One of the biggest trends in business today is the big data and the use of real-time data analytics. The real-time analysis of multiple kinds of data allows an organization to gain precious insight about their customers and their employees at any given time, which can lead to various opportunities to maximize revenue, improve customer experience, and take care of personnel. Data analysis also helps protect a business from losses, whether in a financial, reputational, or technological aspect.
However, it must be said that this insight comes with a cost. The infrastructure that enables a business to leverage real-time data analytics can be expensive, even in this age of more affordable technology. Is the insight worth the asking price? We list down some of the biggest advantages to real-time data analytics below to help you make a decision.
Any pain points or major errors in the workflow are found and mitigated quickly
Real-time data analytics help provide much-needed insight almost instantly. This allows companies to quickly find problems within their workflow and address them as soon as possible. This can be a great help in preventing almost any issue from becoming a cause of downtime or even a complete breakdown in operations. As such, the company’s revenue-earning capability is preserved, as well as its reputation among its customers.
New strategies being utilized by competitors are noticed immediately and taken into account
Real-time data analytics can also help businesses stay ahead of the pack by receiving notifications about any change in their competitor’s operations or strategy, such as raising or lowering prices, holding new promotions, or switching to new operating hours. This allows for a more agile and flexible business strategy that is always evolving, helping the company respond better to competition and avoid stagnation.
Fraud and other crimes coming can be detected even before they happen
Businesses, especially those that have become very successful in their chosen industry, may have to contend with fraudsters and criminals attacking from all directions – even from the inside. With real-time data analytics, any suspicious movements that could lead into fraud, theft, insider trading, and more can be flagged for further observation the moment they’re detected. For example, a financial institution can be alerted by an analytics program a customer from a political hotspot is trying to deposit a large amount of money, a red flag for money laundering. Such tools can help the company keep itself from becoming a victim or an accomplice to a crime.
It improves service, which can then lead to a higher conversion rates and revenues
Just like how real-time data analytics can immediately alert companies if something is hampering their internal business processes, it can also quickly flag any issues that their customers are having with their products or services. This allows these companies to respond more quickly and mitigate these concerns before they can be blown out of proportion. Such a benefit is important, especially nowadays when social media can conflate simple, easily resolvable issues into huge PR disasters.
It helps businesses know what they’re doing well and capitalize on them
Real-time data analytics can also give organizations immediate insight into the things that they’ve been doing that have had a positive impact on their business. This will then allow them to capitalize on it and spread the effects to other aspects of their business.
For example, a particular employee may be doing so well in one of the company’s branches that customers are making it a point to visit that branch just to be served by that employee. Real-time data analytics can provide the company with sufficient evidence that this person deserves a promotion, thus rewarding and capitalizing on their good performance and rapport with their customers. This can help foster employee loyalty and job satisfaction, and encourage the same kind of behavior in other personnel.
It helps businesses keep track of consumer trends
Real-time data analytics allow businesses to keep themselves abreast of consumer trends and other activities like spending habits or product preferences. Businesses can then apply different strategies to match these habits, like stocking more popular brands and products or slashing off the retail price of a slow-moving item. This, in turn, can result in lower costs and better revenue prospects.
Without the right tools, such information about consumers can be impossible to predict or slower to come by. This would result in several missed opportunities for growth and improvement. With real-time data analytics, organizations would miss fewer opportunities and could continuously make themselves relevant in the eyes of their customers.
As detailed in the various above-mentioned scenarios, real-time data analytics solutions are a valuable asset for any organization. Consider the investment on such technologies as a gift that keeps on giving: you are guaranteed to reap long-term benefits as long as you know how to deal with the data that you have at your disposal.