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In addition, many businesses - particularly in retail - struggle to optimize their inventory levels. If a demand forecast shows that a specific vendor won’t be able to handle the volume required for the holiday season, an enterprise could supplement or replace this vendor to avoid production delays. Gathering and analyzing data about the supply chain can show where production delays or bottlenecks originate and help predict where future problems may arise. Organizations can improve operational efficiency through data analytics. After collecting sales data on the changed products, enterprises can use data analytics tools to determine the success of the changes and visualize the results to help decision-makers choose whether to roll the changes out across the business. Changes to product offerings can be A/B tested to validate the hypotheses produced by such models. Predictive analytics can suggest what could happen in response to changes to the business, and prescriptive analytics can indicate how the business should react to these changes.įor instance, a business can model changes to pricing or product offerings to determine how those changes would affect customer demand. Inform business decision-makingĮnterprises can use data analytics to guide business decisions and minimize financial losses. For example, a business could run a predictive model on e-commerce transaction data to determine products to recommend at checkout to increase sales. Organizations can run behavioral analytics models on customer data to optimize the customer experience further. The company could analyze its sales data together with data from its social media pages and then create targeted social media campaigns to promote their e-commerce sales for product categories that the customers are already interested in. Take a retail clothing business that has an online and physical presence. By using data analytics to create comprehensive customer profiles from this data, businesses can gain insights into customer behavior to provide a more personalized experience. Personalize the customer experienceīusinesses collect customer data from many different channels, including physical retail, e-commerce, and social media. Let’s take a look at five of the benefits of using data analytics. Data analytics can help an organization with everything from personalizing a marketing pitch for an individual customer to identifying and mitigating risks to its business. The rich variety of data that enterprises generate contains valuable insights, and data analytics is the way to unlock them. 5 benefits of data analytics for your business