Data Aggregation and How It Is Useful?


In order to execute their jobs, the retail business, manufacturers, and marketers all want useful data. Products must improve, services must evolve, and the goal must always be to increase the number of users.

You don’t have time to speak with each of your potential customers one-on-one. To learn from unfavorable encounters, you’ll need a more efficient approach of collecting opinions, feedback, and unpleasant experiences. This is accomplished by data aggregation, and firms frequently use data aggregation technologies to maximize the efficiency of this aggregation. Given that this all seems a little hazy, we’ll delve a little deeper into data aggregation, explaining what it is and how it may help.

What is Data Aggregation

The process of bringing or collecting data from numerous sources and summarizing it in a uniform manner is data aggregation. It’s a crucial phase that comes before data or statistical analysis. After the data has been examined, it can generate actionable business intelligence or to assist in decision-making.

The types of sources used vary based on the goals of data aggregation. In a perfect world, you would collect business data from numerous sources and compare their performance. You’ll also need to purify the data and extract only relevant datasets if you want to target a specific demographic.

Process of Data Aggregation

As noted, organizations that need to gather market information frequently rely on tools of software for aggregation data operations. These devices usually carry out three essential functions:

  • Data extraction – targeting or isolating relevant data from aggregated data in a way that corresponds to the company’s needs.
  • Transformation – transforming or adjusting the data so that it corresponds to the prescribed template or format for data analysis.
  • Data analysis and visualization – creating a summary form or a visual representation of analyzed data and KPIs that can be useful for business intelligence.

data aggregation and visualisation


Given how you may monitor activity on numerous channels and aggregate data from those channels, data aggregation technologies like Whatagraph can play a critical role in streamlining these processes. Other features include data extraction, as well as the ability to alter and format the data before displaying it in a tidy report.

Automated vs. Manual Data Aggregation

Data aggregation can be time-consuming, especially if you’re running a small business. A start-up company rarely invests in data aggregation technologies straight first, for a variety of reasons, one of which is that they are still determining what type of data is relevant to their line of business.

Regardless of whether we’re talking about the retail industry, vacation companies, or news websites, this is a vital process. Keeping track of how your audience or purchasers interact with your content, products, or website are all essential inputs that might lead to useful conclusions.

Data aggregation might take a long time, especially if you’re a small business owner. For a variety of reasons, including the fact that they are still defining what type of data is important to their line of business, a start-up company rarely invests in data aggregation tools straight away.

This is an important step in every sector, whether it’s the retail industry, vacation companies, or news websites. Keeping track of how your audience or customers interact with your content, goods, or website are all important inputs.

Levels of Data Aggregation

There are a few different degrees of data aggregation that we can detect.


This occurs when businesses make data-driven decisions but fail to collect data or see it in the proper context. Examining study results in order to determine which vaccine is the most effective is an example of this. You simply see the results or the quantity of the sample; you don’t see the conditions under which the testing was done, the chance of infection, or anything else. To put it another way, you’re theoretically making an informed decision, but the data you’re using requires more context or other inputs.

This happens all the time when a company is seeking to update its website. They use Google Analytics to track their traffic and bounce rate in order to find out how to increase the number of visits to their website. As a result, they decide to either market more aggressively or provide new services that will encourage visitors to stay longer.

So, while it’s great that someone depends on data before making a new decision.


People decide to establish a dashboard at this point. It’ll give them possibility to make relevant inputs, track data, and observe how their assets are functioning. They can also conduct essential comparisons and possibly discover meaningful correlations between such performances.

Marketers that rely on their in-house dashboard to generate reports and manage their database understand how time-consuming it can be. It also needs to be updated on a regular basis to maintain its worth, which can deplete resources. This is a good sign, though, because it shows that a corporation values data analysis and recognizes how important it can be for business intelligence.


Some companies understand early on that an in-house solution isn’t always the best option. As a result, they choose a third-party vendor with well-developed data management software. This speeds up the entire process and allows you to spend less time creating future in-house capabilities.

When analyzing how clients behave, you can use good data aggregation tools to track many aspects. This can be extremely useful in the travel business. For example, when a certain place is in great demand or when a sudden surge in demand for a particular location. To check if the amount of time spent on the platform varies, you can alter your algorithms or perform A/B split testing. To put it another way, any changes you make can lead to significant gains in knowledge on how to better.

Why is Data Aggregation Useful

Data aggregation can be useful to research society in general, in addition to developing products, functionalities, tracking trends, price monitoring, and studying clients. It can assist us in determining who is more prone to become unwell or how a specific population will react to specific situations.

In other words, legal institutions and policymakers can use data aggregation to better plan how to handle societal problems. Or how to respond in an emergency. Having reliable information about how events in an economic crisis might play out, for example, aids governments in developing contingency plans and measures to help citizens weather the storm. Furthermore, we can improve existing medical therapies and quickly adapt to newly discovered ailments.

The core concept is that small quantities of knowledge can quickly add up, and that by sharing information globally, more lives can be saved. All of this may seem too complicated to comprehend, so let us explain and break down the data aggregation process.

How Data Aggregation Tools Work

Data aggregation tools, often known as data aggregators, collect information from a variety of sources. They also digest new information or data and deliver it in a logical manner. These technologies, on the other hand, can trace data lineage to prevent missing important context, which is useful in some circumstances, especially when dealing with outliers.

The collection is, therefore, the first phase of data aggregation, and it can be extracted from the IoT (internet of things) sources like:

  1. Social media
  2. Browsing experience or history
  3. Call centers
  4. News and podcasts

The next step would be to process the information gathered. This necessitates the scrubbing or transformation of newly created databases or datasets. It’s a method for focusing on certain findings that are useful to market intelligence.

Summaries of all of your findings are required. Because data must be examined and findings must be reliable and relevant, this can take time.

Aggregated vs. Disaggregated Data

Let’s look at what it means to disaggregate data now that we’ve discussed what it means to collect or aggregate data. Because disaggregating data involves breaking it down into smaller but still relevant bits, it’s relatively self-explanatory. If you wish to improve your average scores or values, this can help.

For example, you might combine data to determine a school’s or college’s graduation rate. The data is then disaggregated to see if different ethnicities, races, or genders have varying graduation rates. If you discover something fascinating when researching these new subgroups, you can use it to determine whether your institution’s curriculum needs to be adjusted or if there are other issues.

This is especially useful in marketing, as it allows you to either identify new ways to offer products to specific demographics or double down on your existing clients.

Risks Related to Aggregation Data Processes

Aggregating data also entails obtaining personal information, therefore it’s critical that persons whose data you’re obtaining give you their permission. As you can see, terms of service have changed dramatically over the last decade, and websites now need to be much more clear about what information they collect using cookies. Furthermore, legal difficulties may arise if a security breach occurs or if user data doesn’t have effective protection. As a result, if you’re collecting personal data, be sure you have security procedures in place to protect it.

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X-Soft is an established player in the IT market committed to providing excellent solutions for Web/ Mobile (iOS, Android, Web) around the globe. Namely, we are a team of professional web and mobile developers with 10+ years of experience.

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