4 Types of Dimensions in a Data Warehouse

A data warehouse has the ability to keep your business’s data in an organized setting. It can be used for all kinds of different scenarios such as retrieving and analysis. Of course, data has become a pivotal element in making the best business decisions driven by the numbers. However, understanding the types of dimensions that exist in data warehouses may be crucial to your business needs. 

In this guide, we will go over the x types of dimensions in a data warehouse. Each will have their own unique purposes. All of which will be vital to the entire storage and analysis process. Let’s dig right in and get started.

1. Time dimension

If you want data to organize itself in terms of certain time periods, this dimension will be critical. Especially when it can categorize it based on the days, weeks, and years. It can even be organized on a quarterly basis. What makes this dimension important is that it can help with analyzing trends and detecting seasonal periods (especially in the retail business).

It will also be used to analyze the data during certain time periods. The objective of course is looking for patterns and creating forecasts. This way, it will prepare your business to make the most crucial decisions that are precise and as error-free as possible.

Analyzing the time dimension will help determine the kind of consumer behavior that may exist. At the same time, it will also help with inventory management strategies that you want to play around with.

2. Product dimension

In this dimension, the data will focus on products or services your business offers. Depending on the industry, the attributes included in this dimension will include but may not be limited to the following: product name, brand, category, size, price, etc. As such, using the data based on these attributes will help determine which products are being sold from most to least.

Data based on product dimensions can determine the future of certain products or services going forward. Businesses may face decisions regarding which of these can be continued and which ones can be “retired” due to low sales. In addition to performance analysis, this is another dimension that will also play a crucial role in inventory management. It can also be used for cross-selling or upselling strategies as well to generate more sales.

Businesses can use the data for future marketing opportunities in order to accomplish this. This kind of data will be worth looking at regarding the type of products or services you can offer now and in the future.

3. Customer dimension

Here’s where the data gets more interesting. This dimension focuses on the name, address, contact information, demographics, and the purchase history of a customer. It’s a dimension that will help put customers in the right segmentation as well as determining their estimated customer lifetime value. In addition, this dimension can provide itself useful in identifying who the high-value customers are.

From a marketing standpoint, you can also play with different marketing messages. It’s also important to make sure that it aims at the right segments. For example, you may be offering exclusive deals to existing customers. So it would make a ton of sense to direct the message at them instead of new leads who have never bought from you yet.

It also gives you a good idea of who your real demographic is. Thus, it will help you adjust your strategy a bit in terms of who your ads are targeting (i.e - social media). If you are planning on using Facebook ads (for example), you can use customer dimensions to help refine your ad strategy by targeting which demographic has brought in the most sales. It may be a good way to double down on your success while testing out whether or not you’ve hit a “gold mine” of sorts with a certain customer base.

4. Location dimension

Geographical attributes will more or less play a role in the eCommerce businesses. Obviously this is due to the fact you are selling to customers almost anywhere around the world. Nonetheless, this dimension can help you make businesses based on location. What makes it vital is that it can help with supply chain optimization.

Customers love it when the things they order online can be delivered in a timely manner. The logistics can play a role in when it arrives on their doorstep. Businesses could also use this type of data to determine where to purchase property for a fulfillment center. Especially if they are serious about customer satisfaction and making sure every order is delivered just in time.

Yes, location can play a role in terms of marketing. Once again, we take a look at social media ads and how you can set them to display in front of users in a specific geographical area. However, this location dimension can also apply to brick and mortar businesses as well.

They can use the location dimension to use ads that can be displayed within a specific mile radius of your business. If you notice more customers in a specific local area, you can target your ads for residents of that city or town. The closer they are to your business location, the better. 

Nonetheless, location dimension can be useful in making the most critical decisions for any business. After all, providing customers with the products or services they want in a timely manner - be it the same day or next day - can really make a difference in their overall experience.

Data is everything in business. Let Oamii Tech make it simple

Oamii Tech knows that data is what helps create the best decisions for a business. Whether it’s focusing on a new marketing message or determining which product is selling the best, dimensions in data warehouses can be a huge help. If you are planning on using a data warehouse, Oamii Tech can help you understand the basics and then some.

Need more information? Contact us today and we’ll point you in the right direction.