A beginners guide on turning data into action
Before we dive into how to turn data into action, let us first clarify the critical benefits of collecting customer data in the first place.
Over 2.5 quintillion bytes of data are generated every single day. Imagine if you properly analyze the information that pertains directly to the usage behavior of your customers?
The data collection makes it possible for you to meet consumer expectations by personalizing your communications with them, pitching them products they are more likely to purchase.
Data makes it easier to understand which products and services your customers want from your company and how they prefer to engage with your brand.
Collecting the IP addresses, email addresses, and phone numbers of the people who have interacted with your company improves your lead generation strategy.
Data helps to become crystal clear on which of your marketing campaigns your target audience responds to the most.
Now that we understand some of the many benefits associated with collecting and utilizing customer data let’s address the steps that it takes to transform that precious information into action to keep your customers satisfied.
1. Know what to measure
Even when companies work in the same industry, each one is different from the next one, and they can only optimize their business based on the data they can measure and access.
E-commerce websites most likely would want to know the places on their sites where people most frequently drop off, the channels driving the most conversions, the look-to-buy ratios for individual products and categories, and landing pages that need improvement.
2. Ask informed questions
Formulate straightforward business questions moving into your data analysis by asking company stakeholders for information based on the relevant data you derive. For example, if you haven’t prioritized the data in your warehouse beforehand, how would you know if the questions you have are off-base or ones you could have quickly answered yourself?
3. Drive action with segmentation
If you are serious about taking action with your data, you need to push for segmentation that allows you to group visitors by the attributes that they all have in common. Then, drill down into those similarities and find unique ways to go beyond mere generalizations.
It is essential to decide which segments to study based on the core business question you are trying to answer for. Which elements of your segmentation will help you enhance your understanding of how your customers are behaving? Then, take action on this information to set up a proper optimization plan.
Digital analytics tools such as Google Analytics come equipped with plenty of built-in segments that you could ask for and even give you the added flexibility to customize them as you see fit.
4. Visualize your message
Keep in mind that the way you present your data carries a lot of weight on just how successful your outcome will be. It is way too easy to completely forget about the presentations that only carry a boring collection of numbers and words.
Create clear visualizations that promote cognitive engagement and aren’t instantly sleep inducement. Articulate a data story that the ‘why,’ ‘how,’ and ‘what’ questions. This will transform your data into the type of insights that become profitable business decisions when put into action.
5. Contextualize your data set
In this data age that we find ourselves in, it is not enough to just stockpile information and remain stuck on personal data-driven opinions that are not open to new strategies and approaches. Instead, it is an everyday necessity to gain a comprehensive understanding of the context that leads to making better decisions.
Be sure to establish the appropriate context for the data you are analyzing by understanding what the numbers mean and their importance, whether the data affects your business directly, how the data was collected, and whether it can lead to terrible business choices.
6. Plan for optimization
When putting data into action, be sure to define the problem, measure relevant data, analyze correlations and patterns, make improvements based on insights, and control the change by deploying (A/B) tests and keeping your eyes on KPIs.
7. Data integration
The more integrated our data sources are, the quicker you can make accurate and effective business decisions, enhance your customer understanding, and offer great insights.
Now you can get started putting data into action with a confident approach to organizing and utilizing the information stored in your corporate data warehouse.