We hear so much about data.
Collect data. Analyse data. Capture this. Capture that. Data, data, data.
Before we go into the importance of data, let’s take a step back and look at what it means.
What is data?
Data is information, especially facts or numbers, collected to be examined and considered and used to help decision-making, or information in an electronic form that can be stored and used by a computerCambridge Dictionary
Basically, it is information like facts and numbers that are collected, stored, and then analysed to make decisions.
As a business owner, you probably have some methods of collecting data or information.
You might have an Excel sheet with your customers’ names, phone numbers, and email.
So what are you going to do with all the data you have?
Here are a few things data can do for your business:
1) Generate insights and predictions
2) Establish customer segments
3) Encourage customer growth
4) Build a relationship with customers
5) Make better marketing and advertising decision
6) Generate case studies or testimonials
7) Improve your products and services
At this point, you’re probably thinking “Yeah that sounds awesome, but how do I use data to do all of those things mentioned above?”
Well, let’s dive right into it.
First things first…
Decide on metrics that matter
This is the first step to understanding the data you have.
Pick a few metrics that are important use those metrics to analyse your data.
More often that not, this process can be automated – and it should be.
You don’t want to spend hours or days staring at numbers as it will only stress you out.
For example, if you’re running a restaurant, perhaps you want to know what age group of people are frequenting your restaurant and how much are they spending on average.
Based on these data points, you will be able to make better decisions about marketing and pricing in the future.
Establish customer segments and make use of them
One of the amazing things about data is that you are able to establish segments.
This will help a great deal with your advertisement targeting.
When you target the right group of people, you can keep your cost low while increasing conversions.
If you’re running a niche store that sells pet food, then your audience segment is pretty clear: pet owners.
However, if your store sells clothes, then segmenting will play a bigger role for your business.
Are your customers mostly male or female?
Are they working professionals or party-goers? Or both?
Are they in their early twenties or late thirties? How often do they shop at your store?
How many items do they buy each time? How much do they spend every visit?
All these data points will come in handy to help you send out targeted emails and SMS campaigns.
Targeted and personalised messages usually have a higher conversion rate compared to generic campaigns.
From these campaigns, again, you can analyse what percentage of your customers are opening your emails or text messages so you can decide which channel to invest more time on.
You can either use UTMs or use issue special promo codes so you know which channel is bringing in the customers.
Generate insights and predictions
Based on analysing data according to your preferred metrics and customer segments, you will be able to derive certain predictions about your customer behaviour.
For example, your customers are mostly in their late thirties and spend about $150 dollars on average for every visit.
Based on this information, you can introduce a deal where customers will get free shipping if they spent $180 and above. Or they qualify for a mystery gift.
If your customers are mostly female young adults who are buying black party dresses, then you know what to push out in your next marketing EDM and who to target.
Perhaps you have customers who are mostly married and have kids. Then you may want them to be the first to know when you launch a clothing line for kids.
Use feedback from customers to improve
Data is not only about numbers.
Customer feedback and suggestions are also extremely valuable data for you.
Use the feedback and suggestions to improve the quality of your products and services.
When you offer high quality products and services, customers will be willing to pay a higher price, and thus adding to your revenue.
86% of buyers are willing to pay more for a great customer experience.
People are okay to fork out a few extra bucks so long as it comes with ease and convenience.
That is why some people prefer to valet park instead of driving to the basement and going round and round in circles looking for parking – even though that may be cheaper.
Target high-value customers to boost sales
Another amazing thing that can be derived from data (with the help of a good CRM tool) is identifying your frequent and loyal customers.
Here’s another interesting statistic:
Loyal customers spend 67% more than new onesCMO Adobe
Loyal customers are soooo important for your business.
We all know someone who swears by a particular brand and won’t stop talking about it.
These are your high value customers. They believe in you and they are loyal to you.
They will recommend you to their friends, family members, and strangers on the internet.
So what do you do?
First, you reward them and give them the recognition they deserve.
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty programBond
Second, you can give them special referral discounts for bringing in new customers for you.
Third, since they already believe in you, you can promote new and improved products to them and they will most likely purchase it.
Compile testimonials and broadcast them to generate more sales
Like we mentioned above, feedback and suggestions are also valuable data for your business.
Before people spend money on you, they want to be assured that they will get their money’s worth. Which is why people love going online and reading reviews.
Feedback and testimonials are valuable data for you because:
a) You know what customers love about your products and services – so you can focus on refining that
b) They are assuring other customers that you’re worth spending money on
Collect feedback from your customers (especially your loyal customers) and broadcast them everywhere – Facebook, LinkedIn, emails, brochures and so on.
Want to learn more about how you can use the right CRM tool to crunch data and increase sales? Contact us here.