A new age of data-driven analytics is here, and companies that are taking advantage of this competitive edge will win their share of the market over the next few years. Entrepreneurs can turn their data into an operational compass, giving them both the current health of their business along with future projections.
Data-driven decision-making allows small businesses to establish baselines and goals, make better decisions with real-time intelligence, and predict what will happen next. 91% of organizations say they achieved measurable value from data and analytics investments, which shows the widespread adoption of data-driven analytics along with its value. Data also helps uplevel marketing efforts by improving processes, understanding wasted time and money, and creating evidence-based marketing strategies. In this article, we will explore how to use data to navigate the business landscape.
Collaborate with other users or groups
Data can be used across every aspect of your marketing efforts, from planning to execution to post-launch reporting. Data can be used in goal setting and budget allocation while also powering ad targeting and A/B testing for further optimization. Then, after a campaign is run, data supports performance evaluation and accurate calculations on your return on investment (ROI). However, we’ll focus on three main ways to use data in your marketing efforts, from monitoring phone calls to allocating cash and budget to crafting personalized content experiences.
1. Phone Metrics and Call Tracking
While digital marketing like websites and social media are valuable tools for answering customers, many consumers still want to make a phone call. It might be to ask for pricing, check on availability, or clarify information about a product. Whatever the reason, call tracking and analytics are important for small businesses to gain visibility into who is calling and why.
Vanity Phone Numbers
Vanity phone numbers are one way to create a custom phone number for different customers to segment where they’re coming from. For example, you could create a different custom vanity phone number for your website and another one for partner referrals. Plus, call-forwarding capabilities help increase conversions by turning the world into your office and allowing you to answer questions from anywhere.
Customer Segmentation
Once customers are funneled in through your call tracking system, integrate with your customer relationship manager (CRM) to segment audiences even further. Research shows that businesses generate 10% to 15% more revenue when they tailor their offerings to different customer segments. For example, you can divide customers based on demographic information and send them personalized content based on their needs and goals. You could also segment customers for certain sales team members to reach out to certain industries, increasing the likelihood of a buyer moving down your sales funnel.
2. Budget Projections and Cash Management
Establishing a marketing budget is critical for optimizing cash flow, staying on target, and hitting revenue goals. For small businesses tight on cash or just starting, optimal cash management is important for keeping the lights on. For example, use data to work backward for paid advertising to become profitable. For example, if your business is spending $1,000 per month on Facebook ads, you want to be making at least $1,000, if not significantly more, from those ads.
Seasonal Cash Management
Predictive analytics and data can analyze historical performance to give clear, visual views into cash flow and financials. For example, you might discover that your inventory spending kicks up in August to prepare for the busy holiday season. Managing cash and inventory levels helps you not over-purchase and end up with a deficit after the holidays.
Labor Staffing
Similarly, data can help you plan for employee labor, making sure you’re adequately staffed at the busiest times and not overpaying employees during your slower seasons. Overall, data can help with budget projections, revenue forecasting, expense tracking, cash flow optimization, and various risk management scenarios.
3. Personalized Content
Personalized content is the king of marketing efforts as savvy consumers are used to seeing ads, blogs, social media, content, and more that is directly relevant to them. Personalized content improves both engagement and conversion rates, and utilizing data to understand your customers and buyers helps you create the most powerful contact across all of your channels. Research shows 64% of marketers say an improved customer experience is the biggest benefit of personalized content.
Historical customer data
For example, small business leaders can use historical customer data to analyze purchasing patterns, offer recommendations, create special offers, and send content to align with their past buying preferences. For example, if you’re running a baby clothing brand, you could look at historical data to realize a family orders new clothes every three months for their growing toddler. This data-driven insight allows you to build out automated emails, text messaging, and more to reach this customer right when they’re ready to purchase new clothing.
Website Behavioral Tracking
Another way personalized content is integrated with data is through website behavioral tracking. Utilize data on real-time customer behavior to see how buyers are interacting with product pages, the checkout experience, and more. If you discover the drop-off rate is high at a certain part of your checkout experience, you can perhaps simplify the page, Add in other payment options, or provide more customer testimonials to reassure the buyer.
Shopping Recommendations
Also, you can create personalized recommendations based on searching and buying preferences. For example, if a buyer is browsing winter jackets, you might offer accessories like hats, gloves, or scarves to increase their average order value. 54% of retailers claim that personalized product recommendations increase their average order value. Data can help you reach these shoppers at the right place at the right time with the right offer to increase your revenue.
Optimize Your Marketing with Data
Data unlocks invaluable insights into your overall marketing and business performance. Data-driven insights improve the effectiveness and efficiency of all your marketing strategies, helping you optimize budgets, increase order values, encourage customer retention, and, overall, create a better customer experience. Without data-driven decision-making, small business owners can fall into the trap of making emotional decisions not based on hard numbers. When leaders can rely on unobjective data, it’s easier to maximize your marketing ROI and deliver highly effective and relevant campaigns to your target audience.
