Data-driven organizations are 23 times more likely to acquire customers, 6 times as likely to retain customers, and 19 times as likely to be profitable as a result. That’s because there’s nothing more powerful than knowing how to leverage customer data analysis.
If you look closely, you’ll find that some of the biggest decisions brands make come as a direct result of powerful customer data analysis.
Putting Customer Data Analysis in Action
We know customer feedback and research is important. Now that you have it, what are you going to do with it? Here are five great places to get started.
While your original price point may have worked for the launch of your business, it may not hold up in today’s current economy. However, it could be difficult to determine whether your customers can’t afford your product or if they don’t want to spend the money on it. Customer data analysis is a great way to gain some insight into this subject. You can follow trends in sales along with what may be happening in the current economy. You can also see if customers are more willing to put out the cash for one of your products than they are for another, and look into why.
Target Pain Points
One of the most important methods in marketing is to speak to what worries or concerns your audience have. It’s important to know what keeps them up at night, what area is keeping them from feeling satisfied, and how your product can help them. This is where customer data analysis comes into play. You can hold focus groups, review surveys, or tap into your social media analytics to get a better pulse on what matters to your audience. That’s when you can explain how you can help.
Enhance Customer Retention
Have you ever walked into a Target or a Safeway and felt like something about the layout made you want to spend more? Major brands use customer data analysis to tap into important insight, like the fact the people tend to glance left first, causing them to walk counter-clockwise. They then lay out their store to hold your retention and encourage you to shop. It works with more than store layouts. You can get a better idea of packaging, graphics, and even the kind of voice you choose for advertising from data to increase retention rates.
Every industry has its weak spots. For some, it’s a specific location on the map. For others, it’s a time of year where sales seem to take a nose dive. Being able to spot these trends and anticipate them could determine the success of your business. By tracking these changes, you can safeguard your choices for better risk management. For example, if you know that your sales tend to dive around a specific month, you’ll know that’s not the time to make risky investments.
A popular motto in marketing is “if you’re speaking to everyone, you’re speaking to no one”. The best marketing campaigns send the right message to the right people, not everyone. However, it could be difficult to decipher exactly who you should be speaking to. This is where customer data and analytics come from. Who’s your ideal customer? What group can’t get enough of your product? Which group is the most likely to recommend your product? The deeper you dig the more you know who to talk to.
Use as Supportive Case Studies
Sometimes customer data analysis isn’t used to fix or avoid something, but celebrate it. When a great success comes along for your brand it’s important to record it, detail for detail. This is a game changer when it comes to future projects, as you will already have a winning formula in your corner. Knowing what already works can be a major asset.
Launch New Products
A new product can be a risky move, especially when it’s out of the realm of what your brand typically offers. It can be scary to not know if a product you invested in will be a hit or bomb. This is where customer data analysis like soft launches, focus groups, and product reviews help. If a certain product doesn’t perform as well as you may have thought, you know not to add it to your line.
Improve Customer Service
Running a successful business stretches well beyond getting them to acknowledge your product or walk through the door. Customer service will play a large role in whether that customer returns or even buys in the first place. This is why you’ll want to know exactly what the average customer experience is like. Customer data analysis can help you gain insight into this area, so you know if further employee training or action needs to occur.
Review for Expansion
So you’ve used your customer data analysis and it’s thriving! Congrats. Now you’re looking to expand. Whether your brand reaches across the country or across the globe, you’ll want to know how warm of a welcome you’ll be receiving. This is where customer data analysis comes in. It helps you determine which location can’t wait to have you and which you may want to skip.
The More You Know
Customer data analysis can make or break a company. The best brands know it’s not the data but what you do with it. When it’s time to put the data into action, it’s important to have the right business solutions behind you.
Try us today to get professional feedback on how to best use your customer data analysis to grow your business.