5 Ways Top Brands Use Business Analytics You’d Never Guess

Business analytics has changed the way we interact with data. From production to analysis, the amount of data and the means of processing it has also changed. In fact, it is estimated that 90% of the world’s data was generated in the last two years!

This recent growth of data generation has also led to an increase in the use of business analytics. Large amounts of data are difficult to analyse and understand, but with business analytics, the use and analysis of data has become a lot more efficient. Today, most brands have adopted business analytics as a regular practice, and have seen significant results in return. Top brands like Netflix, Walmart, Amazon, and many more have optimised operations, saved costs, and delivered exceptional user experiences – all with the help of business analytics!

Here’s How Brands Use Business Analytics… The Results Are Unbelievable!

Business analytics is the advanced science of transforming raw data into actionable insights. It involves collecting data, followed by analysing and interpreting insights to form solutions. With the help of machine learning algorithms and data analysing tools, business analysts simplify complex data and curate fruitful strategies.

Following are the areas where business analysts continue to make a difference. Read on to find some true-story examples, you might find a pleasant surprise!

1. Application Of Business Analytics In Finance

Business analytics and finance have a long-standing relationship. With more data and user engagement with financial institutions, there’s a growing need for analysis in different sectors of finance. Here are some key areas of application of finance analytics:

• Credit risk assessment can be conducted using advanced techniques like machine learning, to assess the creditworthiness of businesses and individuals.
• Market risk analysis, for financial institutions to identify risks based on historical market data, and develop strategies to mitigate them.
• Portfolio optimisation and performance analysis, to optimise investment portfolio by considering factors like risk tolerance, diversification, return of investment, etc.
• Fraud detection, to identify unusual patterns transaction data using machine learning algorithms, and prevent fraudulent activities.
• Algorithmic trading, where systems can gauge market standing and execute trades at high speeds.
• Financial forecasting, to forecast future financial performances such as expenses, revenue, profits, etc., by analysing historical data and trends.

Success Story of Financial Analytics

Capital one is an established financial institution that has achieved great heights in the finance industry, with the help of business analytics. Some highlights include:

• Utilised many data points, including income, credit history, and spending patterns, to develop accurate credit scoring models and make more informed decisions.
• Analysed many volumes of transaction data and implemented robust fraud detection systems to protect both the bank and its customers from fraudulent activities.
• Increased operational efficiency by analysing process flows and streamlined operations while also identifying areas for improvement.

Want To Become A Business Analyst In The Next 2.5 Months?

2. Application Of Business Analytics In Marketing

In the transforming field of marketing, data-driven insights are the need of the hour. To keep up with the market trends and effectiveness, businesses are constantly looking to grow substantially with business analytics. Here are some key areas of applications of marketing analytics:

• Market research, to monitor market trends, identify emerging threats and opportunities, and identify areas for improvement.

• Customer segmentation, to categorise users in specific segments with similar preferences and characteristics, by tracking customer behaviour.

• Product and price optimisation, to develop products that resonate with the target market, and optimise strategies by analysing competitor product and pricing decisions.

• Digital marketing, to track website traffic, email marketing and social media campaigns, and search engine optimisation by measuring impact and identifying ways to increase engagement and conversions.

• Measuring campaign performance, to evaluate the effectiveness and return of investment and assess their profitability.

Also Read – 8 Surprising Ways Business Analytics Helps Marketing Professionals

Success Story of Marketing Analytics

Netflix, the global streaming giant, has leveraged business analytics and revolutionised the way its content is marketed and engaged with the audience. Some highlights include:

• Shares personalised recommendations to users by analysing user viewer history, genre preferences, ratings, etc., to keep the users engaged and drive more subscriptions.
• Conducts A/B testing on a regular basis, on various marketing elements such as email subject lines and trailer designs, to optimise market strategies and maximise its impact.
• Leverages real-time insights by monitoring user behaviour and adjusting its marketing strategies. For example, if a show is trending, they can create marketing campaigns to capitalise on the buzz.

3. Application Of Business Analytics In CRM

Customer relationship management (CRM) determines how the user’s engagement with the brand will be. To enhance the end-user experience, CRM majorly relies on business analytics by using data-driven insights to improve the overall business performance. Here are some key areas of applications of CRM analytics:

• Customer segmentation entails customer grouping based on similar user behaviour and preferences to identify specific user needs and cater to them.

• Customer churn prediction, which uses predictive analytics to identify customers at risk of churning, and implement retention strategies such as providing timely support and resolving issues before they escalate.

• Sales forecasting, by analysing historical data, market trends and patterns to predict future sales and allocate resources effectively.

• Customer sentiment analysis, by studying online reviews, understand customer behaviour, gauge user sentiment and resolve any issues to enhance the complete user experience.

• Customer journey mapping, to visually track the user’s journey, identify touchpoints, streamline processes, and opportunities for improvement.

Success Story of CRM Analytics

Starbucks cares about its customers as it does about its coffee. So much so that it has leveraged business analytics to enhance their end to end CRM strategy. Some highlights include:

• Created a personalised rewards program which analyses customer purchase history, preferences, and location data, to offer personalised rewards and promotions.
• Customer segmentation allows Starbucks tailor marketing campaigns and discounts to specific customer groups, segmented based on purchase frequency, preferred products, and demographic information.
• Implemented predictive analytics to forecast future customer behaviour, identify potential churn and practice targeted retention strategies to keep them engaged.

4. Application Of Business Analytics In Manufacturing

Modern manufacturing operations require more analytics solutions, aka business analytics. Manufacturers can optimise processes, improve product quality, and reduce costs by making data-driven decisions. Here are some key areas of applications of manufacturing analytics:

• Quality control, to identify quality issues by gathering real-time data from sensors and quality control systems.

