How to Maximize the Use of Data Analytics for Your Online Business
We always hear about how data is becoming increasingly important. But enormous amounts of raw and unstructured data don’t have value. This is where data analytics comes in.
Data analytics has changed every industry in the world, particularly online businesses and e-commerce. Businesses can leverage data analytics for data-driven decision making, reducing costs, and staying on top of market shifts.
Despite this, a lot of online businesses are still failing to maximize the multiple data streams that their business generates. So here are some steps you can do to fully reap the benefits of data analytics for your online business:
Learning data analytics
As mentioned above, data analytics allows companies to arrive at data-driven business decisions. But this cannot be achieved without business leaders understanding the insights to their full extent.
Management consulting firm Navigate’s Phil Schmoyer told CIO that even if you hire an analyst, you should still be knowledgeable in data science and involved in both the planning of data collection and the interpreting of the data. But this requires learning the basics of data science.
Most of the online tools used currently are very intuitive and will help professionals digest a wide range of information. Each one will often also come with a tutorial. Even for smaller business owners, there are platforms like Udacity and Dataquest that provide tiered data science learning programs. This allows users to get a grasp of the different aspects of data science.
For professionals that already have online businesses, they also need to be aware of the different ways data can be collected. There are over 800,000 students currently taking data analytics courses on Udemy, and the most popular tutorials includes how to use Python and Excel to collect important pieces of information. And most of these students will already have flourishing online businesses – they just want to increase their skillset to help them make more informed decisions. Leveraging data analytics for your business requires a strong knowledge foundation for you to properly optimize its use. Learning online is quickest and most cost efficient way to get up to speed.
Enhancing Customer Profiling
Data transformation in e-commerce provides insights and innovation necessary for growth. This means opening up new and relevant data streams to optimize insights.
Deduplicating your customer base list is just a baseline. To add value, you should enrich your information with third party tags and data to discover any opportunities for cross-selling and up-selling. Email sign-ups and social media integration can help with deepening and segmenting your customer profile. Most social media profiles currently include meta tags including geography, job titles, industry, and other behaviors which can supplement your customer profiles. Data analytics can then enable you to recognize high-value customers and improve sales conversions.
Improving Customer Experience
The overall customer experience determines retention and brand loyalty. Some businesses tend to emphasize data collection and not data analysis. It’s not about the amount of data a company collects but how the company utilizes it.
Data analytics is about asking the right questions to get the best answer in order to strengthen the connection between your customers and your site. For e-commerce, that should always be “is the customer satisfied with your product/service?” In our post on the ‘10 Tips For Effective Competitive Intelligence Gathering’, we explained how it is best to avoid falling into the trap of copying your competitors. Find out through your own data how you can provide a better journey and add value to your customer’s needs.
As online markets continue to grow, employing effective data analytics will soon be what makes or breaks a business.