Every business or company requires different strategies for them to function a lot better. One of the best strategies to try out these days is the use of analytics, by mining and studying data to use for further purposes. Now, there are different types of data analytics that businesses are using, and using among all of them is a difficult task. But worry not, we will guide you and explain each of the types of analytics to show what’s best to pick.
With the use of KPIs, descriptive-analytic targets deep accumulated data to reveal how the business or company works at the moment. As the name itself, the results are very easy to grasp, and anyone who has business knowledge can translate the results and use it as an advantage. Most descriptive analytics display real-time data that is very helpful when formulating marketing strategies, and determining what products or services to put out next.
Descriptive analytics is still needed to be interpreted as it is only made up of numbers and nothing more than that. That said, establishing a correlation can’t come up in an instant, and it would take time to interpret descriptive analytics. Small businesses and companies that are trying to move up are mostly the ones who use this kind of analytics. It’s inexpensive but it is a great investment that would truly be helpful for many years to come.
Using predictive analytics is a great investment as well, however, it is arguably more expensive than the descriptive one we talked about. Predictive analytics is more like one step further than anything else, and software and actual people do the analysis using many data from past and present, even those that are real-time. Getting this type of analytics is important for businesses that are thinking about the future, those that are investing in the long run.
Lastly, we have prescriptive analytics. This is mostly taken by businesses that are facing circumstances that are hard to make decisions through. That said, they resort to forming their decision through data. Think of it this way, descriptive is for the past, predictive is for the future, and prescriptive is for present problems that require immediate solutions. There are certain occasions where you should go for two or even all these three analytic types, but be careful as the expenses can easily skyrocket despite the effects that can be justified. Nevertheless, data analytics is heaven-sent for businesses, and with our society slowly revolving around digital platforms, it is something that you should consider.