The term “big data” sounds scary to many SMBs. Big data, however, isn’t just for big corporations. Practically any business can benefit from using big data to learn about their customers. The better you know your customers, the more effectively you can provide the products and services that they want to buy through better targeting.
You may have some inaccurate assumptions about how much money your customers will spend on products and services. Or maybe you’re exactly right. But you can’t know the truth until you take a close look at the data.
Analyze purchases by item and cart to determine how much your average customer will spend. You may find that your average customer doesn’t want to spend more than $50 at a time. Some of your customers, though, may tolerate spending $150. Knowing the diversity within your target market can affect not only what you choose to sell but how much you choose to charge for products and services.
Keep in mind that more data leads to a deeper understanding of your customers’ shopping habits. Ideally, you should pull information from all of the e-commerce platforms that your business uses. The data could come in numerous formats, so it makes sense to find ETL tools that can draw information from several sources, reformat them, and load them to a single destination. At that point, you can use business intelligence apps to analyze purchases regardless of where customers buy them.
As of March 2020, 88.05% of online shopping carts were abandoned before customers completed their purchases. What prevents people from following through with their orders?
Analyzing big data could help you discover barriers to customer success during the shopping process. By looking at thousands or millions of incomplete transactions, you may find that 75% of your customers abandon their carts when they find out that they have to pay for shipping or when prompted to provide their addresses.
Upon closer inspection, you may discover that a lot of customers disappear because you make them fill out multiple forms for their shipping address and confirm their payment information. Perhaps this indicates that an auto-fill feature might help your customers complete more purchases–an insight you may never have received without looking at the data.
Getting to know your customers better often means learning about their demographics. Age, race, gender, level of education, household income, and other factors can make a big difference in how you choose to communicate with your ideal customers.
More specifically, using data to learn about your customer demographics can help you decide which marketing techniques will influence them to spend more money. College-educated professionals with high incomes may want a peaceful advertisement that displays your product’s luxury. Young people with less money might respond better to ads that use humor to grab their attention.
As you collect data on what marketing techniques work and don’t work, you can hone your approach to connect with your audience in a unique way that builds your brand and boosts sales. You can’t improve your approach to marketing until you have data that tells you what your customers want to see and hear.
You won’t get the amount of data that you need to make informed decisions by asking customers to answer surveys. You need big data that clearly shows how people respond to all of your advertisements and marketing campaigns. A snapshot of consumer preferences might help improve your outreach. Big data helps ensure that you create the right materials that drive sales.
Current sales and customer searches on your website may indicate what many of your customers will want to buy in the near future. Imagine trying to comb through every on-site search. It’s an impossible task for the human brain. Big data and analytics tools, however, can uncover trends that you never expected.
Your competitors already use big data to learn about their customers and make informed business decisions. Don’t wait any longer to make big data a part of your business plan. The sooner you introduce data to your decision-making process, the sooner you will learn how to connect with and motivate your customers.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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