Due to the advancement of technology, information can be obtained and aggregated at an unprecedented rate. This presents a greater opportunity for businesses to benefit from the daily data volumes they collect.
They obtain data from multiple sources, from traffic reports to customer demand. Using just a few sources might lead to incomplete data, collection errors, and data analysis mistakes.
Through data aggregation, storing and retrieving data has become easier than ever. Unlike traditional marketing and sales strategies, data aggregation doesn’t require a considerable upfront investment.
This article will feature data aggregation, its types, and how this benefits businesses.
What is data aggregation?
Simply put, data aggregation is obtaining and organizing disparate data to create a holistic and unified database and gain valuable insights for organizations.
Aggregating data and analytics has become increasingly important as businesses seek new ways to enhance customer experience.
According to MicroStrategy’s report, 60% of businesses use data and analytics to enhance their processes and save on costs.
Many firms leverage data solutions for their operations and can use analytics tools to collect and analyze large amounts of customer data.
In addition, data aggregation can also help organizations identify potential new markets and improve customer support processes. They can better use their resources by analyzing customer needs across multiple industries.
The following are the steps involved in the data aggregation process:
- Data collection. It involves collecting multiple data formats from various sources.
- Data processing. The data collected need to be processed to become usable by the business.
- Data analysis. The processed data has been organized into a usable format and needs to be analyzed to help make better business decisions going forward.
- Data visualization. Businesses can view data through visualizations such as charts and graphs, which helps them see patterns more easily.
Types of data aggregation
There are several ways to aggregate data, each with advantages and drawbacks. The following include:
Time aggregation
Time aggregation refers to combining time-series data to gain insights into trends and patterns over time.
For instance, you might want to know how many users visited your website on a particular day, but this information may be scattered across different databases or logs. With time aggregation, you can combine all that data into one place, so it’s easier to analyze and understand.
Spatial aggregation
This combines spatial datasets, such as maps or satellite images, to gain insight into trends across a specific area or region.
For example, running multiple retail locations across the country or overseas could help you manage inventory across multiple stores more quickly and efficiently.
Spatial aggregation lets you get a bigger picture of what’s happening in specific areas where you operate the business.
Manual and automated data aggregation
Manual data aggregation involves combining data from various sources manually. Automated data aggregation, on the other hand, uses software that collects, organizes, and analyzes data simultaneously.
The manual aggregation offers flexibility and control over the process but is also very time-consuming and inefficient.
Meanwhile, automated data aggregation allows you to scale your operations without adding too much overhead, but it comes with limitations (e.g., lack of human oversight).
How data aggregation helps businesses
There are many advantages of data aggregation for businesses. Some of these are:
Enhances data analysis
Instead of sifting through multiple sources separately, you can view everything together in one place. This makes it easier to spot trends and patterns that might otherwise have been missed.
According to Markets and Market’s latest report, the predictive analytics sector is expected to grow to a valuation of $28 billion by 2026.
Data analysis utilize insights derived from aggregated data to improve your business process efficiency and effectiveness.
You can use this information to identify areas where there are bottlenecks or wastage so that your team can work on rectifying them quickly. You can also make decisions based on real-time data trends instead of relying on historical trends alone, which could be misleading if not analyzed properly.
This enables better decision-making at all organizational levels by providing actionable insights into key areas such as sales performance and employee productivity.
Boost efficiency and data quality
Businesses that are heavy on data use it to analyze their customer base, sales performance, and other key metrics.
Data aggregation lets accessing information across different systems easier, making reporting more accurate and timely. It also enables firms to get more value from their existing data while protecting it from possible breaches or security issues.
Minimize risks
More and more businesses are exposed to many risks and threats daily. But with accurate and timely information, you can minimize risks by predicting potential issues.
Through data aggregation, companies can make better business decisions to help them grow while minimizing losses due to unforeseen circumstances like fraud or cybercrimes.
Improves sales
Instead of going through different datasets, you’ll have everything in one place with the help of data aggregation.
You can create more effective marketing campaigns to boost sales without wasting money and time on campaigns that don’t work well with your customers.
Better decision-making
Businesses need reliable market information to make sound decisions about their operations and future growth plans.
Without adequate information, it becomes difficult for them to plan effectively or understand the current situation well enough for effective decision-making processes.
Data aggregation ensures that all necessary information is always available so businesses can make informed choices.
Achieve the best results through a data aggregation solution
Today, data is crucial in making business decisions, setting strategies, and measuring success. But as much as firms rely on data, most are still working with a fragmented view of it.
Regardless of the rise of big data, it often sits in silos, making it difficult for businesses to access and use it effectively.
With data aggregation solutions, companies can overcome these challenges by providing a comprehensive view across data sources. It helps identify trends and improve the organization’s customer experience and overall business ROI.
