Successful businesses may rely on human intuition, but data analysis is an enormous, indispensable component of their success. By examining non-biased, raw data, they can make informed decisions that will benefit their company—and ensure their viability as time progresses.¹

But why is data analysis important? And what are the advantages of learning more about data analytics and data science on your academic and professional journey?

Let’s explore the benefits of data analytics—and why a career as a data analyst or data scientist may align with your aspirations.

What is Data Analysis?

Put simply, data analysis is the process of cleaning, interpreting, and converting information into actionable insights by detecting patterns, relationships, and gaps in everything from a customer’s online activity to a marketing campaign’s results.²

Before the digital age, businesses made decisions on perceived customer behavior and a product’s popularity. Now, however, companies across the board constantly gather qualitative data and quantitative data. There’s digital and physical approaches to data collection to provide valuable insight on how customers interact with a business.

A data analyst or data scientist—human, artificial intelligence, or a combination of both—transfers these raw data into business recommendations. It can go in a fresh direction with the data visualization tools available to employees or updating existing products.³

Data analysts and business analysts should work together to create actionable insights to improve an organization. When you have first-party data, business strategy development is more streamlined to create a holistic approach that accounts for customer’s needs and supports overarching business goals.

5 Benefits of Data Analytics

In our accelerated, tech-heavy era, businesses must employ and consistently upgrade their data analytics skills to maintain their competitive edge. Let’s uncover the benefits of data science in greater depth.

#1 Informed Decision Making

One of the most significant benefits of data analytics is that it takes speculation out of critical (and even minor) business decisions. Historical data provides valuable insight that enables businesses to assess where they presently stand, predict future outcomes, and pinpoint—and mitigate—risks.

#2. Operational Efficiency and Process Improvement

Enhanced productivity and efficiency enable businesses to keep pace with their competitors (if not outrun them) while also meeting the increasing customer demand for seamless and swift experiences. Data collection and data analytics can help a company uplevel their processes and improve their overall efficiency by identifying ways to:⁴

• Curb manual labor (and the expenses that arrive with it)
• Spot bottlenecks in production
• Streamline and strengthen workflows
• Maximize supply chain operations

#3. Customer Understanding and Personalization

Understanding a customer’s behavior—from what they buy to when they buy—is essential to boosting customer retention and a brand’s bottom line. Companies can cultivate stronger relationships with their patrons by anticipating the products and services they want and need through a combination of analyzing:⁵

• Behavioral data
• Demographic data
• Psychographic data
• Transactional data

We all know how refreshing and reassuring it feels when a company seems to “get” you (and a product or service pops into view at precisely the right moment). This is often thanks to strong data analytics and business intelligence.

#4. Marketing and Sales Optimization

It’s safe to say that no business exists that isn’t intent on bolstering their sales performance.

Data analytics and business intelligence can help substantially in this regard. In fact, companies that utilize data-driven marketing tactics have a five times higher ROI than businesses that don’t.⁶ Specifically, data analytics facilitates:

• Improved marketing messages that may resonate with new and existing customers
• A clearer comprehension of which keywords fuel traffic and lead to conversions
• Elevated content decisions based on a target audience’s preferences and engagement

Data analytics can also help companies track which products and services are performing well and predict sales trends—and leverage this qualitative data in their product management, development, and marketing strategies with the help of data visualization tools.

#5. Competitor Analysis and Market Research

Businesses must comprehensively understand their market’s landscape—and stay apprised of changes to adjust and revamp when necessary.⁷

Data analytics helps companies evaluate their competitors’ performance, price points, marketing methods, social media reach, and more. Business leaders can make informed decisions to ensure they’re taking the proper, proactive steps to remain at the top of their niche.

Additional Benefits of Data Analytics

Data analytics is an invaluable tool for businesses. In addition to the benefits outlined above, it may enhance:

• Financial performance and budgeting – Data analytics offers an evidence-based, holistic view of how a company is performing—and where there’s room for improvement. Payroll costs, revenues, and net income—can all be analyzed to craft a sustainable budget and maximize profits.⁸
• Fraud detection and security – Fraud data analytics (a subset of data analytics) assesses information to detect suspicious activity, anticipate risks, minimize vulnerability, and protect businesses and their customers.⁹

Last but certainly not least, data analytics can help businesses forecast trends and opportunities—and strategically plan how to position themselves in the future.

Start a Career in Data Analytics with Alliant International University 

Thanks to emerging, innovative technologies and increased investment in providing customers with personalized products, services, and experiences, data analytics will continue to grow as one of the more crucial factors in a company’s longevity and success.

Alliant International University can help you exploit this for your own success with several graduate programs in business, including a master’s in data analytics. Designed to help students develop and hone their analytical thinking and operational problem solving skills—and led by experts in the profession—the program provides students with the education and confidence they need to help them prosper.

Check out our programs today to be a part of tomorrow’s business solutions.

Sources:

1. Frankenfield, Jake. “Data Analytics: What It Is, How It’s Used, and 4 Basic Techniques.” Investopedia, August 9, 2023. https://www.investopedia.com/terms/d/data-analytics.asp. Accessed February 13, 2024.
2. Stevens, Emily. “What Is Data Analytics? A Complete Guide for Beginners.” CareerFoundry, November 17, 2023. https://careerfoundry.com/en/blog/data-analytics/what-is-data-analytics/#what-is-data-analytics. Accessed February 13, 2024.
3. How is AI used in data analysis? examples and applied …, August 3, 2023. https://www.upwork.com/resources/ai-in-data-analysis. Accessed February 13, 2024.
4. “5 Key Data Analytics Benefits You Should Know About.” Emeritus Online Courses, February 28, 2023. https://emeritus.org/blog/data-analytics-data-analytics-benefits/. Accessed February 13, 2024.
5. FullStory. “How to Use Data to Improve Customer Experience.” FullStory, September 22, 2022. https://www.fullstory.com/blog/data-analytics-to-improve-customer-experience/. Accessed February 13, 2024. 
6. Hall, Jason. “Council Post: Incorporating Data and Analytics into Your Marketing Plan.” Forbes, July 27, 2022. https://www.forbes.com/sites/forbesagencycouncil/2022/07/26/incorporating-data-and-analytics-into-your-marketing-plan/?sh=3cd07f02654e. Accessed February 13, 2024. 
7. Lyons, Kelly. “What Is a Competitive Analysis & How to Do It (with Template).” Semrush Blog, December 14, 2023. https://www.semrush.com/blog/competitive-analysis/. Accessed February 13, 2024. 
8. “How Is Data Analytics Used in Finance: Comptia.” CompTIA.org. Accessed February 14, 2024. https://www.comptia.org/content/articles/how-is-data-analytics-used-in-finance. Accessed February 13, 2024. 
9. “Fraud Analytics: How to Use for Fraud Prevention.” SEON, January 29, 2024. https://seon.io/resources/guides/fraud-analytics/. Accessed February 13, 2024. 

The content of this page is only for informational purposes and is not intended, expressly or by implication, as a guarantee of employment or salary, which vary based on many factors including but not limited to education, credentials, and experience. Alliant International University explicitly makes no representations or guarantees about the accuracy of the information provided by any prospective employer or any other website. Salary information available on the internet may not reflect the typical experience of Alliant graduates. Alliant does not guarantee that any graduate will be placed with a particular employer or in any specific employment position.