Data is essential in today’s constantly changing business environment. Nearly every business, regardless of size, seeks professionals who can analyze raw data to gain valuable insights. So this blog gives some applications of business analytics and example of business analytics.
Are you wondering, Why data analytics is so important for businesses around the world? It’s mainly because of the many benefits it provides. The field of business analytics has revolutionized almost every industry, from manufacturing and marketing to financial management and human resource management.
This guide will help you gain a better understanding of how data analytics is used by businesses. We have created a blog that contains real-life examples. Before we move on to the different applications of business analytics in various fields, Let’s take a look at the steps and see what exactly business analytics is.
What is Business Analytics?
Business analytics can be a way to transform business data into insight. These data are collected from different sources and processed by experts using different methods to draw meaningful conclusions. High-tech software and tools are used by businesses today to facilitate this process.
You are interested in learning more about all things business analytics. This covers its benefits, components, as well as other aspects. Read our blog.
Also read: Top 10 Marketing Analytics Tools
8 Business Analytics Applications and Uses
This will give you a basic understanding of business analytics. Let’s take a look at the use of business analytics applications in various fields using real examples.
1. Business Analytics In Retail
When it comes to shopping online or creating a memorable in-store experience, How do experts use analytics to their advantage? Does it only allow you to use customer information to create relevant ads for customers? It isn’t. It is not uncommon to target customers with data to increase sales. Businesses are now taking this step further.
Zara: Adding the “Fast” in Fast Fashion
Zara doesn’t have a marketing budget or a fancy strategy. It is still one of the most prominent fast fashion retail brands in the world. How has Zara managed to be a leader in fast fashion retail? It is all about making sense of the information available. Zara can design, create, and ship all garments to customers in two weeks, whereas other brands may take at least 2-3 weeks to sketch new designs.
Zara uses Instagram and surveys to collect data for big data analytics. To understand the fashion preferences of their customers in each market, all this data is stored in the central nervous system. It is then compiled in the data center. Analysts work 24 hours a day to process data and drive new design releases. Zara is able to produce fashion that quickly becomes a trend by knowing its customers from the inside.
2. Business Analytics in Bank
Customers used to hate visiting banks because of the long wait times, time-consuming processes, and poor customer service. With analytics, some banks have enhanced their services to improve the experience.
Bank of America A Virtual step to serve its customers
Bank of America discovered that customers frequently visit the bank to review their transactions and receive information about future payments. This bank created a virtual assistant to assist customers in such activities. It allows customers to view their transaction history and details about pending bills. It uses data to quickly answer customers’ questions and save them time.
3. Business Analytics In Food Industry
Restaurants are having a hard time keeping customers due to the rapid rise in online delivery and the availability of many options. Some fast-food restaurants have managed to improve the customer experience online without negatively impacting sales.
McDonald’s: From mass promotion to Mass-personalization
McDonald’s has moved from regular menus to digital displays, where they are in complete control over what, when, and how they present to customers. Based on business analysis, the information on these screens about food and beverages is determined. The fast-food company determines which meals are most relevant and timely to customers. It also personalizes the content on the screen to each individual or based on what’s popular. McDonald’s has been able to maintain its market position thanks to this data-driven menu and personalized offerings.
4. Business Analytics In Transportation
When it comes to using data in transportation It is more than just about analyzing traffic patterns and finding the fastest routes. Transport services now use data to improve their services.
Uber Uses Data to Identify Lookalike Trips
Uber’s algorithms allow it to find rides that begin near the same pickup point, end close or occur at the same time as another ride. Uber can use this data to offer a similar ride for a lower price, while still offering a great experience. Uber’s Pool feature is here to help. Uber’s car-pooling service allows it to serve multiple people at once, keep its drivers occupied, and ultimately reduce its carbon footprint.
5. Business Analytics in Human Resource Management
Datafication is the most important trend in HRM: Using the power of data to transform HR processes. Technological advances have made it possible to analyze and access raw data in ways that were not possible a few years ago.
Nissan Identifies Talent Using Its USP
Nissan is a well-known name in motorsport. Nissan chose racing to recruit its new talent. Nissan decided to use racing video games as a recruiting tool. The GT Academy is an annual competition that pits the top gaming racers each year. This partnership was made possible by the motorsport company and Sony. This recruitment channel aims to identify the best racers and turn them into real-life racing drivers. Each year, thousands of hopeful racers participate in the contest. These past winners are still racing, which is a testament to how useful this channel has been for Nissan’s recruitment efforts.
6. Business Analytics in Entertainment
Entertainment businesses are finding innovative ways to reach their audience and build a larger customer base, as internet usage is higher than ever. Showbiz is willing to do everything, from creating original platform platforms to choosing movies and shows that appeal to a wider audience.
Netflix Uses Data to Increase Watch time
Netflix has over 148 million global streaming subscribers as of 2018. Netflix must find ways to increase the average time a user spends on the platform in order to stay ahead of Amazon Prime and its competitors. Netflix knows that if a user watches 15 hours per month of content, 75% fewer people will cancel. Netflix uses data to enable post-play, which automatically plays the next episode of a TV series unless the user chooses not to. This automatically suggested episode not only encourages users to spend more time but also helps Netflix learn about audience preferences.
7. Business Analytics in E-commerce
Do you remember ever talking about a product? What if you are recommending the same app to someone with whom you are not in contact? Although it sounds a little strange, this is how eCommerce giants use behavioral and predictive analytics to understand customers.
Amazon Uses Target Marketing to Increase Customer Satisfaction
Amazon tracks your past purchases, what you have in your online shopping cart, on your wishlist, product ratings, and reviews, as well as your search history. You might also find similar books that have been purchased by others when you add a book to your online shopping cart. Amazon makes use of the power and influence of suggestions to make it easy for you to purchase on impulse. This will increase Amazon’s sales and improve your shopping experience. You will always get more than you expect.
8. Business Analytics in Education
Recent developments in data analytics have seen universities use multiple data points to update and gather student data profiles. This includes demographics, financial information, academic performance, and other data.
The University of Alabama uses predictive analytics to reduce dropout rates
This university used analytics to determine that students who requested copies of transcripts were at risk of being expelled. This data allows administrators to recognize students who have made such requests and provide them with better academic and campus resources so that they can stay.
These are the top 8 business analytics applications in different industries. We hope that you now have a better understanding of how this field transforms industries around the world. Business analytics will continue to evolve faster than ever and offer opportunities that are not available today.