Data analytics and its different terms can be confusing, especially for beginners. Here's a beginners guide to explain the the 4 main types of data analytics:
Descriptive Analytics (What Happened?)
Let's say you work at an online shop that sells games. As part of your job scope, you create and present a report summarising the sales for Quarter 1 (i.e. January, February and March).
Sound familiar? Most, if not all of us would have done this at some point in time, but did you know that what you just did was descriptive analytics?
Descriptive analytics is the use of data to identify patterns and trends. As one of the simplest forms of data analytics, descriptive analytics is one of the most popular, and is well-used across all functions and industries.
Diagnostic Analytics (Why Did This Happen?)
While creating your report, you visualise your data using charts and graphs and notice that even though there was no change in your sales and marketing strategy, sales in March was much higher than in January and February.
You want to know why, so you go through your data again and notice that sales significantly increase in the months of March, June, September, November and December.