Data is the new oil: How to use it to sell moreOpinion ·
Mother Teresa once famously said, “to keep a lamp burning, we have to keep putting oil in it". She, of course, meant that putting in the effort was a surefire way to see results. Efforts alone aren't enough for businesses looking to grow in today’s hyper-competitive business climate. New digital technologies, such as artificial intelligence, machine learning, and predictive analytics, are changing how we buy and sell.
While this well-known quote still stands true, the mere definition of "oil" has undergone a massive transformation. Data’s role in core processes such as marketing, customer retention, and sales is becoming increasingly pivotal for businesses of all sizes. Read on to see how data is helping brands sell better and how your organization can use the power of data to thrive.
How is Data the new oil?
While calling data the new oil makes understanding its value easier, analytics are much more valuable than oil. It is a valuable resource that provides insights into consumer trends, market conditions, and overall economic activity.
Here are some statistics that further help showcase how data is transforming industries around the globe:
- Brands that proactively try to use data-driven information in business practices report an average profit gain of 5.32% annually.
- Fortune 1000 companies stand to generate revenues worth over $2 billion by improving their data usability by just 10%.
- 62% of brands say using data gives them an edge over other businesses in the industry.
- On average, using data has helped companies cut down on 10% of operational costs.
The trick is understanding data’s usefulness and honing the skill of maximizing the impact of information. Just like oil, data can generate great value, fuel innovation, and drive economic growth. Data’s potential can leverage multiple benefits for businesses of all sizes, regardless of the industry.
7 Reasons why data makes you sell more
The data and analytics market is worth about $274 billion and is expected to go up. The benefit these new technologies is leveraging for business is much higher than this. Here are some ways data is helping companies sell better and more than ever before:
1. Gives in depth market understanding
By collecting and analyzing customer data companies can gain valuable insights into consumer needs and preferences, market trends, and competitive landscape. This knowledge can help inform strategic decision-making, product development, and marketing efforts.
In the words of business management guru Peter Drucker, “the purpose of business is to create a customer". When looking for gaps in the market, data analytics can give your business a considerable leg-up.
Gathering information about past shopping trends, customer preferences, and bestselling seasonal offerings is an important step of the product development process. This information can help you design better products that sell because they resolve customer pain points.
2. Enhances customer experience
Data helps companies enhance their customer experience by making services more customer-centric. Everything from the automated voice consumers hears on the company’s hotline to the FAQs on their website can be improved with the help of analytics.
Data also helps reduce the time their customer service teams take to resolve customer complaints. By better predicting customer behaviors and improving the buying experience, data is helping companies increase the customer lifetime value of their customers, and improve their brand image simultaneously.
3. Targeted personalized marketing
Data enables marketing campaigns that are tailored to specific segments or individual customers. Personalized marketing campaigns improve customer engagement, increase conversions, and ultimately drive growth for the business.
Ever noticed additional suggested products at the bottom of the page while shopping on Amazon? Those suggestions are custom-picked for you based on data such as your preferences, buying patterns, and social media activity. Most customers buy products from the suggested list even when they initially didn’t plan on making the purchase.
That’s how Amazon uses data-driven analytics to grow into the $1 trillion e-commerce giant it is today. Companies are increasingly utilizing upselling techniques like product suggestions to sell more products using customer data.
4. More accurate customer segmentation
Data can help organizations create more accurate customer segments and sub-groups. 70% of customers say feeling understood by a brand increases their chances of staying brand loyal. Big data helps brands do just that by tailoring marketing efforts to specific groups.
Customer segmentation is a concept that has been introduced previously. Naturally, a group of teens is more likely to purchase the most-trending backpacks than a middle-aged group. Data analytics have revolutionized customer segmentation by automating and making customized marketing effortless for more brands.
5. Data makes it easier to gather more data
Data helps companies sell. It also helps companies gather further information and create a multifaceted understanding of what their target customers like and how they buy. This information is how they can sell even more. Data-driven systems help companies identify the genre of data most beneficial to their unique brand dynamics.
Knowing what works helps brands to focus on gathering, organizing, and processing the right data. This approach toward data has dual benefits for the brand:
- The company increases the chances of getting customer data by designing more precise forms and surveys.
- Customers resonate with the brand because they feel heard regarding their feedback and experiences.
6. Increased resilience against operational risks
Being profitable isn't only about selling more products or getting more customers to sign up for your services. Reducing waste and preventing risks that jeopardize your business are also huge wins. When you waste less, you save more. These savings compound and pad your bottom line.
Predictive data analytics help fortify your organization by:
- Giving better protection against cyber attacks.
- Timely logistical support for raw materials and merchandise.
