In this brave new world of big data, it can feel like a challenge to stay on top of all the insights you’re told you need. We’re here to make things a little simpler by breaking down different types of data analytics that your teams will come across. Read on to learn the five key types of data analytics every business should know.
The simplest way to think of descriptive analytics is as statistics. Before you can start deciphering the meaning of your data, you need to collect information. The information you collect will differ based on your goals. For example, if you want to know about sales trends, you might collect sales information from a particular item to learn that it sells far better in summer than in winter.
Diagnostic analytics is all about taking a closer look at your data to find the root causes of things. With diagnostic analytics, you observe data points one by one until you can determine whether that individual piece of data has the effect you’re searching for.
Predictive analytics is self-explanatory—you’re looking for a forecast of things to come. Based on information from the past, what trends will be hot in the coming season or year? Predictive analytics alone can be powerful, but you’ll see the best results when you couple it with prescriptive analytics.
Prescriptive analytics takes predictions and tests out all the options before suggesting the best course of action. Salesforce data management and prescriptive analytics can help you avoid pitfalls while staying on the optimal route to your final destination.
Augmented analytics takes the best aspects of artificial intelligence and machine learning to provide automated data preparation as well as insight discovery. It takes predictive and prescriptive analytics, combines them, and gives you your answers in the snap of your fingers.
Now that you understand these five key types of data analytics every business should know, we hope you have the tools you need to take your business to the next level.