Today, customer expectations are at an all-time high, and competition is always increasing. The digital era has empowered companies to gather relevant information on their customer’s journey. This information includes their mobile app usage, digital clicks, interactions on social media and so much more. This data provides a competitive advantage to companies since it’s easier for them to analyse the weak points and potential gaps in the market. Therefore, data analytics has become one of the most valuable tools across the organization and for marketers.
What is Data Analytics?
It’s the science of examining raw data with the aid of specialized tools and software in order to extract meaningful information about the consumers. Data Analytics technologies and techniques are extensively used in commercial industries to make more informed business decisions. It is also used by researchers to verify or contradict the scientific models, theories and hypotheses.
How data analytics can benefit CMOs
1. Define your demographics
Earlier, marketers had to make the most probable guess regarding the demographics for their ideal market segment, but this is not the case anymore. With data analytics, companies can quickly access the information of their current/target customers. The information includes everything about website visitor information like which websites they go to, how much time they spend on each website, which CTAs they click on, and even the social media platforms used by them.
2. Optimize customer engagement
Data gathered through big-data technology can give us an insight into who our potential customers are, what are their needs, how often do they make a purchase, where are they located and everything else that’s relevant. Companies can also analyse how users interact with their website or their physical store, which can help improve the user experience.
3. Improve customer retention and loyalty
Due to high competition in the market, one of the most important responsibilities for an organization is to improve customer retention and loyalty. You can also track the buying procedure of the customer through data analytics. There are programs like a ‘loyalty card’ that also help you track a customer’s purchase. Data analytics can also track the trending incentives and promotional methods, which are useful for encouraging a customer to make other buying decisions.
4. Optimization and performance
It is important to monitor the impact and return on investment (ROI) of the marketing efforts for which data is collected. This data, with the help of data analytics, can be used by companies to make favourable buys across different channels. It continuously optimizes their marketing efforts by testing, measuring and analysing. By measuring the optimization, the company can improve their performance.
5. Smart Decision making
With more information, it’s easier for a team to make quick decisions and it becomes easier for every employee to make informed decisions. That’s why every department should have access to data analytics. With the access to vital data, monitoring it effectively would mean that every new idea, direction or project could help in the growth of the business.
6. Better insights through data visualization
Data visualization gives a faster and better way to distinguish current trends. It gives companies the ability to make a quick move. It can help them get a faster insight and make better decisions. Through graphs, charts and other visual aids, the decision-makers can make qualitative choices. This insight can help a team function faster and keep an organization constantly moving.
Earlier, it was difficult to measure the ROI of a blog post. Now thanks to big-data analytics, marketers can quickly analyse the pieces of content, and find out which one’s the most effective. Even SMEs or start-ups can afford these tools to monitor content scoring, which highlights the most reliable piece of content for higher sales. The sales team, with the help of content analysis, can help in forming predictive analytics which can then be applied to build an effective content model. This model can predict the consumer behaviour and sales.
8. Reputation Management
Companies can monitor their mentions across various websites and social platforms to find reviews and opinions about their organization. Social media tools make it easier to collect and analyse data about the competitors and their marketing strategies as well. This information gives a distinct competitive advantage to the marketers.
The aforementioned list throws some light on the current possibilities of data analytics, and how it can be used effectively by marketers. It can be useful for large-scale to small-scale businesses or even by a novice user. Big data and data analytics can become a boon to the companies that can successfully comprehend them, and turn them into valuable and consumable data.