- Pin-pointing resource drains within your production processes.
- Reducing waste or resources by scaling production up or down.
- Early identification of potential issues, such as short supplies of raw materials.
7. Boosts ROI
Businesses spend a lot of resources on developing, manufacturing, and marketing new products and improving old classics. Data analytics can act as virtual crystal balls for brands looking to maximize their ROI.
Properly collect and analyze customer data open the door for up-selling and cross-selling opportunities. By analyzing customer data, businesses can identify customers who are likely to be interested in a related product or service, and target them with personalized offers or promotions.
Also, by predicting which products are most likely to be profitable and how to best market them to consumers. Data is helping companies optimize their returns on investment by not just selling more but selling better.
How your business can use data in a smart way
We’ve established how evolving into a more data-centric business should be mission-critical for any brand trying to sell more. It’s how data is collected and applied throughout an organization’s business processes that give it an edge over its competition.
Here are some ways your company can gather and integrate data to improve sales, manufacturing, marketing, and customer service:
Harvest data the right way
They say knowing what to ask is more important than the answer itself. The same goes for data collection, especially customer data and records. Knowing how to collect data efficiently can help conserve company resources. There are many ways organizations can collect data, such as:
1. Questionnaires and surveys Asking your customers to fill out a simple questionnaire in exchange for a discount code is a very effective method of collecting data. Presenting the survey in win-win situation incentives your customer to give you feedback about your product, service, or sales process
2. Focus groups Creating a focus group of current and potential customers is another useful way to gather data. It can be done physically or online and helps provide qualitative and quantitative data. This method can be very beneficial during the product development or re-launch stages.
3. Social media tracking Social media tracking is a great data-collection strategy that doubles up as a customer engagement tool. Your brand’s social media pages can supply real-time data about trending products and customer preferences.
4. Throughout the sales funnel After-sales product registration, customer complaints, monitoring transactions, and tracking marketing campaigns are ways of collecting data throughout your sales process. This data helps learn about customer demographics and common product issues.
Identify Which areas can be improved
Once data is organized, re-examine standard business practices in light of new information. That helps connect practices with data and improve efficiency across the board.
For example, a bakery business could use customer survey data to understand the changing fitness trends and customer needs better. This data can help develop products or services that meet those needs better. Such as a range of gluten-free or low-sodium baked goods.
Here are some ways you can incorporate data to make business practices more efficient:
- Tailoring advertisements to better suit customer demographics.
- Improve and laser-focusing your marketing efforts toward potential customers most likely to buy.
- See how each product/service is performing in the market.
- Identify the patterns and features that make a specific item your best-seller.
- Increase assembly line productivity by detecting and correcting bottlenecks, wasted resources, and spoilage.
- Shorten customer complaint resolution time.
Streamline and automate processes
Just like Big Data, automation is another trend helping businesses manufacture and sell more. Automation can help cut down expenses, boost productivity, and improve competence. One of the most effective ways to make Big Data work for you is by taking the guesswork out of manufacturing and customer service automation.
Data analytics can help automate mundane tasks within your manufacturing process and update how your customer service team handles feedback and complaints. Here are some ways you can automate systems within your company by using data:
- Maintain more accurate records by automating error-prone tasks such as data entry.
- Automate routine decision-making processes by basing them on data-driven facts and statistics.
- Cut down on customer complaint resolution time by automating answers, FAQs, and complaint registration processes.
- Manage product volume by automating production scaling in light of real-time data analytics.
- Reduce the time your employees spend on tasks by introducing soft wares and tools
Data helps point companies in the direction that’s most likely to prove profitable for them. It’s an ongoing process rather than a one-time task. Companies must monitor how their data-driven decisions translate into quantifiable profits.
For example, a hair salon starts to collect data analytics and tailors its marketing campaign. Still, its marketing initiatives and website SEO efforts aren’t yielding the ROI that they predicted. Through online tracking, they discover the reason for customer disengagement.
Their customers are more likely to book an appointment after seeing results, not reading blogs about skin care. The hair salon revamps its strategy, and adds more visual elements to the website, and the conversion rate escalates within days.
How Layerise can help you to leverage the power of data
Collecting and analyzing data, then transferring it into usable guides for businesses, is an ever-changing science. Layerise does all the hard work for you by applying the most effective strategies to collect and organize customer data on your behalf.
We help businesses leverage the power of data by providing them with a comprehensive suite of tools and services, such as data visualization, predictive analytics, and data-driven marketing.
That makes it easier to gain valuable insights, improve existing processes and make better-informed decisions. All while improving after-sales services for your customers. Book a demo today to see how Layerise can help your brand become more profitable.
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