How Data Analytics Help Businesses: Real Examples & Techs

February 16, 2024

Table of Contents

Today, data is the right arm of any business. It’s everywhere, but understanding it is the true goldmine. To explore hidden insights behind data and leverage their value for decision-making, you need to hone data analytics skills.

Wondering how data analytics help businesses achieve real success? This article is where you can find the answer.

Through this guide, you’ll discover the basics of data analytics, coupled with its real-world real-life examples where data analytics paved the way for success.

But we’re not just stopping at success stories; we’re delving into the tech side of things too. How do businesses incorporate data analytics during the app development process? We, Designveloper (DSV), will reveal its mystery based on our experience and expertise.

So, are you ready to discover the secrets of data? Read on.

What is Data Analytics?

Before further discovering how data analytics help business success, let’s take a quick view of what it is.

In its simplest form, data analytics is the process of examining raw data to derive insights about that information. Then, use those insights to recommend action or to guide decision-making.

Imagine you’re a business owner with a pile of customer data. On its own, this data might not tell you much. But apply data analytics, and you can start to see patterns. You might discover which products are most popular, or at what times of day your customers are most likely to make a purchase. These insights can help you make informed decisions about everything from marketing strategies to product development.

For more details on this realm, read our article: “What is Data Analytics? Types, Steps & Tools for Beginners”

FURTHER READING:

1. 10 Best Data Analytics Software in 2024: A Complete Guide

2. What Does a Data Analyst Do? Duties, Tools & Impacts

3. Business Data Analytics: 5 Essentials

5 Benefits of Data Analytics for Businesses

In today’s digital age, the global data analytics market is experiencing significant growth. As of 2023, the market size was valued at USD 61.44 billion, and it’s expected to exceed USD 581.34 billion by 2033. This rapid expansion is a testament to the increasing recognition of the power of data analytics in the business world.

But what exactly does this mean for businesses? Dive deeper with us and uncover the tangible benefits data analytics hold for businesses of all sizes and industries.

Better Data-Driven Decisions

Highly data-driven organizations are three times more likely to report significant improvements in their decision-making processes.

Here’s how data analytics help businesses in making informed decisions:

Make strategic choices based on real-time insights, propelling your business forward with confidence.
Anticipate challenges and opportunities before they arise, giving you a proactive edge in the market and mitigating unexpected risks.
Gain valuable insights into the effectiveness of your initiatives (e.g., campaigns and investments), allowing you to refine your approach for optimal results.

So with strong data analytics skills, you can make confident decisions based on real-time data and actionable insights. This approach replaces reliance on gut feelings, ensuring that every business move is backed by solid evidence.

Enhanced Customer Understanding

According to EY, the top driver for businesses to implement data analytics was to understand customers better (73%).

Why? By analyzing customer data, businesses can uncover patterns and trends in customer behavior, preferences, and needs. This valuable insight can help your business:

Personalize products or services to meet customer needs;
Develop effective marketing campaigns that resonate deeply with your target customers;
Enhance customer service by addressing customer concerns proactively and efficiently.

Optimized Operations

Data analytics isn’t just about customers; it’s about streamlining your entire business. According to the Harvard Business Review (HBR) study, 81% improved their operational efficiency when using data analytics powered by AI.

As such, by analyzing operational data (production, logistics, inventory, etc.), you can:

Pinpoint and eliminate areas slowing down your processes and costing you money, thereby streamlining workflows.
Allocate resources based on real-time needs, ensuring maximum efficiency.
Develop proactive maintenance based on data insights to save time, money, and disruptions.

All these activities ultimately contribute to improving overall operational efficiency across your business.

Increased Profitability

This figure might not surprise you: Companies with strong data analytics capabilities achieved 16% higher profitability than those who don’t. Accordingly, data analytics isn’t just about saving financial resources, but also about boosting your bottom line.

Here’s how data analytics help businesses to increase revenues and profitability:

Uncover hidden opportunities to expand your offerings and reach new customer segments.
Analyze customer behaviors and competitors to set prices that maximize profits while remaining competitive.
Identify areas for cost reduction and streamline operations, leading to improved bottom-line performance.

Improved Competitive Advantage

According to the IBM survey, 62% of retailers reported that data analytics gave them a competitive advantage in the market.

With all these mentioned benefits, no wonder how data analytics help businesses stand out.

Particularly, by leveraging data-driven insights, you can:

Identify new market opportunities, emerging trends, and customer segments your competitors might miss.
Stay one step ahead by anticipating future trends and adjusting your strategies accordingly.
Understand your competitors’ strengths and weaknesses, allowing you to differentiate your offerings and attract customers.

All these activities help your business ultimately stay ahead of the competition.

5 Real-world Applications of Data Analytics in Businesses

The benefits of data analytics sound impressive, but seeing is believing. So, let’s turn to the real world and explore how data analytics help businesses across industries achieve remarkable results.

Fitbit

Fitbit is a pioneer in the wearable technology landscape, revolutionizing how we manage our health and fitness. It offers devices that track various health metrics, including steps taken, heart rate fluctuations, sleep patterns, and exercise routines.

Fitbit applies data analytics to understand user behavior and refine its products. By collecting data on user interactions with their devices, Fitbit can fulfill users’ unique needs and preferences. For instance, if data analysis reveals that a significant percentage of users engage in outdoor running, Fitbit can improve GPS tracking accuracy.

Fitbit’s strategic utilization of product analytics has propelled them to the forefront of the fitness tracking industry. They use an iterative product development process, continuously enhancing existing products and creating new ones based on the data collected. This approach has led to personalized user experiences and continuous user engagement.

