Using Analytics and Big Data to Your Advantage
Metagate May 2, 2015 Uncategorized
Keeping track of performance data, sales records and product engagement is something that most companies aspire to stay on top of, and with so many unique elements to consider; it can often be a daunting task to maximise the potential of this data. There are dozens of platforms online that make it easy for a business to track this data, and using analytics and big data to your advantage has never been easier.
But what is it that makes data tracking such a vital part of a businesses’ functionality, and how does it play a role in the performance of a business? Well the answer is actually fairly straightforward.
The Cause and Effects of Analytics
Whenever a business makes a sale, they’ve reached a consumer on a financial level. The business has provided a product or service, in return for an investment from an individual – and this individual’s data is of paramount importance. Let’s imagine that a company is selling a BMX bicycle. This product will appeal to fans of cycling, adrenaline-junkies and professional sportsmen and women.
Stereotypically speaking, it’s highly unlikely that an elderly individual without use of their legs will want to purchase the bike for their own use – but they may still want to purchase it for a friend or family member. What this means is that the company has a predominant target market (those individuals that fall in to the sporty category), and a secondary market (those with an interest in the product for third-party reasons).
That’s exactly where Analytics and big data come in handy. By monitoring the type of individuals that make purchases, a company can then develop a strategy to improve the chances of reaching like-minded people, with the intention of obtaining greater sales of their product/s. Marketing strategies can be developed, sales techniques can be introduced and a much wider audience can be reached as a result.
Compiling Analytics and Big Data
Every time a sale is made, the data involved can be collected. This data goes beyond the final sale however, and even visits to a website can be taken in to account. Information on elements such as the age of a person visiting a site, their location and even the amount of time that they spent browsing products is vital – as it allows a business to tailor their approach to their most popular market.
After a while, categories can be established, and the most typical include:
- Geographical locations
- Age ranges (16-24, 25 to 40, 40 to 60, 60+)
- Popular pages
- Website reach (how the website was discovered)
With these analytics in mind, a business can begin to develop a strategy to actively target the most popular audiences, without alienating the ‘casual’ buyer. If a website sells BMX bicycles as mentioned above, then it won’t be maximising its potential for sales if it offers discounts to elderly individuals; whereas it could benefit from offering the same promotion to a younger, sportier audience.
That’s what big data allows for. Where analytics are the individual interactions and engagements of customers, big data is a compilation of this information, and a method that allows a business a greater understanding of trends, patterns and human behaviour in general.
Once this data is understood, it’s a simple process for a business to target their sales and marketing efforts to a responsive group of individuals, and the result is often a much greater rate of sales. That doesn’t mean that it’s impossible for a business to operate without understanding their analytics – it simply means that they will function far more efficiently with these techniques considered.
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