Data Analytics is a science of collection, analyzing, and deriving actionable insights from data.
Any type of information can be subject to data analytics to derive insights that can be useful for understanding patterns and trends that would otherwise be lost in the mass of information.
Data analytics helps you uncover patterns and trends that are useful to optimize and improve your efficiency, which leads to improvement in performance.
Analytics in eCommerce will help you make better and smarter decisions, analyze customer trends and patterns which leads to better service and opportunities for new products.
Types of Data Analytics
- Descriptive Analytics
- Predictive Analytics
- Prescriptive Analytics
- Diagnostic Analytics
Descriptive Analytics – Descriptive analytics answers the question of “What Happened?” or “What’s happening?”. It’s an understanding of historical data, for example – year on year increases in sales or orders over the period of time.
Predictive Analytics – Predictive Analytics answers the questions of “What’s about to or What’s going to happen in the near future?” It takes in historical and current data and runs it through a predictive model also known as a machine learning model to make predictions about the near future or the unknown.
Prescriptive Analytics – Prescriptive analytics answers the questions of “What should be done given a particular situation?” predictive analytics gives an indication of what may happen, prescriptive analytics shows the way to make it happen.
Diagnostic Analytics – Diagnostic Analytics answers the question of “Why did x happen?”Diagnostic analytics helps you to uncover the reasoning behind certain results.
Analytics gives you the power to understand or to look at your progress, how your business is doing, how far you’ve come, and predict how your business will do. This is incredibly important because when you have something to achieve, it tells you when you will hit the target and are you on course to achieve it.
You can’t really make informed decisions without analytics, it’s like blindly throwing ideas and seeing what works, which might work but with analytics, the probability will be higher.
The huge benefit you get from using analytics is you understand your strengths and weaknesses, identify which products are doing well and which aren’t, improve your service and also find possible opportunities for new products or services.
To sum up in few points on how analytics helps eCommerce store
- Improve Customer Experience
- Make Informed Decision
- Improve Efficiency
- Better Product/Inventory Management
- Be ready for uncertainty
- Increase revenue, sales, and customer retention
- Identify new opportunities
vizB presently comes with descriptive analytics and predictive analytics, we will provide prescriptive and diagnostics analytics in the future.