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Descriptive Analytics

 Descriptive analytics is a statistical interpretation used to analyze


historical data to identify patterns and relationships.
 Descriptive analytics seeks to describe an event, phenomenon, or
outcome. It helps understand what has happened in the past and
provides businesses the perfect base to track trends.
 Results are typically presented in reports, dashboards, bar charts and
other visualizations that are easily understood.
 Descriptive Analytics generally answers “What Happened?” or
“What is Happening?”
 Descriptive analytics helps to answer questions such as:
o “How much did we sell in reach region?”
o “How many and what type of complaints did we resolve?”
o “What was our revenue and profit last quarter?”

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Process/steps of Descriptive Analytics

Quantify the Identify relevant data Organize the data


Goal (Business (Data Understanding) (Data Extraction and
Understanding) Preparation)

Presentation Data Analysis

1. Quantify goals: The process starts by translating some broad


business goals, such as better business performance, into specific,
measurable outcomes such as sales-by-product, cost-per-sale or
conversion rate.
2. Identify relevant data: Teams need to identify any types of data
that may help improve the understanding of the critical metric. The
data might be buried across one or more internal systems or various
third-party data sources.
3. Organize data: Data from different sources, applications or teams
needs to be cleaned and normalized to improve analytics accuracy.
4. Analysis: Various statistical and mathematical techniques combine,
summarize and compare the raw data in different ways to generate
data features.
5. Presentation: Data features may be numerically presented in a
report, dashboard or visualization. Common visualization techniques
include bar charts, pie charts, line charts, bubble charts and
histograms.

Application of Descriptive Analytics:


Descriptive analytics can be used to summarize different types of data.
The following kinds of data can all be summarized using descriptive
analytics:
 Financial statements
 Surveys
 Social media engagement
 Website traffic
 Scientific findings
 Weather reports
 Traffic data

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