The Importance Of Data In Marketing

Business marketing

Marketing has always been one of the core aspects of any business, which is why it’s always been heralded as one of the few things that can make or break your business. However, marketing has changed exponentially over the past few years, with data becoming increasingly more important.

Knowing as much as possible about your customers – and potential customers – is key, as then you’ll better be able to act on what you know in order to further drive your business. But gathering this information isn’t just about developing your brand, it’s also about market news and ensuring that there’s a viable market for your business.

Because of that, data collection and utilization are key in developing your business from its earliest stages. But then that leaves people with the question of how to actually collect the data that they need.

How To Go About Data Collection

There are several ways to go about collecting market data, and each will provide just as much information as the others, but different kinds of information. Because of that, it’s necessary to collect data in different ways, and not just rely on the one data collection method.

User-Generated

This kind of data has been on the rise over the past few years, with the rise of social media being the key driver. This is what customers, or potential customers, are saying about your business, or even the business niche that you’re in. Compiling that data will help you to better adapt your company moving forward, as you’ll be able to figure out your company’s strong points, as well as where it’s lacking.

Captured Data

Captured data is essentially what data you get when someone visits your website; what particular pages your customers visit, what products they’re looking at, and more can all be extremely beneficial to your business.

For example, if there are a lot of page visits to a particular product that you’re selling online, but very few are actually buying, then it may be time to change tactics and have a look at why that particular product isn’t selling. Then you can, and work that into your new strategy. 

Transactional

Transactional data collection is exactly what it sounds like; it’s the collection of any and all data that you take in when a customer buys something. Essentially, this boils down to what kind of products are most popular, when customers are buying and other related habits. With all of this information, it’ll be easy to figure out where you need to improve for certain products, as well as poise yourself for driving sales at key times.

Collected Data

This is probably one of the easiest types of data to generate and compile for any business as it comes down to creating surveys or lead generation forms for potential customers to fill out. While many businesses aren’t in a position to gather vast amounts of data this way, it is one of the sure-fire ways to get quality data out of the people that matter most to your business. On top of that, it also helps with the likes of email marketing in order to further drive sales.

How To Properly Utilize Data For Your Business

Obviously, the above aren’t the only ways to collect data, but they’re definitely among the best and easiest. However, no matter which way you collect your data, you still need to know how to use it, and that’s where it may get a little tricky. That being said, it doesn’t need to be.

Knowing your customers’ buying habits, as well as where they feel particular businesses, or niches, are falling short, you’ll be able to create a full marketing and sales strategy in order to address a number of key areas. For example, if your data shows that there’s a low demand for one particular product, then crafting a sales and marketing strategy around that product will help to increase sales.

Alternatively, you can always focus on your higher-end products, regardless of their popularity, and craft your sales strategy based on the data you’ve collected so far. That’s not to say that you should stop collecting data at this point, however. During the course of any strategy, adaptability is key. Analyzing the reception of that strategy is key; if the reception is what you were looking for, then great. If not, then it might be time to go back to the drawing board and craft another strategy.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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