What Every Business Person Should Know About Analytics
For any business to succeed, it needs to continually acquire and convert new customers, then engage and retain them. The proliferation of big data, made possible by advances in technology, the internet, and social media, have allowed businesses to capture large amounts of customer and operational information. Analyzing this data gives business leaders’ visibility into every facet of their organization, from marketing to operations, and helps to inform actionable outcomes. Every business can benefit from becoming more data-driven; it helps them understand their customers, perform operations more efficiently, and guide decision-making.
Forbes recently looked at some of the key customer analytics used by business leaders today:
Customer Satisfaction Analysis
It’s no secret that customers who are happy with your product or service are much more likely to give you repeat business; assessing whether or not you’re meeting their expectations is a valuable exercise. Interacting with them on social media, or through a combination of quantitative and qualitative surveys, can help you gauge their satisfaction.
Customer Lifetime Value Analytics
By assigning a lifetime value of each customer to your business, you can look beyond individual transactions and assess their long-term value – how long they’re likely to stay a customer, how much and how often they’re likely to spend — and shape your marketing efforts accordingly. You can also examine ways to increase the length of the relationship and maximize its value.
Customer Segmentation Analysis
Your customers are a collection of individuals, not a homogenous group, so rather than trying to be all things to all people it would benefit your business to segment your customers into sub-groups and target your efforts accordingly. Demographics, purchasing patterns, and ways they engage with your business are some examples of how you can segment your customers. The internet provides a vast source of customer data for you to mine and analyze, just be careful not to get too granular.
Sales Channel Analytics
Knowing where your sales are made and what channels generate the most profit will help you better target your resources more efficiently. If, for example, your product is available for sale in-store, online, and by phone, sales channel analytics will attribute each sale to its channel and subtract the costs it took to generate it. Do keep in mind, however, that customers may have been exposed to your product through one channel and purchased it through another – in-store and then online, for example.
The process of extracting online behavior data and analyzing it to optimize the user experience on your website and increase engagement, conversion, and sales. There are a number of tools, such as Google Analytics, that can dive deeply into your website and measure and report on user behavior and engagement.
As big data continues to evolve, many companies are looking for specialists who can integrate an organization’s technical needs with its business goals. The University of Alabama at Birmingham’s Collat School of Business arms students with the business acumen they need to become well-rounded managers through the Masters of Science in Management Information Systems degree.