In times of uncertainty, business leaders look to the levers around them they can control – this begins with a focus on retaining market share and ways to mitigate risk. While many times this means postponing investments in new technologies, advanced analytics and AI-based business intelligence tools buck the trend because of their ability to surface actionable insights that are low-risk, high-reward.
Here are the 3 ways advanced analytics can serve to future-proof your business:
Advanced analytics can help companies figure out which products or product attributes will thrive no matter what the economic environment is. By leveraging a wide array of external data sources, advanced analytics platforms can help pinpoint consumer sentiments down to the specific product attributes or benefits that are desirable and match those against products making those claims on the market. In the food and beverage space in particular, past recessions have shown that if consumers enjoy a particular product, that enjoyment is unlikely to lessen even in a recession and there is an opportunity for a brand to tap into that need. Marketers are then in a better position to create messages that resonate more with consumers and establish long-term brand equity and trust.
Advanced analytics enables predictive insights that allow businesses to make decisions based on data, not conjecture. Nothing forces a keen appreciation for actionable insights like a crisis. Everyone wants to be able to look into a crystal ball to say what will happen in the future. Predictive analytics generate sales and demand forecasts that take into account different data types like point of sale data, demographic data, KOL recommendations, product reviews, voice of the consumer, and many more to increase precision. Predictive analytics also enable simulations that further reduce risk.
Advanced analytics can streamline processes and reduce costs. Companies today are spending enormous sums and allocating armies of data analysts to collect and harmonize both internal and external data sets, yet continue to face challenges in accessing accurate data, linking it across departments, gaining insights in a timely manner and tying them to business strategies. Advanced analytics can replace these manual or siloed processes and provide the biggest bang for the buck in terms of improving efficiencies and generating cost-savings, faster time to insight and successful business outcomes.
Statistics show that data-driven organizations are 23 times more likely to acquire customers, 6 times more likely to retain customers and 19 times more likely to be profitable. In times like these, it is easy to see why advanced analytics are crucial.
*This blog post originally appeared on Signals-Analytics.com. Kenshoo acquired Signals-Analytics in December 2020. Read the press release.