Most business owners are aware that they are collecting their customer data, if only because they keep having to change the way they work in order to keep doing so legally! However, the businesses that not only collect data but organize it in such a way that they can use it to carry out in-depth analysis to help drive business decisions are the ones to watch – they are the ones who are likely to be the most successful.
Inform Product Decisions
The data you collect not only about your customers, but about the season and the world at large can be used to inform your product development decisions. For example, take a manufacturer of blankets. From monitoring their customers buying habits they may have noted that during the winter period they usually sell warmer and thicker blankets. They may also have noticed that during the pandemic and the subsequent lockdown, that more people than usual were investing in weighted blankets to help them to manage the anxiety they were feeling about the uncertainty. Using that information, coupled with reports that the weather is getting colder and that we are likely to experience further lockdowns, the company might decide to push development on a thick and cozy weighted blanket, specifically designed for winter. They are likely to sell more blankets than their competitor who has not made this connection and simply sells thick blankets as usual.
Identify Areas For Improvement
Your data can be a great way to identify ways for you to improve your business practices. For example TruQC, who design field service management software, have reported that one of their customers has halved their inspection times since using their solution. This is made possible by analysing the data.
Companies use the software to report accurately on what they are doing on site, which allows visibility of the current processes and the inefficiencies within it. The company can then redesign processes as they choose based on this data, in order to save themselves time and money.
Collect Customer Feedback
Companies like Netflix collect data from their customers almost constantly. They will not only be monitoring which users are watching which titles, but also where they pause them, where they give up and start watching something else, and how their viewing habits change in line with the season and world events.
This enables Netflix to keep serving up exactly what its customers are looking for without ever having to ask. It’s no wonder they’re so huge!
Inform Marketing Decisions
Data can also be used to inform marketing strategy. In terms of social media, by reporting on which users are engaging with which content, on which platform, and at what time of day, you can keep honing your marketing campaigns until you are almost guaranteed to have enormous engagement on virtually every post.
For more traditional marketing methods, data can be used to inform which publications or television channels are most likely to have the readership or viewership that will be interested in what your company has to offer and therefore ensure that you don’t waste money on costly advertising campaigns that won’t get you any more customers.