If you are still reading it means we haven’t lost you at ‘big data’. It was ranked number 3 in the 2015 Language Monitor Buzzword of the Year list, but what’s more important is how this data can create sales and make you more money.
Companies glean a wealth of information about target markets and their behaviour from their online activity, point-of-sale transactions, loyalty programmes and public domain databases. However, simply accumulating data is not enough to gain a competitive edge. To do so, data must be used strategically, which is why big data is being leveraged by corporations of all sizes.
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Traditionally, big data has been gathered and analysed by the business intelligence units of companies, but the trend now is towards democratising data in organisations so that all departments can develop strategies based on the analytics and insights available to them.
How does it lead to sales?
To create long-term customers, companies need to engage with clients in meaningful ways, with sales campaigns that are highly targeted, relevant and personal. By using big data strategically, companies are able to:
Clearly understand customers and their behaviour
With this knowledge, companies can target individuals with personalised offers and relevant content. For instance, if a person has been searching online for cars for sale, they are more likely to be open to offers for vehicle insurance.
Segment audiences into loyal, lapsed and potential customers
Loyal customers can be rewarded and potential ones targeted. Behavioural patterns that indicate a customer is about to lapse can be detected, and that individual can be given special offers to retain their loyalty.
Position their products competitively
With big data, companies can analyse what their competitors provide and what customers want. Based on those insights, they can create compelling offers and market them accordingly.
Reinforce the decision to purchase
Customer behaviour can be tracked through the process of buying a product of service. If the transaction isn’t completed, the customer can be presented with appropriate advertising with retargeting software. They can also be shown content that will place the company in a positive light, encouraging them to purchase.
Find the best channel
Because of the high level of measurement big data offers, companies know the most effective medium and time to communicate with their customers. All details can be measured, including the subject lines that lead to the highest email open rates.
Optimise ad spend
A study by The SpaceStation that analysed, among other things, online usage and purchase behaviour, found that 82% of respondents would click on an ad if it was relevant to them. Big data allows companies to put the right message in front of the right person at the right time.
The beauty of big data is that it is scalable, making it a viable option for companies of all sizes. Large corporations can leverage insights to create national and international campaigns that will boost sales for certain branches and products, and even target types of spenders. By the same token, small enterprises can make the most of their marketing budgets with highly targeted campaigns, thereby increasing the likelihood of success.
ENDS
