In this post, we’ll explain what data aggregation is, give an example of data aggregation, and provide use cases for the finance, retail, and travel industries. We’ll also tell you how organizations can use web data tools as a more efficient solution.
What is data aggregation?
Data aggregation is the process of gathering data and presenting it in a summarized format. The data may be gathered from multiple data sources with the intent of combining these data sources into a summary for data analysis. This is a crucial step, since the accuracy of insights from data analysis depends heavily on the amount and quality of data used. It is important to gather high-quality accurate data and a large enough amount to create relevant results. Data aggregation is useful for everything from finance or business strategy decisions to product, pricing, operations, and marketing strategies.
What is an example of aggregate data?
Here is an example of aggregate data in business:
Companies often collect data on their online customers and website visitors. The aggregate data would include statistics on customer demographic and behavior metrics, such as average age or number of transactions. This aggregated data can be used by the marketing team to personalize messaging, offers, and more in the user’s digital experience with the brand. It can also be used by the product team to learn which products are successful and which are not. And furthermore, the data can also be used by company executives and finance teams to help them choose how to allocate budget towards marketing or product development strategies.
What is data aggregation in the financial and investing sectors?
Finance and investment firms are increasingly basing their recommendations on alternative data. A large portion of that data comes from the news, since investors need to stay up-to-date on industry and company financial trends. So, financial firms can use data aggregation to gather headlines and article copy and use that data for predictive analytics, to find trends, events, and shifting views that could affect the finances of the companies and products they are tracking.
This market information is available on news websites for free, but it is spread across hundreds of websites. Combing through each individual website manually is time-consuming and may produce unreliable datasets due to missing data. We’ll talk more about how financial and investment firms can speed up the process in this use case at the end of this post.
What is data aggregation in the retail industry?
The retail and ecommerce industries have many possible uses for data aggregation. One is competitive price monitoring. Competitive research is necessary to be successful in the ecommerce and retail space. Companies have to know what they’re up against. So, they must always be gathering new information about their competitors’ product offerings, promotions, and prices. This data can be pulled from competitor’s websites or from other sites their products are listed on. In order to get accurate information, the data needs to be aggregated from every single relevant source. That’s a tall order for manual web data analysis.
Another way retail and ecommerce companies use data aggregation is to gather images and product descriptions to use on their site. These often come from manufacturers, and it is much easier to reuse the already-existing images and descriptions from them than to craft your own. Manually gathering product listings or competitor prices is time consuming and makes it almost impossible to make sure it is constantly up-to-date. After we take a look at the travel industry, we’ll tell you how retail and ecommerce companies can aggregate and combine data more efficiently.
What is data aggregation in the travel industry?
Data aggregation can be used for a wide range of purposes in the travel industry. These include competitive price monitoring, competitor research, gaining market intelligence, customer sentiment analysis, and capturing images and descriptions for the services on their online travel sites. Competition in the online travel industry is fierce, so data aggregation or the lack thereof can make or break a travel company.
Travel companies need to keep up with the ever-changing travel costs and property availability. They also need to know which destinations are trending and which audiences they should target with their travel offers. The data needed to gain these insights is spread across many places on the internet, making it difficult to gather manually. That’s where our data extraction and aggregation service, Web Data Integration, comes in.
Data Aggregation with Web Data Integration
Web Data Integration (WDI) is a solution to the time-consuming nature of web data mining. WDI can extract data from any website your organization needs to reach. Applied to the use cases previously discussed or to any field, Web Data Integration can cut the time it takes to aggregate data down to minutes and increase accuracy by eradicating human error in the data aggregation process. This allows companies to get the data they need, when they need it, from wherever they need it. All with built-in quality control to ensure accuracy.
WDI not only extracts and aggregates the data you need, it also prepares and cleans the data and delivers it in a consumable format for integration, discovery and analysis. So, if your company needs accurate, up-to-date data from the web, Web Data Integration is right for you.
Contact a data expert today to discuss how Web Data Integration can fit into your organization’s workflow.