Analytics involves analyzing data to gain insight. Descriptive analytics is studying the past to understand the strategy in the future. It helps in understanding consumers’ past choices to predict what they will prefer in the future. It helps in predicting what the consumer’s underlying needs are. It also helps in analyzing business performance. Once we know the performance we can tweak our work to better the future performance.
We use descriptive analytics every day and many a time without realizing so. When we take numeric average, deviation, count, percentage etc., we are using descriptive statistics. It is not a complex and complicated model and it can make our decision making much simpler if we understand how and where to use it.
Customer choice prediction – Descriptive analysis is used when a consumer shops online & the sites tracks the cookies left by that visitor. It tries to understand the customer’s past purchases and suggests future buys. In case the customer bought clothes it will analyze on the basis of brands, prices, styles bought previously. It will track customers with similar choices and suggest these prospective customers other items that could interest him/her.
Demarketing – It can be used to track the timings the business has maximum customers and provide happy hours at lower traffic times. This will help in lowering the pressure at high traffic timings. It will also help to analyze the changes in profit and whether the demarketing (Reducing or modifying demand on will) has positively affected the business or not.
Situational analysis – It can be used to study national or regional data for population, epidemics, diseases, crimes etc. This data can give us great insight into the problem. It can also help in resolving issues arising from the disasters and be better prepared for the next one.
WHY THE NEED?
There is one thing common in all applications data. When a customer goes online his movements are recorded. This data is quite exhaustive. It not only keeps a track of the final buy but also the items that the customer showed interest in. The data is large and analysis involves considering the right data and converting it to information that will help us in increasing our business.
If we study the consumers closely, we can understand and fulfill their underlying needs and this will result in customer satisfaction. The primary goal of any organization is to generate more customer value and descriptive analysis helps in making it achievable for us.
Data is an asset if it can be converted into right information. Analytics gets artificial intelligence into the business process. Descriptive analytics provides a snapshot of the past. Descriptive analytics helps us with what we did and what we are doing now. It helps us ultimately in taking better business decisions.
The author of the article is Anuradha Apan, Student, FIIB
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