The total amount of data we create is increasing exponentially year on year. Studies suggest that the amount of data we generate, share and consume will reach over 180 zettabytes by the end of 2025. Collecting, analyzing and evaluating data has incredible benefits for company owners, but how do you use data effectively? In this guide, we’ll outline some simple, impactful strategies to help you use data to drive your business forward.
Target key customers
One of the best ways to harness the power of data to enhance business performance is to target key customers. Using data and analytics, you can pinpoint target audiences to create good-quality leads with a high chance of conversion. Collecting information and using data to reach your ideal customers not only increases the chances of making sales and attracting new clients but it can also optimize your ROI. Making data-backed decisions can help you lower spending on marketing products and services to customers outside of your chosen demographics. Use software and tools to identify the best sales opportunities and market research to determine the best ways to connect with your chosen audiences.
Get to know your ideal client
AI has multiple benefits for business owners and sales and marketing teams. One key advantage to adopting innovative AI technologies is getting to know customers better by analyzing patterns of behavior and consumer trends. AI evaluates huge data sets rapidly, providing access to critical information for sales and marketing teams. Using software and cutting-edge tools, you can access useful data, such as when people shop and which kinds of deals make them hit the buy now button, for example.
Make decisions without guesswork
Forward-thinking businesses use data to inform decision-making. Accessing relevant, accurate data eliminates the need for guesswork when drawing up strategies from designing new products and creating new marketing campaigns to figuring out the best ways to develop and expand the business. Assessing data maturity is an important part of embracing data-based decision-making. Consider where your business is on the data maturity curve. Are you just starting to collect and analyze data, are there gaps in your strategy, or do you consider your enterprise a leading force that utilizes data to underpin your business strategy? If you’re not at the point where data is critical to decision-making and planning, it’s beneficial to learn more about data and understand how you can use it to develop your business. If you don’t have dedicated experts on your team, consider seeking professional advice or working with external consultants or agencies.
Boost client retention rates
Research indicates that loyal customers spend up to 67% more than new clients. Boosting retention rates is not only beneficial for increasing profits but it can also help to enhance your brand reputation. Using data-driven strategies can help you improve customer retention rates in several ways. Examples include tailoring offers and deals to suit individual clients, using machine learning to predict what clients like and dislike, personalizing customer experiences, and identifying the most valuable customers. High retention rates can encourage loyalty among other clients, especially if your customers are willing to share reviews, recommend your company and refer friends and relatives.
Enhance customer service and support
Studies suggest that up to 96% of consumers would consider leaving a business due to poor customer service. The service you receive impacts your perception of the brand regardless of the quality of the product you buy. If you run a restaurant, for example, diners may not come back if the service is bad, even if they love the food. Enhancing customer service and support is an effective way to improve customer retention, reduce the risk of negative reviews and feedback and boost your ratings. Analyzing data can help you identify concerns and pain points. If you provide a chatbot service, for example, you can collect and evaluate data gathered through conversations to highlight the most common or serious problems and gauge what matters most to customers. If you know where you’re going wrong, you can then address issues to provide a better service.
If you own a business, collecting, analyzing and evaluating data offers incredible benefits. Using relevant, useful, accurate data can help you drive your business forward. By harnessing the power of data, you can get to know customers better and identify high-quality sales opportunities. You can also personalize client experiences and highlight pain points to enhance customer experience, service and support, optimize ROI and conversion rates and eliminate guesswork when making decisions, planning and strategizing. If you’re not already taking advantage of analytics and innovative data-based tools and platforms, now is the time to research, seek advice and learn more about how you can use data to help you achieve key business objectives.
