Technology has made big data an invaluable tool for businesses looking to maximize on their marketing efforts to ensure the success of their enterprise. The data available now goes beyond age and gender.
Now credit card transactions, mobile phone locations, and even smart homes can give businesses more insight than they have ever had before.
Data Analysis
There are many insights to be gained from data analysis although many businesses fail to achieve this at a profitable standard. At Michigan Technological University applied statistics teaches students how to collect and interpret data for the profitability of business. Marketing data analysis collates all the available information in order to devise and implement a marketing plan. This is vital for the success of any business and can not only guide businesses in how to proceed, but also highlight weakness in past campaigns.
A part of data analysis is learning to understand your customers and thereby identifying your potential customers. Collating information on demographics such as age, gender, location etc. helps business to get an insight into what customers want and how you should communicate with them.
Targeted marketing campaigns running off the back of robust data analysis will perform with a greater return on investment than non targeted campaigns. Personalizing and targeting all your communications will also help to build customer loyalty.
Another key component to data analysis is learning and understanding the market you are a part of. Seeing market trends and fluctuations can help businesses successfully predict and prepare for future changes. This in turn allows for marketing plans to be set in advance and gives businesses a strong competitive edge. By analysing customer loyalty and return on investment, businesses are able to improve results in the future.
Making Adjustments Based on Market Research
Data alone is only useful if it is turned into insights that can lead to an adjustment in marketing strategies and objectives. Adjustments can vary and include changes in content for your audience or indeed the channels you use to deliver your message.
Any changes can then also be analyzed in order to tweak and adjust further until you have your campaigns running at a maximum ROI. Consider options such as the frequency of communications or increasing the amount of interaction with your customers.
Focus on The Most Profitable Customers
With successful marketing initiatives it is important to retain focus on the 80/20 rule. This is to say that as a rule of thumb, 80 percent of your customer base will be responsible for 20 percent of your revenue. This in turn leaves the other 20 percent of your customer base, bringing in the remaining 80 percent of revenue. Therefore, it stands to reason that focusing your marketing efforts on the 20 percent should enable you to achieve a greater return on investment.
Indeed, this 20 percent of your database should be where you focus your attention on building a lasting and profitable relationship. Develop new and creative ways of building on customer loyalty as well as devising ways of cross selling and maximizing on the relationship. This is not to say that businesses should turn their back on the remaining 80 percent, for they still represent 20 percent of your profit and companies should look to nurture all profit-making avenues.
Stay Abreast of Changes in The Market
Ensuring that your business, product, service and indeed marketing initiatives are current, is vital to the continued success of any enterprise. Stagnant and stale offerings will only serve to hurt your efforts. Frequent competitor analysis can be paramount in providing insights into new and emerging markets and trends.
Proper utilization of digital technologies, as well as constant research into different options, can assist businesses in avoiding becoming stagnant. Marketing is a constantly evolving initiative and new channels of communication are being established on a frequent basis.
Consistency is Key
Marketing can often be about trial and error, but when you find something that works, stick with it without allowing it to become stale. As an example, should you be attempting to build an organic social media presence then consistent posting of relevant and quality content is paramount.
However, should you start to see a drop in customer engagement on your social media page, then it’s time to think of new ways to engage your customers and increase the level of activity. Market insights can be helpful here to illustrate the types of communications that are gaining the most amount of traction for your competitors. Taking the proper steps to rectify inefficiencies can help produce profitable results.