Companies and enterprises are facing a daily grind, while they are also required to see to it that their customers are happy & satisfied, operations is efficient and employees are satisfied; and all this makes running the business – a real challenge. “Audience is the new business model”, and if any organization is struggling miserably to communicate with customers or their audience, there certainly is a negative impact of it across the business plan, starting from finances to product development.
Majority of the organizations, in some or other manner, have turned to data analytics to identify and understand their audience, focusing on optimizing customer communication, revitalizing their business models, and make profitable growth. Even Fortune 500 and Fortune 1000 companies have realized that data analytics draws a clear line from marketing campaigns to profits. Here are three ways, tried and tested, on capitalizing data analytics to improve overall business plan.
1. Understanding target markets before expansion
Some of them have grown smart enough & started viewing their businesses models as a constant work in progress. Exploratory data analytics has helped them stay relevant. Leveraging data analytics offerings, equips them with real-time information in and around consumer activity. This also helps them with potential target markets which might have stayed unnoticed in past years. Factors that they consider for reaching out new demographics:
- Identify what aspects of products/services are best received to focus on reaching out to potential customers.
- Assess and strategies how potential customers can be served better as compared to direct competition.
- Visualizing insights derived through data analytics & conclude with pattern of age, gender, location etc., to fine tune offers in and around these factors.
Understanding target markets before implementing expansion plans, is imperative. Using data to glean insights and information to identify strengths and weaknesses of the current business model backed with user activity; ultimately enhances capabilities to engage potential customers in newer landscapes.
2. Understanding consumer behavior
Businesses were operating with limited abilities when it came to reaching out to customers and a lot of decisions were made on guesswork. This included the rudimentary marketing and advertising tactics of attracting customers. And then predictive data analytics walked in to the picture.
Understanding audience or customer behavior, the critical need and element of preparing a profitable business plan, is addressed adequately. Online activity of any consumer, which gives out data that can be analyzed on real time basis, is used like an opportunity to directly target them. This data also helps businesses in organizing targeted advertisements to encourage more sales and better manage finances in the following ways:
- Tracking down when a customer had made purchases, with help of sales forecasting, helps in telling most probably when they will make the next purchase again. Based on this, businesses can organize targeted advertisements to enhance sales.
- Consumer purchasing patterns, as highlighted by predictive analytics, will help in strategically allocating funds according to times of prosperity or stagnation.
- Easy identification of trends and fluctuations in the market and across the industry, facilitated by historical data analytics, helps in minimizing risks and ascertain lucrative investment opportunities.
The fine blend of sales forecasting and predictive analytics creates a sustainable financial model. Understanding consumer behavior delivers valuable insights about how purchases were made and what all can be done to improve overall sales activity.
3. Understanding the power of word of mouth
Tremendous rise of social networks has forced businesses to recognize and understand the power of word of mouth. Customer feedbacks and forums have proved that even the biggest of corporations across the globe are subject to customer reviews. Businesses today are modeling their business plans based on customer expectations by leveraging consumer data analytics.
- To build trust and reach out to more loyal a customer base, businesses can target consumers with personalized messages to prove that they are attentive.
- To engage consumers in more meaningful communication, they can leverage data to get in touch with consumers based on seasonal events, holidays and significant events.
- Being open to criticism is one of the most effective ways businesses have opted to improve products/services and even the business model, and make the customer feel that they area attentive; encouraging their customers to become returning customers.
With help of data analytics, it becomes much easier to track customer needs and adjust the business model accordingly. Ecommerce / retail, real estate, consulting & professional services, transportation & logistics, BFSI or healthcare; data analytics has empowered professionals across industries to glean insights about consumer needs, useful to reinforce confidence in their products/services, impacting everything from consumer awareness to sales & profit.