Our world produces more data than ever before. With every swipe of the credit card and click of the mouse, we produce data. This data is then added to more data to create big data. In order to understand this information, it needs to be analyzed and reported in a way that makes sense. This is ultimately what data analytics software is for.
At first, big data might look like uncharted territory, but analytics software makes it easier to work with big numbers and lots of data. The goal of this software is to turn the numbers into valuable insight that can help brands deliver more targeted messages.
Let’s explore the many benefits of using data analytics to improve your marketing decisions.
Personalize Customer Interactions
Businesses can learn a lot about their customers through surface-level data, such as gender, age, and geographical location. Businesses are also able to collect information regarding customer behaviors and interests. Ideally, you want users to agree to share their information so that you can get accurate data that hasn’t been tampered with.
Although there are a lot of opinions on privacy issues, many customers are open to sharing their data. They know that by doing so, they can receive more personalized product recommendations, targeted ads, and relevant content. In fact, not personalizing communications is more likely to hurt the customer experience.
The bottom line is that customers want to be unique individuals, not a number on a spreadsheet. By utilizing the data they share with you, you can personalize the customer experience and reach greater ROI.
Discover Which Channels are Working
Businesses will go through all lengths to increase their online visibility. Before big data, businesses didn’t know which channels brought them the greatest ROI. Therefore, it was easy to dump money into areas that weren’t producing. Thanks to advances in data science, this is no longer the case.
Marketers can track customers along their journey using CTR and cookies, from interest to point of purchase. They can identify which marketing channels are moving customers through the funnel and which are causing them to drop off. Weaker channels can be improved upon or eliminated and ideally, the customer journey should be as streamlined as possible.
Determine Proper Price Points
Product pricing is one of the most important aspects in the marketing mix, as your products must be priced right to sell them to customers and make a profit. Before we had big data to rely on, pricing was determined by careful analysis and monitoring. However, because the data usually came later, businesses weren’t able to make price differentiations in real-time.
Thanks to big data, it is possible to change pricing based on a number of factors, such as location, time of day, customer preferences, and past shopping behaviors. Also, by detecting certain buyer patterns and behaviors, marketers can determine when discounts, promotions, and other special offers should be offered to customers to make a sale.
Create a Uniform Brand Experience across Channels
Even though users often turn to the internet to research a product before buying it, this doesn’t mean that all of their interactions take place online. Customers interact with brands on a multitude of touch points, such as email, social media, website visits, and in-store visits. To deliver a consistent brand experience, it’s important that all touch points are cohesive.
Data analytics can be used to identify multiple customer touch points and ensure that they support your customer profile. For example, your social media profiles, website, and email communications should have the same look and feel. This provides an engaging, uniform experience regardless of how customers reach and interact with your business.
Understand Customers as People
As technology becomes more intuitive, people expect that the things around them are more personalized and relevant. Millennials and Gen Z’s, in particular, have learned to tune out the noise that doesn’t interest them. In other words, no matter how bright and shiny your ad is, it won’t have an impact if it’s not relevant to the user.
Fortunately, data analytics software provides deeper insight into who customers are as people. It goes beyond surface-level data and identifies customer preferences, interests, hobbies, pain points, and even what they are most likely to be doing on a Friday night. Using this information, you can create customer personas and use them to create tailored marketing campaigns.
Thanks to data analytics, brands are able to understand the information they are collecting on customers. This leads to data-driven decisions that create happy customers and effective marketers.