Marketers today understand that capturing the data that streams into their organization allows them to apply analytics to gain significant insight on ways to grow and improve their business. Here are 10 areas where data analytics plays a critical role for today’s marketing professional.
- Make strategic decisions: Accessibility to relevant data gives marketers the power to make accurate decisions to leverage business. Marketers use analytics to learn what causes a change in marketplace behavior and can quickly respond to meet demand.
- Understand customers: Analysis of buying behaviors helps marketers better understand marketing personas. This enables them to focus on the right customers and prospects – and capture them when they are actively looking for their products or services.
- Increase profits: Marketers use their understanding of marketplace demands to customize their products and services, making them more valuable to existing customers and better suited for potential customers − ultimately increasing profits.
- Reduce costs: By observing who responds to solicitations, marketers determine who is most likely to respond in the future. Targeting those who are likely to respond allows marketers to get more “bang for their buck” via higher response rates.
- Improve service: No one likes waiting around for service. Clever data analytics ensures that wait times are kept to a minimum. For example, a fast food business removes certain items from its display when lines are long, ensuring the fast service they are known for.
- Gain loyalty: Data allows marketers to profile consumers in a far-reaching way so they can engage in one-on-one, real-time conversations with them. This is no longer a luxury. If marketers don’t treat consumers the way they want to be treated, the customers will leave for the competition.
- Predict behavior: Data analytics can predict and influence the future. Marketers can use historic data to extrapolate and make predictions about the future and take actions that impact further behavior.
- Create goals: Marketers must define clear, specific goals. This ensures they think strategically, measure progress, and move toward business needs. Analytics makes this an easy and efficient process.
- Increase promotions: Analytics are key in helping marketers understand which promotion techniques work well for their business. For example, in-depth analysis of data metrics captured during consumer website visits can determine if those on the site are the ideal audience.
- Improve operations: Data lets marketers test different variations of designs to see how changes in lead times and performance, for example, could raise the efficiency of the production process.
Several years ago marketers would have gathered information, run analytics, and unearthed data that could be used for future decisions. Today they can identify insights for immediate decisions. The ability to work faster and stay agile gives marketers a competitive edge they didn’t have before.