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Key Ways Brands Underutilize Data Analytics
According to research, the vast majority of companies underutilize data that is already available to them.
Fremont, CA: Despite the extensive use of analytics dashboards and data-driven KPIs throughout the C-suite, most senior marketing teams primarily use data for backwards-looking analysis to assess success rather than creating analytics dashboards to drive future initiatives and planning. As a result, the vast majority of companies underutilize data that is already available to them.
Without diminishing the value of using data KPIs to evaluate past marketing performance, re-engineering a few of the data points and what users can learn from them to understand the target audience better and optimize a campaign that speaks more effectively to their needs can often yield vast results untapped value.
• Knowing Your Target Audience
Data science allows for the study of vast amounts of data using advanced statistical techniques, allowing for discovering trends among customers. Demographics, regional information, product usage, and behavioural traits, for example, may all be utilized to evaluate and categorize customers. On the other hand, design thinking techniques enable us to conduct in-depth analyses of customers and, as a result, discover the essential characteristics that can be helpful to segment them according to their requirements and build personas. When both are beneficial together, it is possible to detect patterns of similarity and dissimilarity, taking into account essential elements and comprehending the relevant features that differentiate and characterize them, allowing for the construction of more effective campaigns.
• Optimizing Acquisition Cost By Predicting Lifetime Customer Value
Companies may use the CLV to determine how much to spend on a client based on the expected return and the various tactics and levels of investment that are worthwhile for each customer profile, such as discounts, to gain new consumers with more excellent value. By segmenting customers based on their lifetime values, it is possible to reduce acquisition costs by investing more in campaigns that target the leads who will most likely generate more revenue throughout the life cycle and cutting costs from those who will most likely not generate financial value, as needed.
• Building An Effective Propensity Model
Marketing teams may boost conversion rates by identifying the incremental impact of being targeted and targeting those individuals for whom the total reaction is greater with scalable and actionable propensity ratings in hand. Also, tactics such as giving more significant discounts for individuals who have a lower propensity score and require more incentives than those that will buy anyhow can get devised.
• Monitoring And Acting On Consumer Sentiments
Due to the scalability of analysis, it allows sentiment analysis in real-time without sacrificing accuracy, which has become a vital tool for marketing efforts. As a result of this research, can act on customer input, such as what they want and how they feel, and customize marketing messages to appeal to the target audience.