4 major achievements of advanced analytics in the business world
The advent of advanced analytics has brought sweeping changes to the business world. Virtually all industries have been introduced to ways this modern innovation can improve their operations and keep their companies moving forward.
The influence of these analytics solutions is matched in significance by the wide array of its applications. Insight from these analytics can drive change in almost every aspect of business operations, from customer engagement and security to marketing and building operations. Even after years of access to state-of-the-art analytics tools, businesses are still uncovering new ways to leverage data to cut costs while improving performance.
Here are four of the biggest achievements analytics has unlocked in recent years:
1. More efficient healthcare services
Big data’s implications for healthcare are enormous. Analytics is seen as a tool to power new predictive forms of diagnosis and disease management, while enabling the use of mobile apps and wearables to provide better patient support and health monitoring.
However, big changes are already afoot in terms of how healthcare companies manage patient records. Analytics tools have paved the way for unified health records systems that digitize patient information and increase access across departments and between different hospitals. Not only does this increase efficiency and productivity, giving patients faster and more reliable care, but it offers healthcare companies huge financial incentives. According to McKinsey & Co., Kaiser Permanente used a digital records system called HealthConnect to cut its operating costs by $1 billion.
2. Unprecedented in-store personalization
Driven in part by online shopping, retailers have built acquisition channels to reel in troves of information about customers — and now they’re using this to build better in-store experiences. That’s what Talbots has done through its adoption of clienteling technology to empower store associates through better selling tools, according to Mad Mobile. Using this technology, any in-store associate has the power to process mobile payments, check real-time inventory at multiple store locations, pull up customer shopping profiles and make recommendations based on past activity.
This fusion of analytics with physical store experiences is a perfect response to what consumers have come to expect from their stores. Meanwhile, the move has garnered Talbots a Retail TouchPoints Award for its efforts in mobile innovation. Without data to drive that personalization, such experiences wouldn’t be possible.
3. Combating customer attrition
Reducing customer attrition, or churn, is an ongoing process for any company. Advanced analytics can help by building useful models that illustrate where and why your customers are leaving your brand. Analytics can then be used to optimize your purchase funnel and re-evaluate your targeting and messaging strategy. From there, more campaign-specific approaches can be deployed on a case-by-case basis, including the use of timely promotions, push notifications and emails.
In some cases, the results can be dramatic and can come quickly. According to a case study from The Kini Group, livestock feed distributor MannaPro employed a customer attrition analytics tool to reduce churn by 35 percent year-over-year, resulting in an 8 percent growth in profit. Analytics solutions work their magic by shining a light on areas that were previously difficult or impossible to understand without the use of large volumes of data.
4. Improved insurance risk management
Insurance companies lean heavily on data and data analytics to price their products and stay in business. Increased access to data, and advanced analytics tools to make sense of that information, are a boon for these businesses and can improve the customer side of things, too. By using analytics to gather and process data from new sources, insurers can increase their access to consumer data while consumers receive a more accurate price for the insurance products they buy.
State Farm is one of several insurance companies to use advanced analytics to directly support a consumer product. According to the North American CRO Council, the company offers a Driver Feedback App that scores drivers on their driving behavior and then uses that data to make recommendations for safer driving.
In the process, State Farm is gathering new data points about driver behavior and could ultimately use that information to raise or lower prices. For now, drivers are still able to decide whether they want to share this information, but many do so in hopes they can score a better deal.
These landmark achievements are just scratching the surface of what analytics can do to transform the business world.