Modern businesses need to incorporate data analytics to achieve success. The use of AI and Big Data has become much more prevalent in companies of all shapes and sizes. But according to a study by Forbes, less than half of the businesses are utilizing AI and Big data.
This is major because of the lack of understanding of data sets and poor alignment of resources. In order to see the biggest impact of data utilization on your business’s sales and overall profitability, there are several key approaches that should be followed.
So, let’s dig in:
1. Targeted Marketing
If you haven’t identified your target audience, all your marketing efforts are going in vain. Data analysis can help you in establishing a niche audience. Let’s understand better by taking an example. Suppose you want to sell a software similar to Tableau. If you don’t know which channel is working for you, the results won’t be fruitful. Analyzing data from analytics can help you identify the right channel.
One great example is Oracle. When they developed, the Modern Finance Leader blog series established itself as an industry leader. The blog targets finance executives and provide content designed to educate and inform the audience on the latest trends and topics in finance.
- 330 posts published
- 90,000 unique visits
- 500,000 page views
- 63% increase in web traffic
2. Predictive Analysis
This particular approach is highly beneficial for established businesses. If you have a business that has been running for long, gathering past data is relatively easy. You can use this data to study customer behavior.
Based on these predictions you can eventually be more specific in your efforts and keep getting better with every marketing campaign to ultimately get more conversions.
According to Sprout Social’s report:
- 89% of inquiries from customers on social platforms go ignored
- 73% of consumers have used social media to notify a business about a negative experience
- 30% of them will leave for a competitor if the problem is not resolved
That’s why it’s very important that businesses use predictive data analysis to try and be omnipresent.
3. Better customer journey mapping
The customer journey can be better mapped and predicted which can, in turn, contribute to MRR. MRR stands for monthly recurring revenue. It is basically the number of customers that come back every month to pay for your product or service.
Using data anlytics you can easily study customer behavior, build targeted campaigns, and easily attract those customers who have invested in your business. So, you can easily get recurring customers by targeting your efforts in that direction.
Customer retention & loyalty: When a business properly interacts with a customer to resolve a negative experience, that customer is 70% more likely to buy from them again.
Data analysis can help in gaining customer loyalty and retention. As the numbers suggest, it costs five times more money to acquire a new customer than retaining one. And, Big data analytics in business can help you figure out ways to keep that returning customer number high.
This is done by following certain keywords that are related to your business/offers. In much the same way that Google Alerts notifies you when a specific word is posted online, brand monitoring tools, like Mention and Brandwatch, will send an alert when a social media user shares a post with a relevant keyword or phrase that signals potential for engagement.
Tools like Hotjar and Smartlook can do wonders to better gauge how people interact with your website. This behavioral data can then be used to create better trigger-based marketing strategies that send specific content to a customer at the perfect time.
For instance, if a customer clicks on a specific product page but leaves without a purchase, a reminder email could be sent off within 24 hours notifying them that they left an item in their cart, or they could be re-targeted via a social advertisement. This will help in retaining the customer and compelling them to buy from you again.
4. Lower costs
The marketing team is constantly under pressure to show return on investment. The data to make smarter decisions are available, as are the analytical tools.
Insights from the consumer decision journey and the marketing-mix allocation should inform the tactical media mix. Attribution modeling can be especially helpful with in-process campaign changes since digital spending can be modified on very short notice. Research from Mckinsey shows that the best-performing organizations can reallocate as much as 80 percent of their digital-marketing budget during a campaign.
Instead of wasting your marketing budget on wrong campaigns, data analysis can help you in investing in the right spot thus increasing your sales by many folds. Websites like Monsterinsight allows to get to know your visitors and increase your website traffic and sales when you know exactly how people find and use your website. MonsterInsights shows you the stats that matter.
Data analytics is an important investment for a growing business. By implementing data analytics every business can increase sales, achieve a competitive advantage, reducing the cost of operation and drive customer retention.