Having good analytics data is vital to your business. When it comes to a company’s success you might look at customer base, sales figures and the bottom line to determine how well it is doing. However, the picture they show you is an incomplete one as they don’t explain who is buying your product, how or why you might lose those customers and what you need to do to stay competitive in your market.
This is where data becomes so important. Data analytics can help you reshape your interactions with your customers, market your products more effectively and help drive more sales for your company.
Let’s look at this in a little more detail, what does this data really tell you about business?
Segmentation | Finding out exactly who your customers are
Segmentation involves dividing up customer data into relating categories such as age, location shopping habits or product usage. By collecting this data, you can resonate messages with each individual segment, tailoring your marketing to appeal to their specific needs and interests.
Segmentation allows you to understand which categories are most profitable for your business, enabling you to identify the most valuable customer segments and avoid wasting time on unlikely yield conversions. In the long-run, understanding which customers to focus on and invest in is crucial to maximising your profit.
Product development
To stay competitive your product or service needs to be tailored to your customer. Gathering data from surveys or using A/B testing can help determine what works and what doesn’t. This customer feedback can help set you part from your competitors. A great example of this is how companies such as Netflix and Amazon use analytics to understand the winning ingredients of their most popular tv shows, which they then use to inform their future choice of shows to maximise their chance of success.
Encourages business agility
It is so important in fast moving markets to keep your business agile. Acquiring new customers is becoming increasingly difficult and a lot of companies are channelling their resources into getting new customers. This is not an easy task. Successful customer retention means you have to adapt to your customers’ changing needs, anticipate their problems, offer solutions and then adjust your strategy quickly to stay ahead of your competition.
Disruption and Innovation
Business owners’ who obsess over data and use data analysis have been successful in disrupting entire sectors and established industries. Notable examples of this include Uber and Airbnb where their business strategies focus on using smart use of AI, bots and apps as central pillars of their business delivery. Data will be key to market domination in this new disrupted world.
Turning data insights into action
Whatever your industry, data analytics can help you understand your customer and predict their future behaviour patterns enabling you to make the necessary changes or improvements within your business. It can help you to understand why customers leave and you can then focus on retargeting campaigns for those customers most at risk of leaving.
More companies than ever are striving to be data-centric. Insights are only powerful when they support change. Using the information gathered from data analytics can help you inspire meaningful action within your business.
Being able to cover all of these areas is something we have previously discussed in (benefits of implementing a data strategy) – link) to ensure you have all of the right components in place. This is a key element in becoming a customer-centric business.
Data analytics helps you to ensure you’re effectively targeting your customers, both old and new – maximising your marketing impact. This data also allows you to be able to improve the product or service you provide and can help you to direct investment towards promoting bran advocacy and long-term growth.
Even the smallest changes to your strategy or methods of working can bring benefits to your customers, employees and the bottom line. If you’d like to go through what data can tell you about your business, get in touch with us today and we would happy to help you invest in your business’ future and create sustainable long-term future growth.