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Consumers produce a vast amount of data about their behaviors, preferences and experiences that businesses can analyze to improve their products and services to meet the demands of their customers. The right analytics tool is crucial to reaching business goals such as greater engagement, more sales, and more efficient operations.

To choose a tool, first determine the type of data you’d like to integrate and how to do it. Some tools are designed for traditional enterprise reporting while others are designed to assist you do advanced mathematical analyses or track sensitive data such as health data. It is also important to think about what analytics tools you’re looking at can be integrated into your existing workflow systems and data architecture.

Certain tools are specifically designed for experienced users and data scientists, whereas others let non-technical users perform analysis with a point-and-click interface. Be aware of the capabilities and features of each tool, especially those related to visualization of data. Some are designed to facilitate the creation of visual charts while others rely on SQL or other tools click from third parties to model your data before you can analyze it.

After you’ve narrowed your options, pay attention to the cost and whether the platform is cloud-based or based on software licenses and subscription fees. Some tools are free, while others require an upfront investment as well as ongoing maintenance costs. Make sure you compare these costs with the potential ROI from the insights and efficiency gained using the analytics tool.

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