Cashing in your data

Ok, it could be the title for the next daytime TV series, but the potential boost to your profits should hopefully interest you a lot more. Why? Because your data will tell you where you are losing out on sales and not optimising your margins.

The most valuable data is your own

There is a whole world of useful data out there, but by far the most valuable data is your own. Let’s stop and think about this for a moment. Your data is worth more than your competitor’s, the Bank of England’s or even the London stock market’s data. How can this be? Well, just imagine how big your company could grow if every single decision you made was the most optimal one. Just imagine how fast your sales would grow if you knew exactly what to say to every potential customer in order to win their business. Finally just imagine how productive your business would become if you hired all the right people and ran it in the most optimal way possible.

Why isn’t everyone doing this?

Sadly, few companies succeed in cashing in their data. It is a difficult activity for many people to convert data into insights and insights into action. What’s more, it is not intuitive! Digital business data has really only been around for 20 years and was complicated to analyse until about ten years ago. In short, millions of years of evolution has not prepared us to interpret data easily and we rely on software tools to convert this into more graphical outputs that we can make sense of.

Ok, so how do I extract the value in my data?

First of all you need to find all the login details for your:

  • website statistics e.g. Google Analytics
  • app statistics e.g. Google play store and App store (if you have an app)
  • sales data e.g. your CRM system
  • marketing campaign data
  • social media data
  • product returns data
  • survey data
  • expenses data

Next you need to interpret that data. (This is where you might benefit from bring in a third party)

  • website statistics
    • customer purchase journey through your website
      • where customers are dropping off your website (e.g. human friction points, technical problems etc)
      • the route your customers are taking to make a successful purchase
      • the number of devices they use within the purchase journey (e.g. starts off on a desktop, but gets transferred over to their mobile phone to verify an emailed link etc)
      • the device most popular with your customers
      • their geographical location, age, gender. How does this compare with existing customers
      • time spent on each page
    • how are your customers finding you
      • referral sites they are coming from
      • search terms they have used
      • paid advertising referrals
      • website address entered directly
  • app statistics
    • app store rating
    • download ratio to existing and previous customers
    • when and where is it used
  • sales data
    • what sales channel offers the best return
    • which products offer the best return
    • which sales staff offer the best return
    • which day of the week leads to the best returns
    • which month in the year leads to the best returns
    • Identify the above five points but for the worst return
  • marketing campaign data
    • which campaign has delivered the best return
    • which marketing activity is producing the least return (social media is notoriously hard to gauge, but they do provide touchpoints that reminds potential customers you exist) (How many touchpoints does your target audience need before making their first purchase?)
  • social media data
    • number of likes, followers, views and shares
    • revenue generated directly from social media
    • level of engagement your social media visitors receive e.g. comments, likes etc
  • product returns
    • numbers for each return reason category
    • number of days to rectify the situation e.g. refund, alternative product etc
    • returns as a percentage of delivered stock
  • survey data
    • customer satisfaction scores
    • return satisfaction scores
    • dropped cart reasons
    • review scores e.g. Trustpilot
  • expenses data
    • expenses per person
    • greatest items of expense

The next trick is to keep asking WHY

You won’t go far wrong if you go through the data above and keep asking WHY. For example WHY are people dropping off your website purchase journey? WHY haven’t most of your customers downloaded your app? If you cannot answer the ‘WHY’ then create a survey (e.g. with survey monkey) and ask your customers. Better still, profile your existing customers and use one of the many focus group recruitment websites to bring a group of like-mind people together (in a COVID compliant way) and monitor how they would go about buying your products.

Finally if you really do get stuck then give us a shout. We might even be able to answer your questions within the five minutes of free help we offer all businesses in the UK.

Published by Andre Alford

As a registered Chartered Marketer since 2013, Andre has supported the growth of four businesses totalling £61m in combined additional revenue. He has full service marketing experience ranging from product definition to organizing tradeshows, PR campaigns and advertising campaigns. Previously a Chartered Engineer too, Andre is a person of considerable vision that has enabled him to come up with multiple innovative ideas and patents. His management experience comes from managing large teams, large projects and from being a director on the board of a web-directory service. Andre’s management style is a coaching-type one, where he enjoys helping others to discover and exploit their natural talents.

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