Owners and workers of small and medium sized businesses often wear many hats and their time is stretched thin. They are busy juggling their time to manage current customers, acquiring new customers, staying ahead of the competition and generally keeping up with the day-to-day running of the business. Dataanalysis for marketing and to make business decisions really doesn’t fall on the radar as important enough to portion precious time to. Usually owners rely on their gut instinct and experience to make decisions. Marketing is often a routine of what the company has always done, for example send a monthly newsletter, send an email for a current promotion, attend various tradeshows, run the same ads in the same mediums. It’s what has seemed to always work so why change it?
Checks and Balance:
As businesses grow and the customer base expands it becomes harder for businesses to know who their customers are. It’s easy to fall into the trap of thinking your customers and their needs are still the same as they were in the early days of starting your business when you had regular interaction with all your customers, or making assumptions based on the customers you speak to the most. By using analytics you can keep track of who your main customers are, what they purchase, how much they spend. Knowing this information will help you make day-to-day business decisions, what products to spend time marketing, and what customers react to which types of marketing.
Know where to spend your money and time
Measuring your marketing initiatives and knowing the ROI of your initiatives allows you to cater your campaigns to what really works and what will give you the best results for your money. For example if you are planning to do PPC ads on social media, instead of separating your budget between several different platforms you can use your web statistics to see where you are getting the most traffic and sales from you can focus your campaign to that specific platform, or distribute your budget so you spend more on the sites that give you the best returns. Also, if you’ve been spreading your time across several different social media platforms and through analytics you see that you are not getting traffic from one of them, you can make the decision to stop spending your time on marketing on that platform.
Smaller and more focused campaigns
By using analytics business owners can create more personalized campaigns. Instead of sending a promotion for a specific product to your entire customer database you can segment your customers based on past purchases. By targeting just the people who will be interested in what you are currently promoting you will overtime increase your open and click through rate for email campaigns and get more people to your site and increase sales. You can also use analytics to omit customers who have already purchased the product you are promoting or who have never purchased a similar product, or create a custom message for people who have purchased a complimentary product.
Analytics doesn’t have to be complicated or take a lot of time. Once you’ve started to use analytics and have your dashboards, reports, and processes set-up using analytics becomes second nature and a regular part of your marketing process. By focusing your energy and money on what really works as opposed to doing what you’ve always done you will start to see increases in your profit. Streamlining your marketing processes will improve efficiency, get a larger share of your customers’ wallet and reduce your marketing costs.