Big data plays an eminent role in advanced analytics, most people closely link the two terms together but what are the main plus points of incorporating this specialised analytics into businesses? According to a study by The Financial Executives Research Foundation there are four key factors owing to which a company undertakes advanced analytics – Identifying root causes, gaining deeper insights, identifying and managing risk and assessing market competition.
Advantages of advanced analytics
Identifying root causes – With the assistance of advanced analytics, an organisation can detect the exact problem for an issue with ease. For instance, if the number of reports regarding damaged products increase then the firm can make use of analytics to find out the root cause of this i.e. is it a packaging issue or something else.
Gaining deeper insights – Advanced analytics also proves beneficial to predict numerous factors that may affect business such as discount prices during a particular festival, marketing campaigns, sales with respect to the market conditions, etc. It can also be used to gain a deeper understanding of certain key aspects including the market, customer choices, procurement trends, quality, etc.
Identifying and managing risk – Companies can make use of their past and current data to detect quality customers that always or most of the times pay their invoices on time. This enables the firm to get a better understanding of its credit standing and undertake business decisions more effectively.
Assessing market competition – Firms must realise that even if they are not implementing advanced analytics in their businesses, their competitors are and this is what takes them ahead in the long run. Assessing market competition helps organisations to find out which investments will be advantageous for the firm in terms of customer retention and growth.
Big data analytics
There are many companies that have deeply integrated advanced analytics into their business strategies. The well-known carbonated soft drink – Coca Cola from the Coca-Cola Company has made quite a strong impression across the globe with its red and white colours. How did the Coca Cola Company achieve such a big milestone? The Association for Data Driven Marketing and Advertising (ADMA) has revealed that in 2015, the company gave a boost to its data strategy and incorporated a digital–led loyalty programme through which the firm got a hold of ‘first party’ data.
This ever expanding database helped Coca-Cola to connect with their consumers more effectively and efficiently. This resulted in the giant coke company to generate demand for its existing line of products as well as for its new products. This move benefitted the organisation not just in sales figures but also in terms of cutting down on overtime costs and increased revenue. This is how the global cola brand utilised big data analytics to retain its customers.
Advanced analytics or big data analytics has assisted many leading industry players such as the Coca Cola Company to stay on top of their game and continue to make better and informed business decisions.