Big data analytics is a hot topic, and one of the most effective ways of identifying performance metrics to measure your business’s success. Whether you are reevaluating your existing performance metrics or looking for ways to leverage big data analytics to inform smarter business decision making, we’ll get you up to speed with what you need to know.
What are performance metrics?
Performance metrics are a quantifiable measurement of value used by businesses to track and assess the progress of a specific program, team, individual, or long-term business goal. Every aspect of a company is measured against performance metrics. CFOs evaluate financial metrics such as Net Profit Margin and Operating Cash Flow. The sales team tracks metrics, including Sales Growth and Average Purchase Value. And SaaS companies focus on customer retention metrics such as Customer Churn Rate.
What’s the difference between metrics, analytics, and KPI?
Metrics, analytics, and Key Performance Indicators (KPI) are all used in measuring business success, but the terms are not interchangeable.
Performance metrics are what is being measured. Metrics can be gathered from nearly any aspect of business operation, but not all metrics are necessarily critical to success.
A KPI is a type of performance metric that is critically important to the company. KPIs are used to measure and communicate how successful efforts are in accomplishing key business objectives.
Analytics focuses on what that information means to your business. Analytics collects and processes all of the performance metrics and uses statistical models and other methodologies to deliver business insights based on the data.
How do you choose the right metrics?
When choosing performance metrics and KPIs, context is everything. What’s important at any given point in your sales funnel or product lifecycle is unique to your specific company at the time. The right metrics to track are relevant to your business strategy, inform smart decisions, and represent an accurate measurement of success. Our recommendation is to choose your KPIs carefully. Don’t overwhelm stakeholders with more information than they can use. Select only a few KPIs that are directly correlated to specific business goals.
What tools do I need to track key performance indicators?
A KPI dashboard is the primary tool that you’ll use for tracking your most important business metrics. To take advantage of enterprise-level analytics and up-to-the-minute accuracy, we typically recommend integrating one of the leading dashboard reporting software tools such as Asana, Geckoboard, Salesforce, or Tableau with your business’s cloud service platform. Both Google Cloud, AWS, and Microsoft Azure offer analytic tools and easy integration with third-party KPI dashboards.
How is big data analytics used to identify business metrics?
Big data analytics helps companies spot emerging trends, uncover patterns, identify customer preferences, develop efficiencies, and ultimately gain a competitive advantage. Once actionable insights are identified from data analytics, business leaders can set goals and establish metrics to track, measure, and communicate progress.
What are the types of analytics used in big data?
Data analytics offers several different ways to examine and interpret vast amounts of information. The four primary types of analytics used in big data include:
Often used in conjunction with AI and machine learning, prescriptive analytics helps identify areas of optimization and make recommendations to improve near-term outcomes.
Predictive analytics seeks to identify trends, correlations, and causations by using predictive and statistical modeling. Historical data is examined to make predictions on future outcomes.
Diagnostic analytics uses techniques, including data mining and data discovery, to help identify in-depth insights into what happened in a particular situation and why.
Descriptive analytics is a type of business intelligence used to provide descriptive and often high-level summaries of what is happening based on current and historical data.
How do I select a big data analytics consultant?
Big data analytics is a booming industry with a wide selection of consultant services. When selecting a big data analytics consultant, be sure to request a proof of concept before making your final selection. This will help demonstrate the consultant’s methodologies and provide a solid basis for comparison. At NextPhase.ai, we offer a free proof of concept before the start of any engagement. To request a free proof of concept, email us at firstname.lastname@example.org
Do I need a big data analytics consultant near me?
Selecting a big data consultant near you is beneficial for working one-on-one with your analytics and IT team. On-site support can be especially helpful when dealing with a mix of on-premise and cloud-based analytics. If your preferred analytics consultant works remotely, an established communication plan and virtual workflow are critical for an efficient and effective planning and development process. At NextPhase.ai, we provide a proven virtual workflow for consulting with local companies here in the Bay Area as well as clients across the country and around the world.
Have questions or want a free PoC? Email us today.
Operating globally, NextPhase.ai has 60+ years of combined consulting experience. NextPhase.ai delivers analytics and data science solutions, which unlock the value of people, process, and technology investments. Leveraging deep knowledge in BFSI, retail analytics, CPG, manufacturing, technology, and logistics, we create long lasting value for top companies in the Bay Area and Northern California. https://nextphase.ai