Are You Using Your Customer Analytics to Drive Your Business?
Here Is What More You Can Do
Customer analytics is an integral part of your business’s operational and marketing strategies. The insights you gather from customers can be incredibly beneficial and help you grow your business.
According to research cited by McKinsey, organizations that leverage customer behavior data to generate behavioral insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin.
With the wealth of data you accumulate in your day-to-day operations, it’s essential to have a clear strategy for collecting, sorting, filtering, and analyzing your customers’ data for your specific goals.
You can use this data to refine your business processes, improve the customer journey and engage in predictive analytics, but only if you identify the specific data needed for those purposes.
Being clear about exactly what data is helpful to you and efficiently collecting only that data will support you in getting insights and actions from your data, rather than simply collecting it.
Here’s what you need to know about collecting the most valuable customer data, analyzing it, and implementing it effectively in your business.
Know your customers.
- Mapping your customers’ journey helps you determine who they are, where they prefer to buy from, their preferred mode of purchase, and how they communicate.
- Once you know who your customers are, you can build your strategy.
- When you know your customers’ preferences, you’ll better understand how to proceed.
- It’s much cheaper to keep an existing customer than it is to earn a new one.
- It can be five times more expensive to attract a new customer than to keep an existing one.
- Stay best friends with your loyal customers, as they are treasured.
- Once you know why your happy customers stay and why some leave, you can take suitable measures to keep the right customers.
Collect the correct data.
- Collecting data requires gathering data from website visits, ad clicks, and other interactions and delivering it in a usable format.
- Integrate both structured and unstructured data from online and offline sources and internal and external sources into usable formats.
- Ensure data quality, so your results are accurate.
- Make sure it’s accessible and easy to retrieve.
- Invest in tools for making sense of the data and providing insights.
Focus on profitable customers.
- Consider that usually, there are no considerable customer acquisition costs associated with selling a new product or service to your existing customer base.
- Take a close look at your customers and identify priority customers.
- Recognize customers that generate the most profit, not necessarily the most revenue. What can you offer them to incent them to pay earlier?
- Discover your worst payers and develop a strategy on how to improve your outstanding days.
- Decide which customers are worth keeping.
Gain insights into growth.
- By combining your data with information about your current customers’ demographics, you can gain insights into the customers most likely to be interested in your brand, content, or products.
- Demographic information includes customers’ ages, genders, income, marital status, and other characteristics.
- You can then use this information to predict the behaviors of various types of potential customers/clients and target your ads and content more effectively.
- Data analytics eliminates much of the guesswork from:
- Planning marketing campaigns;
- Choosing what content to create; and
- Developing products.
- Utilize this information to adjust your targeting criteria.
- Apply your customer data to develop personalized.
Define your desired outcomes.
- Before you start collecting data, it’s essential to know what your goals are.
- What sales problems are you trying to solve? These objectives will define your analysis process and turn the data you collect into actionable insights.
Collect relevant data.
- Strategize with your team on which data to collect and how to produce and process it. Whether you gather it from email surveys, online forms, helpdesk tickets, in-store visits, website browsing, or blog comments, synthesize it and organize it all together in a single dashboard to look at the data patterns holistically.
Prioritize data security.
- Your business is responsible for ensuring your customers’ data is safe and only used inappropriate ways.
- Make data security a priority; it can open you and your customers up to fraud and identity theft. A data breach will damage your reputation and your customers’ trust in you, negatively reflecting your profits.
Improve customer service.
- Data analytics provide you with more insights into your customers, allowing you to tailor customer service to:
- Their need,
- Provide more personalization; and
- Build stronger relationships with them.
- Your data can reveal information about your customers’ communications preferences, interests, concerns, and more.
Re-evaluate operations processes.
- Data analytics can help you streamline your processes, save money and boost your bottom line.
- When you better understand what your customer wants, you waste less time creating ads and content that don’t match your client’s interests.
In addition to reducing your costs, analytics can boost your revenue through increased conversions, ad revenue, or subscriptions.
Your customer data is crucial for growth and revenue as you are fighting tooth and nail to differentiate yourself in an innovative, hyper-competitive world.
With the correct data and analytics strategy and the right approach to customer relationship management, raw data can be easily understood and shared.
Keeping existing customers allows for more sustainable growth. Says Bain & Company, increasing customer retention rates by 5% can increase profits by anywhere from 25% to 95%.
Retaining existing customers make the most business sense but doing so isn’t quite that simple. Find your competitive advantage is through customer retention analytics.
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