Edgar Radjabli is a dentist known for his specialization in dental implants. He is following a step-by-step guide to making sure that he is providing his patients with the right dental care. Actually, to anything you do, you have to make sure that you are following steps and you are basing everything on data to ensure that everything is being processed and done accordingly.
If you own a business, it is strongly recommended that you consider data analytics. And when using this tool, it is a must that you know the available types of data analytics to make sure that you are getting everything right, from the collection of data to creating an action plan and executing it.
There are 4 types of data analytics, descriptive analysis, diagnostic analysis, predictive analysis, and prescriptive analysis. To provide you with each of the types in detail, read this article.
Steps For Data Analytics
Are you planning to use data analytics for your business? If so, you are making the right decisions as this comes with a lot of benefits that you can help your business today and even in the future.
Generally speaking, hiring third-party analysts is more recommended even if you know the steps as these experts are well trained in terms of analyzing data and creating resolutions. Needless to say, there is nothing wrong if you know the types so you are guided.
- Descriptive analysis
This analysis tracks the past and confirms what happened. Descriptive analysis is mostly being used when tracing sales leads, performance or KPI, and more.
- Diagnostic analysis
This on the other hand aims to assess what happened or why something has happened. After generating the descriptive analysis and getting both positive and negative occurrences, the diagnostic analysis will then diagnose while these occurrences happen.
For instance, June sales are better than July and August, the diagnostic analysis will determine what made June sales high so it can be used moving forward. It can be a team changing their marketing strategy, their approach, etc.
- Predictive analysis
From the word itself, the predictive analysis predicts the turn of events in the future. The prediction is based on the collected data for the past years. Although predictions are based on past occurrences and numbers, it is not 100% assurance that predictions will occur as is.
For example, every year for the past 5 years, the business increases its revenue by 30%, hence the prediction is that the business revenue will increase 30% next year. What was discussed is just a simple sample, as this type of data analysis can go as far as sales forecasting, qualifying leads, risk assessment, or other more complex issues.
- Prescriptive analysis
After getting all the data above, descriptive, diagnostic, and predictive, an action plan will be done so possible issues in the future can be avoided, and that improvements in the business will occur. Most of the decisions recommended by data analysts are data-driven hence expect a more accurate resolution and action plan can be achieved.