Big data and data analytics are the business buzzwords of the moment. Many businesses are questioning whether they should invest in analytics consulting or new software. Today, companies need to be well-versed in the digital world. From social media to ecommerce, the world is becoming increasingly more digital. With all the sharing of information, businesses have access to data on consumers, potential customers, and the psychological patterns of transactions.
Currently, according to a report released by DOMO, we’re generating 2.5 quintillion bytes of data each day! But how are businesses using this information? Can you use this data to increase growth? What are the benefits? Let’s look at how companies are using data analytics.
Tracking Potential Customers:
Many companies are using big data to track their entire customer path. From the moment they first come across the company, to the second they make a purchase, every moment in the customer acquisition cycle is trackable and full of useful data.
Companies can analyze which ads perform best, which emails work, how long it takes for a customer to make a purchase, and more. You can dig deeper and determine when a customer is ready to buy and how to get them to take the plunge.
Tracking customers and data throughout the entire purchasing cycle requires several programs, types of software, and skills. In general, it’s like creating a big data-crunching machine, where several parts are running simultaneously, and they’re all essential to keep the machine working.
Improving Customer Experience:
Businesses also use data analytics to track customers after they’ve purchased. There are hundreds of programs to help track the entire customer life cycle. You can get in and see how and If customers are engaging with follow up sequences. You can analyze which salespeople are resonating with customers. You can even see which method of communication works best for your clients. From chatbots, to phone calls, to emails, and social media, there are endless ways to track the customer experience.
Diving deeper, analytics give insight to customer issues, and breaks in the customer process. This insight allows business owners and executives to nip service problems in the bud. Without analytics or tracking, huge customer experience issues often go unnoticed until they become an unmanageable issue.
Moreover, in-depth data analytics help to identify patterns. For instance, with data tracking in tow, it’s easy to see if customers continually have the same questions. If they do, it might be worth addressing those questions as part of the onboarding process or creating a webpage that answers those questions. Identifying patterns is one of the most significant ways that companies are utilizing data.
Improving Decision Making
Ultimately, data analytics makes making decisions much more straightforward. With so much information, business owners feel empowered to move in directions and know that they’re making the right choice. Having comprehensive data analytics is almost like having a crystal ball. You can predict the future based on the past, no magic required.
Whether you’re trying to make decisions about client acquisition, retention, or satisfaction, the data has all the answers. It also helps determine the best ways to allocate your budget. If you know what’s working and what isn’t (or who is and who isn’t), it makes budget allocation much simpler. There isn’t any guesswork, just hard numbers and reliable analytics.
Beyond that, big data can help identify fraud and find ways to increase revenue, that you might not have otherwise seen. Decision-making is a crucial skill for business owners, and data analytics allows companies to make those decisions with less inherent risk.
How to Implement Big Data and Data Analytics
Wrapping your brain around the complexities of big data is hard enough. Learning how to use it to benefit your business effectively is even more difficult. There isn’t one clear path or one right answer for data analytics implementation. The size of your business, the number of customers you have, your available budget, and the inner workings of your company all affect your implantation strategy.
You might not need every single analytic tracking software out there. You may not have a complicated marketing schema. You may not have any employees. However, regardless of your current operation, there’s a place for data analytics integration. The path to data is much like the path to building a business. What works for one company won’t work for another.
If it’s within your budget, hiring an analytics consulting company is a great option. They’re experts at data and do all the heavy lifting for you. If hiring an expert is outside of your scope, there are thousands of free resources online to help you start learning. Begin small and start implementing data collection and analytics into your daily operations. If you’re doing it on your own, don’t try to add it all on at once.
Big data is the new big thing business, so whatever you do, just get started.