Top 6 Advanced Analytics Techniques to Start Today

Business owners using laptop to research advanced analytics techniques.

Advanced analytics techniques are utilized by businesses to examine raw data and use that information to optimize operations, make data-driven decisions, and create valuable company insights. With more data being collected every day, many companies need more than traditional business intelligence(BI) tools.

What Is Advanced Analytics?

Advanced analytics is an examination of data or content with advanced tools with capabilities that are beyond the capabilities of conventional BI tools. Advanced analytics provides businesses with extensive insights that allow business owners the capability to analyze, make predictions, and decisions to help place the company in the best position moving forward.

There are various advanced analytics techniques and methods to consider when trying to propel your business forward. Some of these techniques include data mining, machine learning, and cohort analysis to name a few.

The Top 6 Advanced Analytics Techniques to Consider

In the world of business, having insights into your customer base can be the difference between a successful marketing campaign and a complete flop. Ultimately, there are many methods to choose from, but how do you know which one will lead to the most successful business? We have put together a list of some of the top advanced analytics techniques and when the methods are most effective.

1. Predictive Analysis

Predictive analysis is an effective forecasting tool that has the greatest impact when used in tandem with data mining, statistical models, machine learning, data clustering, and other analytic tools. Predictive analysis centers on predicting the likelihood of a certain event happening. This allows organizations to make decisions accordingly once they have this knowledge.

2. Data Mining

Data mining is the collection, computer processing, and storage of data. The main purpose of advanced analytics is to make predictions, identify anomalies and allow businesses to make quick decisions in an ever-changing environment. Data mining is an effective analysis tool, mainly from the introduction of Big Data. Big Data made it possible to collect a mass amount of data.

Data Mining examines the relationship between historical data and real-time data to give a more holistic view of the market. This is a crucial piece of advanced analytics and aids in more than just internal aspects of your business. It drives value for other, more client-facing aspects of your business. Other departments it helps include sales, marketing, and customer service-related jobs.

3. Cluster Analysis

Cluster analysis is highly related to data clustering, in that it involves segmenting large amounts of data. The difference is that cluster analysis looks at the similarities and differences between set data. The information is usually presented in a box plot or similar graph. In market research, this is most commonly used for classification purposes. Identifying the age, income ranges, and general location of users.

4. Machine Learning

This cost-effective technique utilizes algorithms to analyze large quantities of data which increases the speed of data processing and creates predictive statistical models without much human involvement. Machine learning is a feature of AI that is not necessarily new, but has gained new traction and attention in recent years. A large increase in the amount of data being mined in our modern age is the main contributor to success and attention. While this increase can make some consumers a little uncomfortable in knowing some of their general information is mined, there is no doubt that it allows businesses to create additional value for consumers while raising overall satisfaction in the process.

5. Cohort Analysis

This subset of behavioral analytics collects user data, gathers, and groups data from various platforms based on similarities. The focus of Cohort analysis is to gain a better understanding of consumer behavior patterns. It works particularly well with improving customer satisfaction and Customer Lifetime Value(CLV).

Get Proven Results Today

ResponsivMR offer full-service advanced analytics services to businesses of all sizes and industries with an experienced staff of experts. Contact us and learn how our advanced analytics techniques can propel your business ahead of the competition today.