Data analysis is an essential activity for every business regardless of its area of specialization. However, the kind of analysis techniques and methods you apply significantly impact your company’s growth. Before you even think of data analysis methods, you need first to understand the nature of the data you are dealing with to make the most appropriate choice. Once you have identified the nature of your data, you need to understand that presenting the information from a visual perspective enables 65% of your readers to remember the presented message within the next three days. In addition, data analysis is a wide field involving multiple aspects that you must evaluate keenly. Let’s learn about it!
What is Data Analysis?Data analysis refers to collecting, analyzing, and cleaning unstructured data content using different methods and techniques to identify patterns and uncover in-depth insights about the development of the business. The insights generated from the data analysis process aid in making prudent development decisions that impact business growth. There are different data analysis methods and techniques that you can apply in processing and analyzing your business data. In addition, the techniques can help you analyze your business competition, and identify your primary customers, giving you a clear picture of the available market opportunities. However, you need to have a clear understanding of the kind of data you intend to analyze to be able to get reliable results. You need to understand the difference between qualitative data and quantitative data. What is the difference?
Qualitative DataThis is unstructured data that is usually difficult to analyze, given that it has not been structured. Note that the data should be presented orderly to make it easier for the machine to read and understand. However, qualitative data analysis tends to generate more detailed results that can be used to elevate your business performance. Qualitative data is known to have the ability to go beyond instances that happened and identify the reasons why something happened the way it is. This data type mainly deals with feelings, opinions, and emotions to generate detailed insights.
Quantitative DataQuantitative Data is the kind of data that can be easily quantifiable, such as numbers, numerical data, percentages, and statistics. This type of data is mainly organized in a presentable way such as structured databases and spreadsheets making it easier for machines to digest the content. Analyzing this data is simple since everything is straightforward. The data calculations are mainly meant to help you identify what happened, such as the specific number of customers within a particular region.
Top Data Analysis Methods & TechniquesBefore discussing methods and techniques you need to know best tools to analyze data.
Best Data Visualization Tools to Analyze Data
- Google Sheets
- Microsoft Excel
Monte Carlo Simulation