Approximately 35% of Amazon’s revenue comes from its recommendation engine. Google’s ad revenue amounted to $135 billion in 2019. Netflix’s AI-powered recommendation engine saves the company over $1 billion each year.
What do these companies have in common? They all leverage data science for all their marketing and daily operations.
In today’s tech-centric world, data has become the new currency.
Digitally savvy companies are leveraging their most valuable asset—data, to scale their operations and achieve a competitive edge. And you can do it too. Here’s how you can improve your business with data science.
1. Finding Your Target Audience
It is estimated that at least 2.5 quintillion bytes of data are created every day (that is 2.5 followed by a staggering 18 zeros).
With this vast amount of data, determining what’s important for your customers can be difficult. Every piece of data you collect—be it from your website, social media, or online surveys—contains info that can be analyzed to help you understand your customers better.
By leveraging data science, you can combine data points to generate insights that will help you target your audience more effectively.
For example, by finding the correlation between age and income or income and personal taste, you could create promotions to groups that are more likely to buy your products. Simply put, data science can help you tailor your products and services to particular groups.
2. Better Decision Making with Valuable Insights
If you want to grow your business and remain relevant in a rapidly changing market, you’ll need to embrace data science to its core.
However, exploiting data science can sometimes pose challenges since the vast majority of data—80% to be precise, is usually unstructured. Such data may require the use of predictive analytics tools to make sense out of it.
By pulling numbers and statistics through data science, your business can gain valuable insights for use in decision-making. These data-driven insights can help you determine beforehand which solutions to take and strategies to adapt for the best outcomes.
If you’re serious about turning data into insights that can be used for decision-making, you might want to invest in data science consulting. Luckily, there are business analytics consulting firms that can provide you with the machine learning infrastructure your business needs. More information on this can be found at rtslabs.com/data-science.
3. Increase Innovation for Better Business Offerings
As the move to digitization intensifies, companies are increasingly utilizing artificial intelligence and machine learning to assess and improve their offerings.
For instance, through machine learning, businesses can identify patterns in data and predict results. A recent MIT Sloan study found that many companies are using AI and machine learning algorithms to analyze data, detect patterns, and understand consumer behavior.
By understanding customer behavior, businesses can brainstorm to solve some of the existing customer pain points. This can help businesses keep their offerings fresh or adjust their product offerings to meet the customer’s needs.
4. Increase the Efficiency & Commitment of Your Staff
By making employees aware of the benefits of using data analytics tools, data science can make them more efficient at their jobs.
Working with data-driven insights, your employees will achieve more in less time. That’s because data analytics can help to eliminate the guesswork in their work.
For instance, your staff won’t have to wait for months to determine whether their proposed sales strategies will work. With live insights, they will be able to tell what strategies are working and allocate more resources where needed.
Working with valuable data insights, your employees will be able to drive more actions towards core tasks and give them the much-needed attention. Hence, improving the overall efficiency of your business.
5. Recruit the Best Talent
Companies are always on the lookout for new talents.
However, recruiting can be difficult, considering that a typical corporate job offer can attract over 1,000 resumes. Big data has made the talent acquisition task easier by providing comprehensive data profiles on individuals.
Using data science, human resource managers can find top talents by scouring social media, recruitment portals, corporate profiles, and job search databases. With data science, your company will be able to process CVs faster and recruit top talent quickly.
Now that you know how you can exploit data science to your advantage, why not give it a try? Feel free to comment and share.