How To Use Data To Grow Your Business
The way we consume and the way businesses sell has fundamentally changed.
As consumers, we are no longer limited to the shops on 'Main Street'. We can shop internationally from our couch, and businesses from anywhere in the world can reach us there.
We are constantly connected. The revised Manslow's Hierarchy of Needs is a tongue-in-cheek testament to that (it's funny until you find yourself in a hotel room with spotty wifi and low battery).
Our 'connectedness' is a huge opportunity for companies and advertisers so as we have all collectively moved online, any business serious about growth built a digital shopfront.
The fact that companies can now sell to anyone anywhere in the world means that scale is easier than ever to achieve.
There are many opportunities to get really big, very quickly with little start up cost: you no longer need a factory full of merchandise to start a business online. A rising tide lifts all boats, just think of the those making a living on local-gone-global platforms like Etsy, eBay, Ali Express, Amazon, and Shopify.
But moving from the real to the digital also resulted in ever tougher competition for everyone - for businesses and Instagrammers alike.
It's harder than ever to stand out from the crowd, to be seen, to differentiate, to acquire customers, to retain them, and to grow revenue sustainably. Companies have resorted to an advertising race to the bottom: it's not about quality or product fit, or even results, it's now only about having a presence.
Growth has become about throwing darts at a board with a blindfold. Eventually, just maybe, you'll hit the bulls-eye. But you'll spend lots of dollars getting it right.
The future is data.
It's ironic that so many are bothered by government surveillance considering how much of our online activity is already being tracked by companies whose profits depend on knowing everything about what we do, what we like, and who else we know. We tend to accept tracking as part and parcel of using their service or platform.
You may not be running Facebook or Google, but you can collect and use data like they do.
We take for granted that any business with a digital shopfront can track visitors and customers and use that information to grow sales.
Though all digital businesses can, few businesses do, use data to make more money. Enter data-based growth.
The foundation of data-based growth is simple: track behaviour, analyse it, use what you learn to iron out friction points and optimise your sales funnel.
A data-based strategy is powerful because numbers don't lie.
Neither does behaviour. As opposed to traditional marketing techniques like surveys and focus groups (where customers can tell you one thing and do another thing entirely), when you track behaviour online there is no room for disagreement. Only data.
You can use data to help customers buy better and buy more.
Your online shopfront sells your product, but more often than not there is room for improvement. A scientific, data-based approach to growing your revenue:
- Tracks how visitors to their website are behaving
- Identifies friction points in the sign up or transaction process
- Optimises the website to increase the number of visitors that become customers
- Uses behavioural data analysis to test and optimise how many customers transact multiple times
And that's just the beginning.
Collecting and using data to increase sales isn't rocket science, but it isn't easy either.
It's inevitable that over time every businesses will have an internal growth team, and that data will inform how it grows and in which direction. Today, it's an opportunity to differentiate. Considering how few businesses are taking this data-based approach to growth today, it's a huge opportunity for you to get measurable, visible results - quickly.
We'd love to talk to you about how you can use the data you have (or get the data you need) to get more traffic, acquire more customers, sell more of your product, and grow you bottom line.
Get in touch to start the conversation.