Bank of America

Bank of America is a leading financial institution offering a wide range of banking and financial services.

The bank applies data analytics to improve its operations and customer service. They use big data analytics for precise marketing, customer segmentation, and product affinity prediction. This helps them understand customer behavior and improve their financial performance.

Their use of data analytics has led to significant business success. They have been able to identify quality improvement opportunities, negotiate more favorable contracts with payers, and enhance customer-physician discussions and decisions. This has improved customer service and a competitive edge in the banking industry.

Domino’s

Domino is a leading pizza delivery chain, offering a variety of pizzas and other food items. They have been a consistent digital innovator, with strong e-commerce and m-commerce platforms that enable customers to easily purchase pizzas.

Domino applies data analytics to understand customer behavior and improve business performance. They use Google Analytics Premium, Google Tag Manager, and Google BigQuery to integrate digital data sources and CRM data. This allows them to gain a holistic view of customer behavior and make cross-channel marketing performance analysis easy and efficient.

Domino’s use of data analytics has led to significant business success. They have seen a 6% increase in monthly revenue and saved 80% year over year in ad serving and operations costs. Their ability to act fast and adapt to changing customer needs has been a key factor in their success.

Amazon

Amazon is a leading eCommerce company that provides a vast array of products and services. It has revolutionized the online shopping experience with its customer-centric approach.

Amazon applies data analytics to enhance its performance, personalize customer experiences, and drive revenue.

By using buyer data, Amazon has developed a personalized recommendation system. Particularly, based on previous searches for a specific item, its recommendation engine can better suggest other items that might interest customers. Accordingly, Amazon can speed up convincing customers to buy the products. Unsurprisingly, this system is estimated to contribute 35% of Amazon’s annual sales.

Amazon’s data strategy has been a key factor in its success. Its data analytics have assisted the brand in ascending to the top of the eCommerce heap. It has innovated by introducing new services (e.g., single-click order), constantly changing the price of its products, and developing customer-centric strategies. This approach has led to excellent conversion rates and a significant increase in overall revenue.

Uber

Uber is a global ride-hailing company that offers services like peer-to-peer ridesharing, ride-service hailing, and food delivery. It operates in around 900 cities across 69 countries.

Uber applies data analytics to make data-driven decisions at every level. They use predictive analytics to forecast rider demand during high-traffic events and to identify and address bottlenecks in their driver-partner sign-up process. Uber’s machine learning model provides a framework for end-to-end predictive analytics of Uber data prediction sources.

Uber’s use of data analytics has led to safer and more reliable transportation across their global markets. Their big data platform ensures data reliability, scalability, and ease of use, and they are now focusing on increasing their platform’s speed and efficiency. This has resulted in improved performance and effectiveness of their data collection processes.

The Role of Technology in Data Analytics from Designveloper’s Insights

The role of tech in data analytics from DSV insights

We’ve explored the wonders of data analytics. But facing a vast amount of data, how can we ensure a smooth transition from raw data to meaningful and actionable insights? That’s where techs come into play.

As such, technology plays a crucial role in effectively leveraging data analytics within apps and software, fueling data-driven decisions and unlocking powerful outcomes.

Without techs, app owners find it tricky to gather, process, and interpret vast amounts of data seamlessly and accurately to make informed decisions and strategies.

DSV, with extensive expertise in app development, recognizes the importance of techs in implementing data analytics into our products. Our approach to app development, therefore, is not just about creating visually appealing and functional apps. But it’s also about designing solutions that can capture and analyze data to provide valuable insights for our clients.

Coupled with advanced techs and strong data analytics capabilities, our deliverables can help clients collect relevant data. These data can then be analyzed to understand user behavior, optimize app performance, and ultimately, drive business growth.

Case Study: Empowering Lumin PDF with Data-Driven Growth

To see how techs play an important role in data analytics, let’s take a quick look at our Lumin PDF project.

Lumin PDF is a cloud-based PDF editing platform. To support our client in data analytics within this app, DSV employed a range of techniques and technologies, including:

Cloud Architecture

We utilize robust cloud platforms like AWS, Azure, or Google Cloud to build our apps. These platforms provide the scalability, availability, and resource management needed to handle large volumes of data, ensuring smooth performance and seamless data analysis.

Flexible Integrations

Data is often scattered across different systems and platforms. We prioritize flexible integrations, allowing seamless connections with various tools and applications used by our clients. This enables centralized data collection and analysis, providing a holistic view of their business operations.

Performance Management

Our apps are built with performance management in mind, guaranteeing a seamless and uninterrupted user experience even when dealing with large datasets. This allows clients to explore and analyze data without any lag, enabling efficient decision-making.

Data Analytics and Reporting

Data is most valuable when it’s easily understood and acted upon. That’s why we integrate data analytics and reporting tools into our apps. These tools provide clear and actionable insights, helping clients monitor app performance, track key metrics, and make data-driven decisions that drive business growth.

Through these data-driven insights, Lumin PDF was able to significantly improve its app performance, user engagement, and overall business growth.

By understanding how data analytics help businesses, DSV can tailor our services to meet the specific needs of our clients, helping them leverage the power of data to drive their business forward.

Conclusion

This guide has shown you how data analytics help businesses of all sizes unlock powerful insights, make smarter decisions, and achieve real success. You’ve seen real-world examples and even peeked behind the curtain of technology’s role in making it all happen.

But the journey doesn’t end here. Are you ready to turn your data into a goldmine? At Designveloper, we’re experts in building software and apps that harness the power of data analytics. Let us help you navigate the exciting world of data-driven decisions and unlock the true potential of your business.