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What is Descriptive Analytics?

Descriptive analysis answers the question: "What happened?" This type of analysis is most used by customers and provides reports and analysis based on past events. It helps companies understand things like:

  • How many sales have we made as a company?

  • What is gross domestic product?

  • How many customers did they abandon last quarter?

Descriptive analysis is used to understand a company's overall performance and is an easy starting point for a company since the data is usually readily available for creating reports and requirements.

Before attempting to progress further into data analysis, it is crucial to first establish a basic competency in descriptive analysis. Core competencies include:

Basic data modeling and validation of best practices,

Communication and visualization, and

core skills. There is a complete picture of the information about the story and the entire decision-making process. Use descriptive analytics to understand the current state of your business. Evaluate using analytics to find out how your business achieves this. Predictive analytics is useful for identifying trends: will current trends continue? Finally, text analysis can help you evaluate all aspects of the future and prepare practical strategies.

Depending on the problem you are trying to solve and your goals, you may choose to use two or three of these types of analysis, or use them all consecutively, to better understand the data that tells the story.

Who Needs It? Data Analysis?

Every decision-making business professional needs a basic understanding of analytical skills. Access to information is more widespread than ever. If you strategize and make decisions without evaluating the information you have, you may miss important opportunities or notice danger signs.

Professionals who can benefit from data analysis skills include:

Developing Marketers who use customer data, industry trends, and data from past campaigns to plan marketing strategies

Finance professionals use historical and industry data to illustrate how financial institutions operate.

Human resources and diversity, equity and recruitment professionals understand employees' perceptions, goals and behaviors and adapt this to the industry. Data to make meaningful changes in their organizations. Learn about the four main types of data analysis to gain more insight into your data. Here you'll find an overview of the types you can use individually or as a group to get the most out of your business information.

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