Businesses are always looking for ways to conduct more meaningful interactions with their customers. Value-adding to business transactions with customer information can help an organisation streamline their operations. The objective is to ensure that any customer approaching the business to purchase a product or service is must complete their transaction.
Customer data analytics are part of the big data management umbrella. Big data is defined as large volumes of information that come in both structured and unstructured formats. Big data processing streamlines the pools of information down to relevant data businesses can use to optimise their processes.
Understanding what customer data should be collected and their relevance to making business decisions is imperative in today’s business environment. Efficient technology use and data management have become the core of successful organisations across the modern corporate landscape.
What is Customer Data?
Customer data comprises the information actual customers provide either directly or indirectly to a business. This could be as simple as the name, email address and password to form an account or micro-movements on an eCommerce storefront.
Organisations have understood the relevance of moving their activities online. The success of the eCommerce movement has allowed technology to rapidly develop. Most eCommerce site-building tools offer the ability to track and record all visitors and their movements on the platform. The sheer volume of the data requires separate data management software and the skillset to manage the data. This form of unstructured data is also referred to as “Big Data”.
Micromovements include:
- Everything from a login
- Viewing a product
- Lingering on the product page for an extended period of time
- Adding products to cart
- Deleting items to even the duration of time taken to abandon the cart
Why Analyse Big Data?
Customer data analytics or big data management can revolutionise how a business looks at its operations;
1. Make Decisions Faster
Analysing customer data normally happens on a near real-time basis. This allows businesses to understand where changes need to be made and incorporate them as quickly as possible. If customers are struggling with navigating the site, tracking micromovements can help determine where the problem lies. Additionally, when data determining an organisation’s target demographic is procured, businesses can add and remove features, themes and information based on what would be best suited.
The agility provided by big data management allows businesses to generate more revenue through guided decision making.
2. Find Breakdowns
Businesses are constantly learning about their operations and the practicality of their platforms. Operations from a backend may be moving smoothly, but the organisation is unable to pinpoint why sales are underperforming. Tracking customer information helps businesses understand where successful transactions are occurring.
Customer data analytics allow businesses to find common ground between failing transactions. Optimising customer service is significantly easier with this information. Organisations can tailor their approaches to maximise the procuring of relevant feedback from these customers and possibly address concerns with sales.
3. Pinpoint Your Target Demographic
Customer data analytics tell businesses where they are making the most money. Customer data analytics explain sales by dissecting successful transactions and understanding unifying factors. The age group, gender, areas where sales occur and income brackets can all be deduced through big data management.
If a business needs to concentrate its marketing efforts towards certain geographical locations or introduce successful collaborations with other businesses, this information is a critical guiding point.
4. Diversify Business Opportunities
When businesses invest in customer data analytics, they are able to identify room to branch out. The data provided helps understand what your customers are looking for and where you could offer complementary products to their likes and interests. If a company has success with vending to women between the ages of 20-25, they would be able to introduce new models that appeal to the same demographic.
If an organisation is ready to venture into new markets, customer data analytics can offer reassurance. When a business is able to complete transactions successfully with individuals outside their target demographic repeatedly, it might be a green light to start a new venture or diversify existing product/service lines.
5. Operational Agility
Businesses invested in customer data analytics are able to detect growing patterns of demand or slow periods. Customer data analytics helps keep businesses stay aware of visitors’ frequency (new and returning customers), the demographics surrounding the new visitors, and allows them to customise internal operations accordingly.
Understanding the information surrounding frequent customers helps businesses plan inventory, staff and resources needed. Minimising overall waste is a key component of successful business operations. Offering more products or services than needed consumes resources unnecessarily and customer data analytics helps businesses plan more efficiently.
6. Precise Decision Making
Customer data analytics focuses on bringing accurate information to aid the decision-making process. The data procured is based on actuals. With every customer interaction, the data pool grows, and this information is processed for palatable consumption by an organisation.
With real-time information offered to organisations and processed as is, there is little room for error. Better decision making is easier when using accurate information for a basis.
7. Measure Success on a Micro Level
If businesses are trying to generate interest and traffic for their platforms, using customer data analytics can offer a more accurate picture of whether efforts are successful. Especially in terms of marketing endeavours, even without successful transaction completion, a business is able to determine whether awareness was generated as expected. 84% of the businesses that work towards improving their customers’ experience witness a boost in their revenue (Forbes).
To stay relevant and successful in any industry, understanding how consumers perceive operations and manoeuvre is critical. Customer data analytics help businesses understand this information at a grassroots level. The raw data delivered in real-time helps businesses make the right decisions. The end result is increased revenue, streamlined operations and investment in enhancing organisational success.
Businesses investing in customer data analytics have a more accurate picture of where their money is coming from. If an organisation is determined to prosper within their industry, this information is integral.
