Descriptive analytics is a branch of business analytics that focuses on analyzing historical data to gain insights into trends, patterns, and relationships. It involves using statistical and quantitative methods to summarize and describe data, in order to understand what has happened in the past and identify areas for improvement.
Descriptive analytics is often used to provide a summary of data, such as mean, median, and mode values, standard deviation, frequency distribution, and other descriptive statistics. It also involves using data visualization techniques such as charts, graphs, and tables to communicate insights and trends in the data.
Descriptive analytics is commonly used in business to gain insights into customer behavior, market trends, and operational performance. For example, a business might use descriptive analytics to analyze customer purchase history and identify the most popular products or services. They might also use it to track inventory levels and identify areas where stock is running low.
Overall, descriptive analytics is a valuable tool for gaining insights into past performance, understanding trends and patterns, and identifying areas for improvement in business operations. By analyzing and interpreting historical data, businesses can make data-driven decisions to optimize their operations and improve their performance.