Having a Data Analytics Solution is absolutely pivotal for attracting customers, retaining them and keeping them engaged. It also provides critical insights on how to improve further based on data captured and observed customer behaviour.
For any business model, there are 3 high level considerations :-
Customer Acquisition
Customer Engagement
Customer Retention
For the purpose of simplicity, let us assume that you have a website selling products. In terms of of Customer Acquisition, you need to know where your customers are coming from.
Data Analytics covers every step of the customer journey. It will give you all details about where your customers have come from.
Data Analytics will help you understand your Customer Acquisition model.
Are they coming mainly through display ads and not through other channels?
This means that your site is not shown in the top results in the search engine.
This, in turn, would imply that your site is not optimized for organic search. So, you should work hard on the SEO for your site.
This same data will also imply that your display ads are pretty good. So, you can increase focus on display ads so that you get maximum results from it.
This is just a simple use case which depicts how influential Data Analytics can be for your business.
It also gives information about where your customers are - let us say, our customer base is in the United States- you’ll know which states, cities, regions have the majority of your customer base and you can strategize accordingly.
Next, we’ll take up Customer Engagement & Customer Retention.
Customer Engagement & Customer Retention are interdependent in terms of the outcome. If the customer is not engaged, then retention is not possible.
Customer Engagement should be highly effective and well planned.
If your Customer Engagement initiatives are not impressing your customers, then having awesome Customer Acquisition will not be of any use.
Users will land up in your site but will go away without buying your products.
It means that your website is not generating any revenue.
Data Analytics will give you the exact points where the user decided to go away from your site giving you the user path and funnel.
Using this data, you can work on the weak points of your user funnel and come up with an effective Customer Engagement & Retention strategy.
Data Analytics gives you data about which pages, products are the most popular in your site.
This gives you vital information about where your strengths and weaknesses are.
You can work on increasing the engagement of your strong products thereby augmenting the revenue earning potential of these products.
Similarly, you can work to boost and upgrade the identified weak areas of your site.
As you have seen from the above example, Data Analytics gives vital insights into every aspect of the Customer Journey, Customer Demographics, Customer Acquisition, Customer Retention as well as Monetization.
To summarize, by using the insights provided by Data Analytics, businesses can discover customer behaviour, product patterns and new opportunities. Such outcomes can help them immensely and keep their businesses competitive and future ready. By putting customers at the core of data analysis efforts, businesses can gain a competitive edge, encourage customer loyalty and help drive success in these competitive times.
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