How Can Collecting Consumer Data Enhance Your Business
By Alon Ghelber, CMO, Revuze
With all the technology we have now, there are many ways to collect data on our customers. You can keep track of how much they spend with your company, how often they visit your site, their overall opinion of your business, and much more.
Why should you care about consumer insights for your business? You can use it to improve your business right now and in the future. It was reported that 76% of clients believe that companies should know their needs and expectations.
The data will give you insights about your clients that will provide you with an upper hand if your competitors aren’t using it. We’re going to tell just why consumer data is essential to enhance your business.
Improves Customer Experience
When clients are happy with your company, they’re likely to come back to shop with you, which is what you want. Data can assist in creating the best experience for them. Firstly, when you know their names and other information, you can create a more personal interaction.
Another type of data is sentiment analysis, and this is when a text is processed to understand whether it’s positive, neutral, or negative. The wording you analyze is those of reviews or comments about your business. When they’re mostly positive, you’ll know your customers are happy with their experience.
However, negative comments will give you insight on what isn’t working in your company. You can then look into ways of solving this problem, like training employees, making your website more user friendly, or improving products. Then, your customers should have a better experience shopping with you.
Helps to Customize Marketing Strategies
Data-driven marketing is a great way to attract new customers and keep loyal ones coming back. Consumer data can be used to refine your approach to marketing. You should get some understanding of who your customers are demographically from data.
This can be used to know which types of people to reach out to gain new clients. You won’t have to waste time contacting those who aren’t likely to shop with you, and you’ll spend more time on the ones that fit your target market.
To attract customers to return to your store, you can look at their shopping habits, such as how much they spend, which products they buy, and how frequently they shop with you. Based on this, offer them deals. For example, if they usually spend about $50 every time they come in, give them a coupon for a discount when they spend $60 or more.
For this customer, this amount is reasonable and not too much to spend. They’ll want to shop because they know that next time it’ll cost less. Although you’ll be giving them a discount, they’re more likely to get into your store to spend money now with the coupon, which is better than them not coming back at all.
Allows You to Predict for the Future
Consumer data can be used to make predictions about your business. You will know how often you get new clients and how many loyal customers you have. This is important to see if you can rely on loyal clients to support you, or if you should spend more time investing in getting new ones.
Also, you can see how promotions worked for your profit during those times. If you need to boost sales, you know that a certain promotion can be used again. You can understand if your pricing is just right for your customers, or if you can increase the price.
Data can inform you of who your most valuable clients are. It’s possible to focus on them and offer them special offers to keep them loyal to you.
There are many ways to understand how your business might look in the future based on customer data. Knowing this before it’s too late will assist you in being proactive with your business decisions.
The Bottom Line
We live in a world where you can obtain any information you want within a couple of clicks. Although it takes a little bit more to figure out customer’s data, it’s a lot easier now than ever before.
Whether you’re a huge corporation or a small business just starting out, knowing information about your clients will improve your company. It will enhance your customer’s experience online or in person. You’ll be able to market to clients more effectively when you know more information about them. Lastly, consumer data can help predict what might happen next to your company.
The more you know about your customers, the better you’ll know how to run your business today and in the future.