“Data by itself is useless. Data is only useful if you apply it.” Todd Park
We live in a world driven by data. Analytics, statistics, and numbers – it is a channelized interplay of all this that we are able to see the things placed in a way they are around us.
Don’t believe it?
Well, why do they place the items in the way they are placed in a grocery store?
Simply because they have studied and found a particular pattern that attracts maximum attention. Hence they have kept it like that. Same goes with the advertisements we see on our social media. It is because of the data or the so called cookies that these systems use, because of which we see those ads floating around on our computer screen.
And, that’s just the tip of the iceberg. In this post, we are going to discuss the countless ways in which business can utilize data analytics to create a better experience and ultimately improve their sales. So, let us begin…
1. Find the right direction
As a business, you want to generate as much traffic for your website as possible so that you can convert them. For this, you employ countless strategies – social media marketing, search engine optimization, paid marketing and what not.
What works and what not?
Only data can help you figure this out.
With the power of data analytics, you can eventually get to know about the methods that are driving the best numbers to your website.
Once you have those numbers you can easily focus on putting more efforts in that direction, rather than continuing with the hit and trial streak.
2. Targeted marketing
Your efforts are going waste unless you know your target. It is data that helps your product to targets.
Suppose you have project management software for teams. And, you intend to sell it in the market.
Which audience should you target? This becomes the big question. By running a pilot study, gathering the data and then studying the results of this test can help you get a clear picture of your most effective audience.
So, you can plan the marketing efforts targeting that particular audience and kill it out there in the market!
That’s how powerful data analytics is when it comes to driving sales!
3. Predictive analysis
Your ultimate target is to reach the customers and sell your product. But, when should you reach them?
What are the best methods and the best time to get in touch with them? This is something that can be achieved with data-driven predictive analysis.
If you have a business that has been running for long, gathering past data to study the customer behavior and understanding the results of interaction with them in the past can be used to predict customer behavior.
Based on these predictions you can eventually be more specific in your efforts and hit the bull’s eye with every marketing campaign to ultimately get more conversions!
4. Drive down costs
As combined results of all the factors mentioned above, you can be certain of one thing – running more efficient marketing campaigns.
What this means is that you can be more specific when dealing with customers, create campaigns that are more targeted and hence require less effort to create and implement.
Now the ultimate result of all this would be – low costs and better ROI.
And, this is the ultimate goal of every business. Isn’t it?
Bringing down the expenses and getting the maximum out of the investment you are putting in is what creates a successful business. With the help of data analytics, you can easily achieve this goal without facing any trouble.
5. Build better products
A business must continue to evolve in order to remain a thriving force in the industry. But, how does a business evolve?
The answer is by constantly building new products, better services and what not.
Now, this is where again data analytics can play a big role.
Data analytics can help you understand the market trends. What are the customers drifting towards? What are they attracted to in the current market scenario? And, what’s the future going to be?
Answers to all these questions lies in numbers – the numbers that you can only with the help of data analytics.
Once you have those numbers and find the answer to these questions, you can simply go ahead and head towards developing a product that has already a high chance of succeeding in the market. So, you are in a win-win situation!
6. Better MRR
For those of you who are not into sales, 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.
With the power of data by your side, you can easily study the 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. As the numbers suggest, it costs five times more money to acquire a new customer than retaining one.
And, data analytics can help you figure out ways to keep that returning customer number high.
Remember those words by Mark Twain, “Data is like garbage. You’d better know what you are going to do with it before you collect it.”
And, today’s businesses have found the hidden power of data. They know what they are going to do with it; therefore they are investing such huge sums in data and predictive analytics.
If you too want to take your business to newer heights of success, it is high time you find the right source for gathering data and then invest in analytics.
The future lies in numbers and predictive analysis. And, you would not want your business to be left behind in the market just because you did not want to invest in gathering those numbers. Would you?
So, what are you waiting for? Plan your way out, and see what strategy you need to implement in order to get the most out of data analytics for your business.