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What are its Advantages and When to Use Data Aggregation?

Data Aggregation

Data Aggregation is any process in which information is collected and expressed in summary form for purposes such as statistical analysis. 

A very common purpose is to obtain more information on particular groups of people based on specific variables, such as age, profession, or income. Information about these groups can be used to personalize websites by selecting content and advertising that may appeal to members of one or more of the categories for which data has been collected.

User-based personal data aggregation services provide a single point for the collection of user personal information from different websites. This is known as “screen scraping”, which consists of automatically obtaining the information that the user shares on different websites, extracting it to form and enrich the database itself. Screen scraping, for example, allows a user to log in to multiple accounts on different websites with a single personal identification number (PIN).

Aggregate Data APIs are paths to collections of information from different sources or origins. Through this sum of data, often offered anonymously, researchers, developers, and entrepreneurs can access statistics and knowledge that individual data does not offer. This can have a number of important advantages to take into account:

Advantage of data aggregation

Below is Advantage of data aggregation

  1. Faster and lower costs

Data aggregation platform of Perfios makes the process faster and decreases the processing cost.

The conclusion of the study was that the aggregated data is used to obtain a similar meta-analysis at a much lower cost, that is: to analyze large amounts of data, using aggregated data APIs is faster and cheaper while achieving results Similar.

  1. Anonymization

Another great advantage is the access to data that individually would be impossible to obtain due to legal privacy protections since it could identify the participants. When this data is aggregated and offered through an API, in addition to the fact that the data does not contain personal identification, it intermingles with each other, and the individual elements that can misrepresent the being of data disappear.

In this way, the trend is much clearer and more precise on a global level when working with aggregated data, and the elements that can distort the results are isolated.

  1. Know the global trends

When thousands, hundreds of thousands, or millions of rows are added to a data set, trends, segmentation, and historical assessments begin to appear that can be key to better understanding the market for your business and your customers.

Most governments or government agencies offer this type of data in the form of aggregated statistics, although perhaps not in the form of an API – although some also – but without a doubt, it is a bet for a developer to build one that works on this data to improve your business.

Being able to observe the data from a holistic point of view will give you the ability to have a better perspective of your customers: their needs, their actions, and their patterns. You can anticipate changes and anticipate trends. In this way, you can apply changes preventively or plan for events before they occur.

  1. The option to perform detailed analyzes 

Behavior patterns are especially useful for any business. Not only had those related to economic data such as the credit or debt statistics of a population, which can give you an idea of​future shopping behavior.

In this sense, analyzing the data in an aggregate way through API represents a good way to provide feedback and compare with individual results: see why a customer has paid much less than the average and how to get them to buy more things in the future, analyze why a particular store has more sales compared to others in its immediate environment or observe how customers respond to changes in the price of products over time.

When you need Data Aggregation software

In recent years, companies in all industries have shown great concern for acquiring the right technology to solve their impact data management problems. 

Platforms such as Salesforce and Software as a Service ( SaaS ) technology have expanded their capabilities for collecting financial and impact data. However, in order to make sense of all the collected data and use it for strategic decisions, you need to add it first.

Could your business benefit from Data Aggregation?

There are some clear signs that the organization needs software of this type. They are the following:

  • Use of Excel: when data collection takes place using this medium, it can be assumed that, although there is information from various sources, it is very likely that the data is not ready for use. The time you are spending reviewing, cleaning, and standardizing is just the beginning, as you also need to apply formulas and create pivot tables and charts to see aggregated results that are easier to understand. Too much time and resources devoted to something that could be accomplished much more easily with a data aggregation
  • Need to acquire a global vision. When you need to evaluate the impact of an initiative, the first thing you need is to visualize the aggregated results over time to see if they are improving or not. Collecting the information, aggregating it by year and creating a line chart to observe the trend is a process that, if done manually, can be lengthy and prone to errors.
  • Need to share the vision with stakeholders. Often, business users are not clear about the results of the analysis. Raw data is very difficult to understand, and you need a dashboard that uses summary charts, graphs, and other visual aids to present the highlights of your organization’s results. To be effective and easy to understand, you must present aggregate data.


So data aggregation is a process, which helps to manage data at a low cost and in a small interval of time.

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