EVERYONE in your business will want to take credit when times are good, when implemented changes result in increased sales, higher conversion rates, and happier customers. Your marketing team will attribute the credit to their recent awareness-raising campaign, your R&D team will attach the credit to the new products they just released, and your social media engineers will firmly believe your bout of success relates directly to their community-building efforts.
When the outlook appears rosy and you’re looking to figure out why, every one of your employees will do their best to push their contributions front and center.
Sifting through the noise and determining who’s actually contributing to your business’ success is imperative if you’re going to keep your hot streak going. By figuring out who contributes the most to your goals, and which of their campaigns is doing the trick, you will be able to focus your efforts on your top performers and give them preferential treatment on the resources they need.
But how do you determine who’s succeeding and who’s taking credit they don’t deserve?
Enter Customer Analytics
Before the days of the internet it was very difficult to pinpoint what was working and what wasn’t working within your business, and that’s because you couldn’t isolate variables when measuring your success. You couldn’t say, with utmost assurance, that “X marketing campaign” resulted in a 30% increase in sales or “Y product launch” was 50% better than we expected because of its new “Z feature.”
Now, with the internet, you can isolate variables utilizing this level of precision, as the internet lets you collect a massive amount of customer analytic data which can be broken down, segmented and isolated according to any variable you could ever want. Using widely available, inexpensively acquired online customer analytics data, you will be able to:
- Quickly compare the data you accumulate with historical data to identify trends and to place your new data in context. Raw numbers don’t tell the whole story, without historical data you will never know whether your sales represent good news, bad news, or are aligning with your company’s projections.
- Determine where your data came from. For example- whether your sales are spread pretty much evenly among a large number of customers, or whether the bulk of your sales derive from a small handful of big spenders. By identifying your top customers, you can not only focus your efforts on retaining them, but you can profile their demographics and shift your marketing efforts to attract more individuals like them.
- Whether one particular marketing campaign produced a disproportionately large (or small) conversion rate compared with others.Once you know which of your marketing message produces the greatest return on your investment, you can then funnel all of your resources into that campaign instead of wasting time, money and attention powering underperforming efforts.
- Determining whether small variations on an already successful marketing campaign will increase or decrease its effectives. Through utilizing customer analytics data you will find that often changing one element of a marketing message (such as just one word of its copy or its accompanying image) can produce unexpectedly large changes in that message’s performance.
- Where you lose customers during your sales funnel. If you find that the majority of your lost potential customers all drop off at the same page of your website, you know optimizing that page will increase your overall conversion rate.
- Learn whether certain marketing campaigns result in greater sales of one product over another. For example, often one marketing campaign will attract customers looking to buy Product X but not Product Y. This form of customer analytics data will enable you to further focus your marketing campaigns and sales funnels to maximize their output.
Properly collected and utilized, customer analytics allows you to manage and develop your marketing efforts with a massive amount of precision, allowing you to not only learn, for once and for all, who contributes the most to your business’ success, but to improve those employee’s output in a manner previously unthinkable.
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