Tomorrow is the third “Get to Know Your Customers Day” of the year and a reminder of how crucial customer data is to business performance. We know data and customer data is a commodity for a reason. The insights you gain from customer data fuels better business decisions and efficient growth. How? If you knew what was liked, disliked, popular, unpopular, etc. would that affect decision making? It should because it affects everything from performance to revenue.
For example, Netflix made headlines recently because the streaming giant will be removing 2 of the biggest shows from its lineup. The prevailing headlines questioned why Netflix wouldn’t invest the money to retain its most watched shows. Data shows just how popular the shows are, but data also shows how much Netflix would have to spend to keep them. Money, that when analyzed against original productions, would be better spent investing back into the platform. This example might seem counterintuitive, but it isn’t. Netflix chose not to spend hundreds of millions on 2 shows because data insights supported the idea of more content with the same amount of money (content that has been proven successful in the past).
Getting to know your customers applies to every business with consumers. On a large digital scale, it’s difficult to reach out to each and every customer to get feedback, which is why you need good data analytics.
What it does for you
Getting to know your customers is a must and preparing for data is a crucial first step. Raw digital data is difficult to analyze manually and even you could, you’d never be able to keep up with the sheer incoming volumes. In order to even begin looking at data, you need to develop efficient data ingestion to handle data streams before it even gets to you because you can’t get ROI without good data.
Even data that’s seemingly useless can end up shaping better user experience, target streamlined personas, or identify new opportunities. You won’t know until you analyze the data. For example, utilizing different channels like social media requires different approaches. Optimize engagement and brand building process by researching user activity, testing scripts and images, and improving internally.
Multiple analyses can improve customer experience, update products, increase web traffic, streamline sales campaigns, etc. because you’ll be able to make informed decisions backed by customer data insights. But an insight is not the end of the data journey. It advised you to do more with the insights, which we know isn’t worth much when internal efforts aren’t consolidated. Do you need a bigger team? Do shareholders/investors/executives need a report? What’s the budget for subsequent projects? Which teams will be involved? Is there a timeline? How will information be delivered?
The fact is, internal practices can be analyzed too (and should be). Insights will reach different departments, teams, and roles in varying degrees for the same goal. This means every part of the data process, from collection to execution.
Make decisions and grow
Customer data should be a catalyst for change as it educates you on your customer base. So, the question remains: Do you have data that lets you know your customers? Do you know what to do with that data? Don’t miss out on crucial insights and start analyzing!