- 1 Here are some of the ways through which businesses can use data analytics to increase their ROI.
Data is everywhere today. From social media followers and website visitors to email subscribers. Businesses that are able to analyze this data and put it into good use have a lot to gain, especially when it comes to growing their businesses.
Data analytics is all about studying the information or raw data that you get and making conclusions about it. There are various techniques and processes that can be used. All these techniques have been automated into algorithms and mechanical processes that work over the data collected to make some sense out of it.
The techniques can reveal metrics and trends that a business can use to increase its efficiency. If you trust your data, you can lower your company’s costs, increase your sales, and improve your awareness.
Here are some of the ways through which businesses can use data analytics to increase their ROI.
Start With a Plan
If you plan to implement data analytics blindly, you can be sure that it will not work. If you want to use the analytics to improve your ROI, you need to have a definite plan on how to do it. This is because data analytics do not automatically add value or increase ROI.
The value you get from analytics will determine the outcome you should expect from your marketing ventures. Get to know what to measure, when to measure, and how to measure. The metrics and determining the exact steps to take are what will guide your decision-making process.
Create an initial outline, flesh it into a detailed plan and know how analytics will help the process, for example, launching a new product or sending targeted emails.
Effective embedded analytics projects include more than attractive data visualization. The embedded reports and dashboards produce new actions and insights that offer a better application experience. It offers a more productive tool because it combines insight and action within the same application.
Embedded analytics is all about the integration of capabilities and content. It provides significant information and tools that have been designed so that the users can work more efficiently and smarter.
With it, you can integrate systems like ERP, CRM, financial systems, or marketing automation that will support the decisions you make regarding specific tasks.
Monitor, Adjust and Experiment Frequently
Data analytics is a flexible approach to business. Even if it is working perfectly, you should not forget to control the data that you are gathering and the process you are using to collect data.
You also need to adjust everything so that you can optimize it if it does not give you the results you want, and experiment it with new suggestions and directions that the data gives you.
Continually monitoring the analytics is essential because you will be well aware of the type of data you collect and how you do it. You can only know if you are missing some important data if you monitor the process and change it as necessary.
Adjusting the process will be easy because, as you monitor it, you will get suggestions on the changes to make. With this, you will be able to modify the goals that you had set in your plan and increase your ROI.
Experimenting gives your business that opportunity to increase its growth. As you monitor and adjust the process, you will not only get insights but alternatives as well. This is not a tiring process; business experiments work well.
Pick a group, test an action with them, pick another group, and take no action. Compare the results and move quickly from a failed experiment and implement the success as fast too.
Avoiding Vanity Metrics
To achieve a larger ROI, you should keep away from vanity metrics that can distract your team from achieving their business goals. Marketing metrics like press release shares, Facebook fans, and others are impressive, but they mostly do not associate with revenue.
Focus on engagement metrics that will equate to ROI. Vanity metrics do nothing for your website.
Once you have the right data, you will save a lot of time and make valued predictions. You can leverage your tools by tracking your customers’ behavior consistently, creating custom reports with the data that your company needs, and analyzing the data before, during, and after any marketing campaign.
Remember vanity metrics may make your marketing efforts look good but will rob you of your time and effort as they shift your focus away from things that can positively impact your ROI.
Do Not Ignore Qualitative Data
Something data analysts can tend to dismiss is qualitative data. To fully understand what the number is giving you without the context, you will need qualitative data; nothing else works better than it.
Online reviews, social media comments, and videos or images related to your products and services, and other kinds of unstructured data all tell a story about your brand.
If you avoid this data because it’s a little hard to process, you will be missing a huge part of data that can show you how your target customers thinks, feels, and interacts with your brand.
This is a very powerful analytical tool that will have a significant impact on your ROI. You will need what quantitative data offers you to improve your strategies, tap into the new business opportunities, explore the growth windows, and more.
Data Analytics Is a Worthy Effort to Increase ROI
While there are people who might still give data analytics the cold shoulder, there is a lot that businesses can gain from it when well implemented. Remember that the ROI you get out of it will depend on your plan and how you implement it. As much as it is not an easy task, it is worth all the time and effort that you will put into it.
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