Have you ever looked up a product online, only to suddenly start getting advert recommendations relating to that product appearing in various places online? Or maybe it was even an advert of something that interested you that you clicked on, and afterwards, you see a similar advert cropping up in every corner? This are just a few examples of how artificial intelligence and data analytics often help businesses like yours.
To get a better understanding of how this works, and how it can be suited to grow your business especially in a covid or post covid season, let us have a quick run through of what these terms mean.
What is Data Analytics?
According to Investopedia, “Data analytics is the science of analyzing raw data in order to make conclusions about that information”. It can be described as a process of examining, transforming, repackaging and modeling data with the goal of getting useful information and conclusions that support decision making.
Simply put, it is using technology to study data in order to find patterns that will help make purposeful predictions.
What is Artificial Intelligence (A.I)?
A.I is the ability of a computer or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence and discernment. Artificial intelligence is intelligence demonstrated by machines, unlike the natural intelligence displayed by humans and animals, which involves consciousness and emotionality. In its simplest form, it is using technology to teach machines to think like humans.
The Convergence between Data Analytics and A.I
The growth in the field of A.I has resulted in machines or computer programs taking over various tasks that would have consumed lots of man-power in the past. These tasks vary from the mundane to highly complex calculations.
With improvements in A.I, big data analytics programs are also able to function more effectively, combing through large amounts of data and providing solutions within a relatively short time. Using A.I, data analytic programs often deliver deeper and better insights beyond the capabilities of most human analysts.
Examples of how Data Analytics & A.I work in business
An example of how these concepts work in tandem is the way social platforms such as google collect data about its users. The data collected ranges from simple biodata, location, hobbies, websites you visit, etc. The collected data is used to create a user profile in their database. The data is then analyzed, with the Google A.I learning about your preferences, such that the next time you are on any of their platforms, they can make suggestions to you based on your likes, for a smoother experience.
To bring this closer, imagine a hypothetical retail store called Right Shops. They offer a loyalty card program that allows customers to accumulate points when they use the loyalty card. The points can be spent on a day at the gym (It is a new gym is also owned by Right Shops).
Data analytics reveals that, out of 10,000 shoppers, only 1,500 cashed in their points for a day at the gym and all of them were middle-aged men. Further analytics reveals that with a 10% increase in advertising directed to middle-aged men, Right Shops will see an increase of 13% in the number of shoppers, and a 20% increase in the number of middle-aged men cashing in on their reward points.
This then helps Right Co determine if it would be willing to make the additional investment in advertising expense or even to what extent it will be willing to make this investment depending on the level of growth anticipated in the number of customers cashing in on their reward points.
A different example is in the way PepsiCo uses data to improve their supply chain efficiency. PepsiCo is a consumer-packaged goods company that relies on huge volumes of data for an efficient supply chain management. The company is committed to ensuring they replenish the retailers’ shelves with appropriate volumes and types of products.
The company’s clients provide reports that include their warehouse inventory and the POS inventory to the company, and this data is used to reconcile and forecast the production and shipment needs. This way, the company ensures retailers have the right products, in the right volumes and at the right time.
Listen to this webinar where the company’s Customer Supply Chain Analyst talks about the importance of big data analytics in PepsiCo Supply chain.
Your Key Takeaways
Since the onset of the Covid-19 pandemic early in 2020, most businesses have been forced to adapt to the new world we have found ourselves in. Some resorted to remote working, others to limiting the number of walk-in customers in line with social distancing rules, while some even had to shut down altogether. These changes on the part of businesses, also imparted the way customers would normally make their purchase decisions, resulting in a boom in online activities.
At a time like this, the use of A.I and big data analytics is a great investment for all businesses, regardless of the size. As a fact, it is arguable that small or medium businesses need it just as much as the big established businesses. Applying them to your business will undoubtedly lead to improved customer retention and business growth as you are better positioned to take good business decisions that satisfy the exact needs of your customers.
Interestingly, most organizations already posses some data. However, it is in properly analyzing and using the data to forecast for business growth that poses a challenge. This is where we come in.
As one of the top business consultants in Nigeria, Eunoia Consulting is properly positioned to apply A.I and Data Analytics to help you analyze your data to proactively anticipate your customer’s needs, personalize their customer experience, streamline your operations, mitigate risks, and accelerate your business growth.
We also offer trainings to top executives of businesses on how to rightly deploy data analytics and A.I in their businesses leading to an exponential increase in their organization’s growth.
Send us a message today, and let our team of professionals help you structure for growth in this covid season.