In today's data-driven world, leveraging data analytics is more crucial than ever for businesses looking to stay competitive and drive growth. Numerous studies and reports have highlighted the substantial benefits and impressive return on investment (ROI) that companies can achieve through effective use of data analytics. Here’s a summary of the key statistics and insights, organised by theme.

Customer Acquisition and Retention

Data-driven organisations significantly outperform their peers in acquiring and retaining customers:

• 23 times more likely to acquire customers

• 6 times more likely to retain customers

• 19 times more likely to be profitable

These organisations leverage data to make informed decisions and improve customer experiences, resulting in satisfied customers who remain loyal.

Profitability and Cost Reduction

Businesses that utilise big data and data analytics see remarkable improvements in profitability and cost efficiency:

• 8% increase in profit

• 10% reduction in cost

• 20% of earnings before interest and taxes (EBIT) contributed by artificial intelligence (AI)

The transition to monitoring and analysing data also leads to better strategic decisions, improved operational processes, and a deeper understanding of customers.

Strategic Decision-Making

Despite the clear benefits, many organisations still struggle to fully leverage data analytics for strategic decision-making:

• Only 12% of companies use data-driven intelligence to guide key business decisions

• 88% suffer from the waste, inefficiencies, and lost opportunities due to poor data practices

• Only 1 in 10 companies compete on analytical insights

• Merely a quarter of companies describe themselves as data-driven

• Only 21% say they have a data culture in their organisations

This gap highlights a significant opportunity for businesses to invest in data analytics and develop a data-driven culture.

Conclusion

The statistics clearly demonstrate the transformative power of data analytics in driving business success. From increased profitability and cost savings to enhanced customer acquisition and retention, the benefits are substantial. However, many organisations are yet to fully realise these advantages, indicating a critical need for investment in data analytics and the development of a robust data culture. By doing so, businesses can unlock significant value and ensure sustainable growth and competitive advantage.

For businesses looking to tap into these benefits, hiring a data analytics consultant is a strategic move. Consultants bring the necessary expertise to harness the full potential of your data, driving growth and ensuring long-term success.

For more insights and to explore how data analytics can transform your business, visit Ellen Ceklic’s Services.

References

• McKinsey (2022) The data-driven enterprise of 2025, www.mckinsey.com/capabilities/quantumblack/our-insights/the-data-driven-enterprise-of-2025

• BARC (2023) https://barc-research.com/bi-analytics-survey-23/

• BCG (2023) www.bcg.com/press/4april2023-companies-built-for-future-shareholder-returns-three-times-greater

• IDC (2022) IDC FutureScape: Top 10 Predictions for the Future of Operations, www.idc.com/getdoc.jsp?containerId=prUS49960122

• Deloitte (2019) www2.deloitte.com/us/en/insights/topics/analytics/insight-driven-organization.html

• NewVantage (2023) Data and AI Executive Survey, www.newvantage.com/thoughtleadership