What are the 4 types of Business Analytics Services? Business analytics refers to the processes, tools, and techniques used by companies to measure performance, gain insights into operations, and drive data-driven decisions. There are four main types of business analytics services that companies leverage to improve outcomes:
Descriptive Analytics Descriptive analytics looks at historical data to provide insights into what has happened in the past. This is the most basic form of business analytics and includes metrics, dashboards, and reports that summarize past performance. Descriptive analytics services help companies track key performance indicators (KPIs) over time to spot trends and monitor progress towards goals. Examples include sales reports, web traffic analytics, social media metrics, and customer satisfaction dashboards. The main benefit of descriptive analytics is enabling data-driven conversations about business operations based on facts. Diagnostic Analytics While descriptive analytics focuses on “what” happened, diagnostic analytics tries to determine “why” it happened. This type of business analytics service analyzes data to uncover the factors, causes, and other variables that influence outcomes. Companies can then take action on those drivers to improve results. Examples include A/B testing, cohort analysis, funnel analysis, and root cause analysis. Diagnostic analytics enables businesses to optimize conversion rates, troubleshoot issues faster, and allocate resources more effectively to drive better performance. Predictive Analytics