Many businesses and government organizations are starting to better understand the power that data analytics can provide. This will likely continue into the future, with many new advances expected in 2021. Let’s look at some of the ways this field could evolve over the coming year.
Causal Inference Will Become More Common
One of the biggest trends is identifying why certain behaviors occurred. In this area, more people are choosing to use casual inference. This can give you a better idea of what types of factors can make people act in a particular way. Often, this is done by looking at the conditions in which the situation occurred. To illustrate, imagine a company wanted to find out why someone chooses to purchase a particular product. Using casual inference, they might determine that they were influenced by things like financial pressure, the time of day, and brand loyalty. This can give the company a better indication of the type of customers their products appeal to, and some of the reasons why that sale occurred.
AI Will Perform More Advanced Sentiment Analysis
Artificial Intelligence (AI) has had a big influence on the data analysis field, making it easier to analyze complex data. In 2021, you might start to see more sentiment analysis capabilities. This means that they will be able to detect speech patterns and discover what emotion that person might have been feeling. This could be used in a range of ways. For example, a company might use it to monitor social media communications, alerting them quickly if there is a problem. By intervening early, they will be able to take control of the situation. Alternatively, governments might use this to gauge public reaction to certain topics.
Better Predictions
Large amounts of data are being collected by organizations, with the intention of better understanding customers. In 2021, you can expect more advances in the way that this data is used to predict behaviors. For example, businesses might be able to use historical data to understand what their customers are looking for when shopping. This will allow them to predict which customers will purchase which products. There are multiple ways that this can be used. For example, organizations can create a more targeted ad campaign. Alternatively, they might be able to better spot potential issues when designing products, allowing them to be corrected quickly.
Stronger Data Protection Laws
While technology tends to evolve very quickly, it can take a little longer for governments to react to these changes. However, in 2021, as concern over data privacy grows, it’s expected that more governments will become seek to introduce stronger protections. This might limit the type of information that can be gathered and how it must be stored. To ensure compliance, it’s likely that companies will take a more localized approach to data collection.
The data analytics field is set for a lot of exciting innovations in the years ahead. So, make sure that you are prepared to capitalize on these trends in 2021.
Current CMO at Creative Recreational Systems, Austin Stanfel is Commercial Recreation Equipment Importer and CEO of Stanfel Media