The Power of Data: 8 Ways to Leverage Business Data for Higher Profits

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The global market for big data will be worth approximately $77 billion by 2023. In a business world that’s tech-driven and customer-centric, using big data is a necessity. Interestingly enough, just about half of all businesses have invested in business data as of today.

That’s largely understandable! Previously, data technology wasn’t attainable by small businesses as a result of budget restraints. Besides, most small businesses didn’t have access to the expertise required for big data technology.

Things have changed. Today, there are numerous affordable self-service tools that are easy to use, even for those without a tech background. Small businesses can now access customer data that they can use to boost their sales.  

Data for business can be utilized to enhance revenue in many different ways. Below, are eight ways you can do so:

1. To Understand Your Customers Better

Business data can offer you better insights into your target audience. You can gain a clearer understanding of your customer’s pain points, habits, shopping behavior, what makes them refer a business to other customers, and even which product they’ll buy next.

With all this information, you can interact and engage with your customers more accurately. You can segment your customers across different channels and learn where they are in the sales funnel. In short, you can target your customers on the right channel and at the right time. 

Moreover, this information helps you analyze customer feedback so you can improve your products or services. 

2. To Price Products More Accurately 

Some small businesses rely on trial and error when pricing a product or service. A product information management system can provide information that helps you make informed decisions, such as the most efficient pricing strategies. This is achievable through collecting insights on such factors as client behavior across different locations, seasons, product groups, and the current objective of your marketing campaign.  

Once you have reviewed this data, you can come up with efficient pricing strategies. 

3. To Identify Trends

Business data helps you keep track of patterns, behaviors, and the economic climate. With this information, you can predict what is going to happen in your industry in the future. Thus, you can begin to prepare for what customers will demand.

If the outlook does not look promising, you can decide to start to pivot. 

4. To Accurately Forecast Sales

One of the biggest advantages of sales data analysis is that you can predict future sales based on your historical data.  Historical data is different from ambitious goal setting in that you can use it to get a realistic picture of what your team can earn within a specific period. 

When you can forecast what your revenue will be, it becomes easier to allocate business resources and manage your workforce more efficiently. It becomes easier to cut waste and respond to changing market conditions more accurately. 

Historical sales data can also allow you to compare your business performance with industry averages. This way, you can know whether you’re on track or not. In case your sales numbers aren’t aligning with industry averages, you can take necessary measures to identify the cause of the problem and make the appropriate corrections.

5. To Assess Performance and Create an Incentive 

Big data helps sales managers create a sales target for each sales rep and compare their current performance with their past performance. If a particular sales rep has unusually low performance, you can focus on training and coaching them to improve their performance.

If a sales rep has very good performance, the sales manager can acknowledge and reward the rep for their hard work and ask them to train their colleagues on the tactics they used.

Moreover, big data helps you know how your sales reps usually spend their time. You can identify which activities yield the best results when it comes to generating revenue. 

6. To Increase Retention Rates

Increasing your customer retention rates can have a massive impact on your sales. Big data helps you know who your big buyers are so you can focus on taking care of them. The aim is to boost customer satisfaction and improve retention rates.

Of course, you’re already aware of your largest accounts. Using transactional data, however, you can identify other accounts whose performance is growing rapidly and start to prioritize them too. This helps you retain more customers and, consequently, get higher revenue.

7. To Keep Track of the Competition

There are many free tools that can help you see how popular a product or brand is. Social media analytics tools can also help you gauge the popularity of a competing brand and learn what others are saying. 

With such tools, you can scope out your competitors. For example, if a competing brand is receiving more social mentions and social media coverage, you can compare their content and campaigns with yours and see what exactly they’re doing better than you. You can then make the necessary adjustments to start performing better.

8. To Improve Your Customer Service

No matter what industry you are in, people will always demand stellar customer service. Business data can help you segment your customers and match the best sales reps to particular demographics, ensuring that all your customers get the best service. 

Business Data Can Help Take Your Business to the Next Level

Business data can provide real-time metrics that can greatly help you increase your revenue. It’s the reason that every small business should invest in it and leverage its power.  

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