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Embedded Analytics is the ruler of the businesses in this modern digital world. Analytics have been embedded ubiquitously into almost all the areas of life starting from applications, consumer gadgets, and other intelligent things.
According to Mordor Intelligence, the Embedded Analytics market is expected to grow from USD 60.47 billion in 2023 to USD 115.92 billion by 2028, with a CAGR of 13.90% during this period.
Technically, Embedded Analytics is the use of analytics and reporting capabilities in transactional business applications. Using Embedded Analytics the need to toggle between separate systems to extract useful insights is eliminated, enabling great control over the entire process to its users.
At the present time, companies are actively implementing Embedded Analytics to make decisions that are context-specific and have many wide-ranging benefits. The companies are becoming more customer-oriented and hence, insights obtained from Embedded Analytics help them to understand their audience better and provide them all the information they expect.
A breakdown of the intelligence provided by Embedded Analytics
The following types of Intelligence are provided by Embedded Analytics to the companies:
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Intelligence On the Process
This type of intelligence enables customers to use their data strategically to identify trends, analyze the business, and analyze business performance metrics.
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Intelligence In the Process
Intelligence In the Process works while a process is running or simply we can say that it changes the process.
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Intelligence DRIVING the Process
Intelligence DRIVING the Process uses metrics to modify the process flow and automatically trigger the decisions. These types of intelligence provided by Embedded Analytics are very useful in enhancing the overall functioning of the applications.
Benefits of Embedded Analytics
Now, let’s take a look at some of the benefits that businesses can have if they make use of Embedded Analytics:
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Help the Companies in Making Data-driven Decisions
Using Embedded Analytics, companies get timely data insights that help them think in an analytical way and make data-driven decisions for the organization. The benefit of Embedded Analytics does not end here; it also provides an opportunity for companies for agile analytics development. It has also been observed that Embedded Analytics not only provides business analytics to the users but also provides user insights to the analytics development team, helping the team to improve their existing offerings and develop new products.
According to the Gartner Group, “A key characteristic of a data-driven culture is using data in a pervasive way. Data-driven companies establish processes and operations to make it easy for employees to acquire the required information.”
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Improved Customer Satisfaction
Embedded Analytics have helped B2C businesses in a lot of many ways. For example, Amazon and Netflix experienced the benefits of using Embedded Analytics in terms of repeated sales, larger shopping carts, and happier customers. With a larger family of approximately 692 million viewers, Netflix actively combines an array of Big Data Management platforms, content curation, and data science tools to deliver targeted recommendations to the audience. It’s been confirmed by Netflix that the use of analytics behind its recommending engine has significantly decreased its customer churn by several percentage points and has increased the number of lifetime clients producing $1 billion a year from customer retention.
Talking about Amazon’s point-of-sale recommendations, the analytics embedded in its customer portal such as ratings, reviews, and product recommendations are almost unnoticeable and come in front of the customer at the right time when they are about to make a purchase. These analytics have made Amazon stand out from the rest of its competitors for the past 11 years. So, we can see the important role Embedded Analytics plays in bringing in customer satisfaction.
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Increase ROI on Data Transformation Investment
It is a well-known fact in the I.T. industry that developing stand-alone products requires a great amount of work in order to acquire and transform data into useful insights. The I.T. people know that the Extraction/Transformation/Load (ETL) phase of an analytics project is always “the long pole in the tent”. Along with being time-consuming, it is also quite expensive to source, profile, clean, test, audit, confirm and validate data prior to analytics use. But, with the implementation and stickiness of Embedded Analytics, the risk associated with businesses can be reduced to a great extent.
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Increased Productivity
Performing analytics using legacy methods involves using spreadsheets to prep, analyze, visualize, and distribute analytics. These spreadsheets along with being easy to use have some drawbacks which kill the productivity of the associated team. These drawbacks include little data validation, static data, high susceptibility to data corruption, malfunctioning of embedded macros, and much more. By trading spreadsheets with Embedded Analytics, all such pitfalls can be easily overcome and productivity gains can be experienced. Using Embedded Analytics, the users have to spend less time switching between applications & analytics tools and spend more time on value-added activities.
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Increase in Revenue
Embedded Analytics can help businesses to increase their sales, retain customers, and expand product offerings. Businesses can have 4 distinct opportunities using Embedded Analytics:
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Decreased Churn Rate:
Analytics-enabled applications have problem-solving capabilities to secure existing customers.
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Increased Win Rate:
Adding Embedded Analytics helps the businesses offer new features to the audience which can attract some new users as well.
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Expanding Product Licensing:
By adding Embedded Analytics, businesses can help target different types of users.
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Feature Monetization:
Embedded Analytics can provide new opportunities for existing customers to buy new value-added functionality.
Among many businesses, FitBit is the best example to look at. FitBit uses all the above-mentioned four revenue opportunities into action. The device transfers the user activity data to the cloud which is then used to develop personalized analytics designed to optimize the performance which further helps to decrease the churn rate.
Conclusion
Embedded Analytics is pivotal in today’s digital landscape, offering transformative advantages to businesses. As the market for Embedded Analytics continues to grow, organizations can harness its power to stay ahead of the curve.
At Sigma, we specialize in providing tailored BI and Analytics services that empower organizations to connect directly to their relevant business data. Our goal is to put the right information at your fingertips instantly, enhancing the decision-making process through real-time reporting and analysis.
By embracing Embedded Analytics, you can enjoy many tremendous opportunities to increase productivity, strengthen competitive positioning, and improve customer satisfaction. We are here to help organizations leverage Embedded Analytics to unlock their full potential and thrive in the data-driven era.
