Descriptive Analytics is the most basic section of Business Intelligence(BI)
that does exactly what the term “Descriptive” suggest to “describe” or
examining the raw data and make it something that is understood by humans.
Descriptive Analytics is an initial stage of data processing that provides historical insights to yield
useful information and prepare the data for the further analysis process. Descriptive Analytics or
statistics makes use of data aggregation and data mining to produce insights and answer the
question “What happened?” They are the type of analytics that describes the
past. The past refers to any point of time when an event has occurred, whether the event is one minute
ago, or a year ago. Descriptive statistics are useful as they allow us to learn from past behaviours, and
interpret how they might influence the future outcomes or events. Common examples include advertising or
promotion, Return on Investment (ROI) measures, customer journey analysis, and customer satisfaction
analysis.
Examples of descriptive analytics are reports that yield useful historical insights
regarding:
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