company as opposed to your competitors. You also want to set a price that’s consistent with current market value, but also one that allows you to make a profit.
Without the help of big data, finding the “sweet spot” of pricing can be a costly game of trial and error.
Enter the rise of dynamic pricing, one of the biggest benefits of data science.
Essentially, dynamic pricing means that the exact costs of your products/services shift continually, as a result of current market supply and demand. It also allows you to increase or decrease your pricing based on the user themselves.
For example, if your data has taught you that people accessing your website on a laptop will spend more money than those who access it on a desktop computer, you can adjust your pricing so that laptop users see higher prices.
This is the perfect way to give your customers the fairest possible prices while also ensuring you’re able to remain profitable.
Data science tools continuously analyze the current market value and the consumer demand of what you have for sale, and can even change your prices automatically for you to adjust to that.
Upcoming Trends in Data Science
So, what does data science have in store for the future?
In 2020 and beyond, you can expect data science to have an influence on:
- Enterprise security
- Government data collection/sharing
- Automated data science
- Augmented analytics
- Conversational Analytics
And much more.
Want to make sure you’re ahead of these trends before the new year begins?
See How Data Science Transforms Your Business
We hope that this post has convinced you of the power of data science now and in the future.
The reality is that you simply can’t compete within your market without the kind of insight and analytics that big data provides.
Are you ready to see how data science allows your business to operate more efficiently, refines your marketing strategy, and most of all, increases your revenue while lowering your production costs?
If so, then we’re ready to work with you.
Whether you need assistance with data visualization and reporting, data products to improve user experience and product development, or any of our other services, reach out to us today.
We can’t wait to help you not just meet but outright exceed, your goals for next year.