Managing customer data is a hot topic. According to one report, customer data is now the world’s most significant resource—“the oil of the advanced period”—and needs to be treated and protected as such. Failing to do so can result in genuine damage.
Consider the ride-hailing service Uber. The organization experienced an information break in 2016 when hackers accessed the private data of around 57 million individuals, including 600,000 driver’s license numbers. The incident cost Uber $148 million in the settlement alone. It additionally caused significant harm Uber’s standing, especially after the organization endeavored to hide the breach from the public.
The collection of customer data has become paramount in today’s world of business. Regardless of the size of your company, being able to gain further insights into your customers, and using it correctly can make your business very successful. But how exactly does that impact a small business? Well, there happen to be five very significant ways data can help your small business. Here is a closer look at the five ways of customer data.
Any idea of how data analytics can help your small retail business? By using data capture tools online or in-store you can learn about the behaviour of your customers and work towards improving the relationship your business has with them. You do this by taking their feedback (this may include online reviews) and changing things on your website or in the brick-and-mortar storefront to meet their demands. Happy customers are regular customers.
Never underestimate the power of niche marketing. When you can identify niches that your customers group into, you can make better decisions related to target advertising. This not only makes for effective use of marketing funds but encourages engagement when you promote products that are specific to the niches you have identified from the data being collected. This also means stocking items that interest those niches as well.
When faced with how to increase business, customers need to be shown how great your products are rather than being told that they can’t live without them. This information can be in many forms such as customer reviews, blogging about products with testimonials, how-to videos, and more. The goal here is to gain trust by sharing real information about products, created by real users of those products, that demonstrates their use in practical ways.
When you create a marketing strategy to increase sales, let technology assist with this. You’ve already collected and analyzed the data to where you have a great understanding of who your customers are. Build your marketing around that to target them on the medium they use most. By reaching your customers on platforms they use, you stand a better chance at increasing conversions.
The pricing of new items is always difficult. You don’t want to go too high to scare off customers or too low which may insult some customers. The data you have collected should reveal price points that seem to be comfortable for them. With this information, aim to price new items in the range that your data supports. It is how to improve business sales in an effective manner that can be backed up by accurate data.
Using data analytics is an effective business strategy to increase sales. The list above outlines five ways the information you gain from the data can assist your small business. For more information on how to implement data collection tools in your business, contact us today.
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