Although many groups, organizations, and experts have different ways of approaching data analysis, most of them can be distilled into a one-size-fits-all definition. Data analysis is the process of cleaning, changing, and processing raw data and extracting actionable, relevant information that helps businesses make informed decisions. The procedure helps reduce the risks inherent in decision-making by providing useful insights and statistics, often presented in charts, images, tables, and graphs.
Ask yourself why you’re doing this analysis, what type of data analysis you want to use, and what data you are planning on analyzing. .
Guided by the requirements you’ve identified, it’s time to collect the data from your sources. Sources include case studies, surveys, interviews, questionnaires, direct observation, and focus groups. Make sure to organize the collected data for analysis.
Not all of the data you collect will be useful, so it’s time to clean it up. This process is where you remove white spaces, duplicate records, and basic errors. Data cleaning is mandatory before sending the information on for analysis.
Here is where you use data analysis software and other tools to help you interpret and understand the data and arrive at conclusions.
Now that you have your results, you need to interpret them and come up with the best courses of action, based on your findings. Data analysis tools include Excel, Python, R, Looker, Rapid Miner, Chartio, Metabase, Redash, and Microsoft Power BI.
Data visualization is a fancy way of saying, “graphically show your information in a way that people can read and understand it.” You can use charts, graphs, maps, bullet points, or a host of other methods. Visualization helps you derive valuable insights by helping you compare datasets and observe relationships.
Better Customer Targeting: You don’t want to waste your business’s precious time, resources, and money putting together advertising campaigns targeted at demographic groups that have little to no interest in the goods and services you offer.
You Will Know Your Target Customers Better: Data analysis tracks how well your products and campaigns are performing within your target demographic
Better Problem-Solving Methods: Informed decisions are more likely to be successful decisions. Data provides businesses with information. You can see where this progression is leading.