It can be extremely difficult to find useful ways to extract value from this seemingly endless stream of information when you have more customer data for marketing than you know what to do with. The majority of the world’s data (44 zettabytes, to be exact) have been produced just in the last three years alone, which makes sense given that more and more people are using all types of devices, which are all producing more information.
And that’s due to algorithms and other software that tracks user behavior and produce their own data about it, not just human data creators.
Knowing where to focus your analytical efforts is essential if you want to stay ahead of the competition in marketing as the proliferation of the Internet of Things (IoT) devices is accelerating data generation at warp speed.
How does a company navigate the sea of customer data for marketing purposes and uncover digital insights that can be used to boost productivity, revenue, sales, or other operational elements?
We’ll explain how to you. Here, we’ll examine eight doable strategies for using customer data to your marketing advantage and enhancing your brand’s visibility, standing, and earnings.
#1 Accept the Reality of Big Data
Without further analysis, big data can appear to be a huge, unmanageable mess of random information. When considered in that light, there is a strong temptation to disregard the information in front of you.
But ignoring big data means passing up a significant opportunity. Because of the value that comes from being able to screen, filter, and interpret what is useful in big data, data science, for instance, is a profession that is expanding.
Big data is so massive that those who choose to ignore it risk the survival of their own companies. Recognizing that good data is “in there somewhere” and being willing to mine through it are the first steps in extracting valuable customer data.
#2 Finance Analytics
Once you realize the potential of customer data for marketing, the key is to have the skills and tools necessary to sift through the sea of data and return with the information that makes the most sense to you.
Analytics should definitely receive a portion of your operational budget. Although larger companies may dedicate entire departments to this task, there are other ways to achieve useful analytics that are equally effective.
Even small to medium businesses can find an analytics solution that fits their needs in terms of size and budget.
#3 Utilize Past Data
People frequently consider metrics or digital insights as a way to help predict the future when it comes to deriving real value from customer data for marketing, but some of the most significant lessons that data teaches us have origins in the past. Analyzing historical data is a good long-term strategy for using customer information data.
Businesses should always be conscious of the fact that some of the best data sets are those that have been amassed over time. For instance, even though it is not a part of your current digital infrastructure, you shouldn’t disregard sales data from the previous five to ten years.
If you must, use document management systems and archive this data, but analytics applied to the task of sorting through historical customer sales data can yield a wealth of useful insights into consumer behavior and purchasing habits.
If you already have data, digitize it even if it isn’t digital, and make sure your software can use it. It might be a lot more useful than you think in the right situations.
#4 Customer Data Application in Operations
Utilizing insight in internal operations is a powerful additional strategy for maximizing the value of customer data for marketing. Naturally, extracting data from customer behavior and other datasets can aid in boosting sales, but don’t forget that spending less is another way to earn more money.
The right kind of customer data can help you increase efficiency and reduce waste in addition to increasing sales, both of which can boost your revenue. For instance, your customer data indicates that less and less of your marketing response is coming from Facebook and more and more is coming from YouTube and Instagram.
This may indicate that you should spend less—or even none at all—on Facebook and put more effort into the platforms that are producing results for your product and target market. Let customer behavior data assist in streamlining your business operations.
#5 Investigate Client Churn
The rate at which customers or clients switch from being loyal customers to doing business elsewhere is referred to as “client churn.” It is yet another area where big data and analytics can significantly alter outcomes.
his process involves analyzing your user data to draw conclusions about why some customers stick around while others only support your company for a limited time before leaving. Drops in customer retention may be correlated with when you stop supplying particular products.
Alternatively, you might discover that while you experience a significant increase in customers during certain sales or times of the year, they leave soon after.
Analytics focused on the specifics of your client churn can help you understand how to retain more customers and thus enjoy more consistent profits.
#6 Social Media Also Has Data
A massive portion of global data comes from social media. Analyzing social media and using the unfiltered, unsorted data that appears there can be incredibly helpful in obtaining real value from customer data for marketing.
An in-depth analysis of social media data can help you identify your target market’s location as well as its needs and wants.
It’s critical to realize that social media content can be a symptomatic indicator of other trends and factors to capitalize on for businesses that are paying attention.
Therefore, rather than just using social media as a way to connect with them, think of it as a window into what your target market might be looking for.
#7 Data Must Be Available
Access to data should be distributed throughout your company. While it is acknowledged that having information that your rivals do not can give you a competitive advantage, this does not apply to your own business.
Your business will suffer if you have knowledge of a customer’s needs or behavior, but someone who could actually benefit from that knowledge does not have access to the same information.
You should always make sure that digital insights are shared and accessible for those who need them in order to get the best return on investment (ROI) from your customer data for marketing.
A person who manages customer support, for instance, should be able to communicate the specific problem and the customer’s complaint to any department that might be able to assist in resolving the issue.
Only when it can be accessed by those who know how to use it is information useful.
For instance, if your finance department is prevented from accessing certain financial data, that adds another layer of inefficiency.
#8 Never be Hesitant to Automate
Did you realize it? Nearly 90% of businesses claim that their marketing automation strategy is effective. Contrary to what is commonly believed to be the case, automation does not inevitably imply that a person’s employment is in jeopardy and that a layoff is imminent.
Data analytics can also benefit from automation, which is not limited to physical, mechanical tasks. Instead of going through every piece of incoming data line by line and extracting the information that is relevant to you and your needs, software, and algorithms can help you find some of the most insightful information about your customers.
Even your human resources can be freed up by automation to work on more analytical tasks that are more suited to their skills. The software can help with repetitive, mechanical tasks like processing payments, for instance.
Your human staff can focus on more ambitious, creative tasks if they have fewer routine tasks to complete throughout the day.
Study customer data more thoroughly for marketing.
Daily data production exceeds what any one person or group of people could reasonably monitor.
However, those data also contain a wealth of insightful information that can be used to make decisions.
A company can only increase its revenue by using tact and sensibility when selecting, analyzing, and applying the appropriate data.
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