• Supply chain optimisation, by tracking the movement of materials and products to identify inefficiencies and bottlenecks in the supply chain.

• Understanding demand, to optimise inventory levels and production schedules by forecasting demand well in advance.

• Product design and development, to optimise product designs for performance, manufacturing, user needs, and performance, all with the help of data.

• Production efficiency, to minimise costs and maximise outputs by optimising production schedules and energy consumption.

Also Read – 5 Applications of Business Analytics in Supply Chain Success

Success Story of Manufacturing Analytics

The widely popular General Electric (GE) Company works in several divisions including aerospace, healthcare, energy and finance. By analysing large volumes of data from sensors embedded in their equipment, GE enhanced its operations with business analytics. Some highlights include:

• Addressed potential issues before they escalate, and saved costs by minimising unplanned downtime.
• Extended the lifespan of their equipment and reduced the need for frequent replacements with proactive maintenance.
• Improved workforce safety by identifying safety hazards early on and taking all the preventive measures required.

5. Application Of Business Analytics In Human Resources

While human resources (HR) usually revolves around people, a good chunk of the industry revolves around operations. Business analytics has evolved the way HR functions operate. Here are some key areas of applications of human resource analytics:

• Talent acquisition, to find the best fit for the role by analysing candidate data and role requirements.

• Employee performance management, to improve employee performance by analysing performance data, and identifying employees with high potential and those underperforming.

• Employee retention, to enhance employee experience by identifying areas of improvement in terms of operation and overall experience.

• Benefits and compensation, by analysing benefit programs and industry standards to ensure competitive compensation and benefits.

• Learning and development, to identify training gaps, evaluate the impact of implemented training programs and employee performance.

Also Read – 4 Powerful Ways HR Analytics Is Changing Workforce Management

Success Story of Human Resources Analytics

Google is a name that needs no introduction. While it creates innovative products and services, it also focuses on creating innovative strategies for the people of Google. Their success lies in people analytics, where they leverage business analytics to enhance employee experience. Some highlights include:

• Optimised hiring processes by identifying key qualities and experiences that match with the role requirements.
• Improved performance management by analysing performance data, identifying employees with high potential and providing them opportunities of learning and growth.
• Predicted employee turnover and retained top talent by identifying employees at risk of leaving and taking proactive measures to address their concerns.

Why are Business Analysts Crucial to Brands

The applications of business analytics are widespread across different industries. They are equally ingrained in the specific areas under each industry too, making business analytics an integral part of brands and their processes. Consequently, there is a growing demand for business analysts to transform brands in the following ways:

1. Data-driven Decision Making

Brands can make more informed decisions by analysing historical data and current trends to enhance operational strategies, marketing campaigns, and product development. With the help of predictive analytics, business analysts can also identify potential risks and opportunities and strategise accordingly.

2. Improved Customer Understanding

Business analytics helps gather large volumes of user data, which can share insights about user behaviour, preferences, and needs. Such an enhanced understanding of users sets the foundation for more personalised experiences that enhance user satisfaction and overall experience with the brand.

3. Complete Digital Transformation

There’s an increased focus on digital presence, with brands aiming to leave an indelible impression digitally. Several metrics, data, and insights can be extracted from the website, social media, email marketing, and more, to understand the impact of digital efforts.

4. Better Competitive Advantage

Data-driven insights and strategies analyse product opportunities, market needs to fuel innovation and create new products and services directly catering user needs. By immediately adapting to evolving market conditions, brands can always stay ahead of the competition.

Also Read – Want a job in Business Analytics? Read top 6 job profiles & salaries

How to Become a Business Analyst with IMS Proschool

Now that you know the scope of business analytics and are looking to pursue business analytics, here’s a quick roadmap to study from the best out there. Ranked among India’s top 10 analytics institutes, IMS Proschool offers the ultimate business analytics program and prepares you for all that lies ahead of you. Here are some highlights of the program:

• Focuses on building both soft and technical skills, one of the most important ones being problem-solving in just 2.5 months.
• The program covers advanced business analytics tools high in demand, including Excel, SQL, Tableau, Power BI & Python.
• Don’t be overwhelmed by the previous highlight. The course is beginner-friendly, whether you’re a coder or a non-coder.
• Learn from 15+ case studies and projects to know business analytics in and out.
• Upgrade your business analytics course to domain-specific analytics, as per your choice.
• Explore among 800+ job opportunities in more than 30 companies, and find the best suitable role for you.

Frequently Asked Questions

1. What are the types of applications of business analytics?

Business analytics has a wide range of applications across industries. It is used for risk management and fraud detection in finance, performance and management of marketing campaigns in marketing, customer experience in CRM, talent acquisition and retention in human resources, supply chain optimisation in manufacturing, and many more.

2. What are the four types of business analytics?

Business analytics is broadly divided in these four areas:

• Descriptive analytics, which extracts insights from historical data.
• Diagnostic analytics, which identifies the root causes of past events.
• Predictive analytics, which estimates what future trends to watch out for.
• Prescriptive analytics, which recommends specific actions to optimise all future outcomes.

3. Why do companies use business analytics?

Business analytics is widely used by many big brands and businesses, to establish their digital transformation, improve customer experience, and most importantly, to make more informed decisions driven by data.

4. What is the end goal of business analytics?

While business analytics is a long process with several milestones along the way, the end goal is to achieve business aims and objectives in the smoothest, most efficient way possible. It also aims to optimise processes, save costs, and maximise profits for organisations.

Conclusion

All brands, small or big, emerging or established, leverage business analytics to optimise their processes. It is the modern world’s efficient solution to achieve business objectives with data-driven insights and a proper direction to head out to. With innovation , the field drives solutions for better businesses and user experiences – the best of both worlds!

Are you ready to dive head-first into the advanced world of business analytics?