In a world that is constantly evolving, fueled by rapid technological advancements and ever-
changing market dynamics, understanding how people behave has become an indispensable aspect of business success. As industries adapt to these transformations, data scientists and data analysts have emerged as the facilitators of crucial insights that help companies stay ahead in the game. Among their arsenal of tools, one stands out as the lifeblood of decision-making: consumer behavior data.
Data scientists and analysts are the architects behind the scenes, armed with the ability to navigate vast data sets and extract meaningful patterns. With the explosion of data sources in the digital era, these professionals play a pivotal role in consolidating and deciphering the treasure trove of consumer behavior data.
Near’s new study, the State of Global Consumer Behavior Data surveyed 590 data leaders across industries including Retail, Restaurants, Commercial Real Estate and Travel & Hospitality. And when it comes to which teams are most involved with accessing and analyzing the data, unsurprisingly Data Analysts & Scientists top the list:
Which teams(s) are involved in accessing and analyzing the data?
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Looking specifically at the 155 Data Analysts & Scientists who answered the survey revealed some specific themes around how they work with data, overcome hurdles and think about goals ahead.
Data Silos Are the Top Hurdle According to Data Analysts & Scientists
When asked about hurdles for their teams in using data, the number one challenge data analysts and scientists cited was that data is siloed across the organization – 36% cited this as a challenge versus 23% of data leaders overall. To address this issue, nearly half of data analysts and scientists plan to do more to integrate siloed data across departments in the coming year (49% of data analysts & scientists, vs. 40% of data leaders overall).
The top 3 hurdles according to data analysts & scientists are:
for easy insights
Data Analysts & Scientists Are Confident in Their Use of Data
Despite the hurdles around silos, data quality and more, data analysts and scientists have a rosier outlook overall in how their organization is utilizing data:
- 72% agree that “our organization is doing better than our competitors when it comes to using data for business decision-making” (versus 64% of data leaders overall)
- Just 27% agree that “our organization has a lot of data, but isn’t effective in regularly using it to inform decisions” (versus 39% of data leaders overall)
- Looking forward, 66% plan to use more consumer behavior data for decision-making in the coming year (versus 57% of data leaders overall)
As the teams closest to the data, data analysts and scientists seem to have the strongest understanding of how their teams are leveraging data, and have the best line of sight into how consumer behavior data supports better decisions. Data analysts and scientists report using 4.6 insights from location intelligence on average (vs. 4.0 on average for data leaders overall). They are also more likely to work in organizations with a Chief Data / Digital / Information / Innovation / Technology Officer or similar role whose focus it is to get departments working better with data (74% agree vs. 66% of data leaders overall).
Data Analysts & Scientists Are More Concerned About Privacy, Security & Quality
As consumer behavior continues to evolve, data scientists and analysts must also stay ahead of the curve. Analytical tools and techniques must be constantly fine-tuned to keep up with new data sources, privacy regulations, and ethical considerations. Accordingly, data scientists and analysts are significantly more likely to say they’re extremely or very concerned about data security and breaches, adherence to privacy regulations, poor or unreliable data quality, and data going stale compared to data leaders overall.
Concerns of Data Leaders % indicating Extremely / very Concerned
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Navigating the New World of Consumer Behavior
Consumer behavior data is a game-changer, and data scientists and analysts are at the forefront of shaping a future where businesses thrive by understanding and adapting to the dynamic needs of their customers. Looking ahead, data analysts and scientists are planning to use more consumer behavior data in the coming year, and have some exciting plans to make the most of it:
49% Plan to use data to support additional use cases
49% Plan to do more to integrate siloed data across departments
44%Plan to get more teams involved in using data for decision-making
Armed with the insights from consumer behavior data, businesses can tailor their strategies and operational decisions to resonate with their customer base around areas including:
Optimizing store formatting & merchandising
Gaining insight into competitor performance
Selecting the best sites for new stores / locations
Improving efficiency around inventory planning
Gone are the days when companies relied on experience or conventional market research to understand their consumers. Today’s consumers are more discerning and demanding than ever before, expecting personalized experiences and tailored solutions. As businesses pivot to adopt a customer-centric approach, harnessing the power of consumer behavior data has become an absolute necessity, and data scientists and analysts are the alchemists of our time, turning data into gold.