APPLICATION OF

BUSINESS ANALYTICS
• FINANCE
BA is of utmost importance to the finance sector. Data Scientists are in
high demand in investment banking, portfolio management, financial
planning, budgeting forecasting etc.

For example: Companies these days have a large amount of financial

data. Use of intelligent Business Analytics tools can help use this data
to determine the products’ prices. Also, on the basis of historical
information Business Analysts can study the trends on the performance
of a particular stock and advise the client on whether to retain it or sell
it.
• MARKETING

Studying buying patterns of consumer behavior, analyzing trends, help in

identifying the target audience, employing advertising techniques that can
appeal to the consumers, forecast supply requirements, etc.

For example: Use Business Analytics to gauge the effectiveness and

impact of a marketing strategy on the customers. Data can be used to
build loyal customers by giving them exactly what they want as per their
specifications.
• HR PROFESSIONALS

HR professionals can make use of data to find information about

educational background of high performing candidates, employee attrition
rate, number of years of service of employees, age, gender, etc. This
information can play a pivotal role in the selection procedure of a
candidate.

For example: HR manager can predict the employee retention rate on the
basis of data given by Business Analytics.
• CRM

Business Analytics helps one analyse the key performance indicators,

which further helps in decision making and make strategies to boost the
relationship with the consumers. The demographics, and data about
other socio-economic factors, purchasing patterns, lifestyle, etc., are of
prime importance to the CRM department.

For example: The company wants to improve its service in a particular

geographical segment. With data analytics, one can predict the
customer’s preferences in that particular segment, what appeals to
them, and accordingly improve relations with customers.
• MANUFACTURING

Business Analytics can help you in supply chain management, inventory

management, measure performance of targets, risk mitigation plans,
improve efficiency in the basis of product data, etc.

For example: The Manager wants information on performance of a

machinery which has been used past 10 years. The historical data will
help evaluate the performance of the machinery and decide whether costs
of maintaining the machine will exceed the cost of buying a new
machinery.
• CREDIT CARD COMPANIES

Credit card transactions of a customer can determine many factors:

financial health, life style, preferences of purchases, behavioral trends, etc.

For example: Credit card companies can help the retail sector by locating
the target audience. According to the transactions reports, retail
companies can predict the choices of the consumers, their spending
pattern, preference over buying competitor’s products, etc. This historical
as well as real-time information helps them direct their marketing
strategies in such a way that it hits the dart and reaches the right
audience.
• TRANSPORTATION
• When it comes to using data in transportation, it is not just limited to
analyzing the traffic patterns and finding the fastest route possible. Now,
transportation services are using data to take their services up by a
notch.
Uber Using Data to Identify Look-alike Trips
Uber uses its algorithms to identify rides that start near a similar
pickup point, end near, and are happening around the same time
as another ride. This data enables Uber to cater to passengers
willing to have a similar journey but by paying less. This is
where Ubers Pool feature comes into play. Thanks to this car-
pooling service, Uber can serve many people at once, ensure its
drivers are occupied, and eventually reduce its overall carbon
footprint.
• ENTERTAINMENT
With the internet consumption higher than ever before, entertainment businesses are coming up with
innovative ways to engage its audience and create a more substantial customer base. The show-biz
industry is ready to go all out from creating platform Originals to selecting shows and movies with more
than just a mass appeal.

Netflix Using Data to Increase Watch Time

With over 223 million streaming subscribers worldwide as of 2022, Netflix is

a force to be reckoned with. To stay ahead of its competitors like Amazon
Prime and ensure subscribers don’t cancel, Netflix needs methods to increase
a users average time spent on the platform. For instance, the company
knows if each user watches 15 hours of content each month, they are 75%
less likely to cancel. To ensure users complete this time, Netflix uses data to
enable post-play, which automatically plays the next episode of a TV show
unless the user opts out. This automatic suggestion does not only encourage
users to spend more time but also helps Netflix understand audience
preferences.
• BANKING
Once upon a time, customers dreaded visiting banks due to the long waiting time,
time-consuming processes, and poor customer service. However, with analytics, a
few banks have started enhancing their services to improve the overall experience.

Bank of America A Virtual Step to Serve its Customers

Using its customer data, Bank of America identified that most

customers visit the bank daily just to check their transaction
histories and get information about upcoming payments. To help out
customers with such activities, this bank set up a virtual assistant
that helps customers view transaction histories or details on pending
bills. So, primarily, it uses data to provide quick answers and save
customers time.