Most business leaders will tell you that one of the essential ingredients to developing a successful company is accurate information. If a company has a good premise, excellent employees who are motivated and incentivized properly, and accurate information, the likelihood of success is improved immensely. In today’s digital world, analytics is a tool necessary for success. Analytics gives the business the who: who is visiting the site; what: what they are doing on your website; where: what company or origin the visitor is of, and most importantly; why: why are these visitors interested in your company and how will they help you achieve success.
Analytics play a major part in growing any type of business. First, it is crucial to define what exactly analytics is: Analytics help people make smart, fact-based decisions based on different patterns that appear in data. Analytics help a company or individual determine who to target, how to manage risk, as well as help to make reasonable predictions about the future.
The analytics of a company’s website data gives great insight into what the customers want, what they will buy or use, and what they do not prefer. It is logical to say that the past cannot predict the future, it can only prepare us for what may come. In some ways, we are fortunate for this, as we hope to not repeat our past mistakes. Yet, using the analytics from the past can help to somewhat determine what is necessary for success in the future. Analytics give insight into new aspects of the market that would otherwise be extremely difficult to detect and comprehend.
Through using data analytics, businesses can better understand their customer’s needs and wants through their use of specific keywords, shortcuts and which pages they choose to enter. Based on the amount of time and depth each user spends on different pages, businesses can determine which pages are attractive and engaging to the customer, and which are dissuading the customer. By understanding the keywords people use, the pages they navigate and the certain links they click on, companies can better understand their customers and how to target and customize things to their taste.
Jeanne Harris, an Accenture consultant and author of the book “Analytics at Work: Smarter Decisions, Better Results,” noted that only 40% of organizations rely on their gut instincts, instead of analytics. However, if companies depended on the analytics of their websites, they would be able to better attract their customers using more efficient tactics.
Managing risk factors in businesses is crucial to the success of the company. Fortunately, analytics help a business determine what will be prosperous in the future, and what will not. Risky situations are often created when a company takes a chance without certain facts to back it up, and sometimes these situations result in disaster. Yet, with analytics as a determinant in what occurs, the risk factor lowers significantly.