Obviously, because of our flagship product FoxMetrics, we believe analytics plays a key role in growing your web presence. Armed with the right analytic tools, you can make critical changes to your website based on well-informed decisions. With our real-time web interaction tool, it is so much easier to come to an immediate conclusion or drill deep to gain a better insight into how people interact with your website.
Here are 5 Exceptional things you can achieve using an analytic tool like FoxMetrics.
But first things first: What is Data Analytics?
As a refresher, data analytics involves examining datasets to draw a conclusion about the information they contain. A data analytics tool allows you to extract valuable insight and uncover patterns from raw data.
It can help you better understand and meet up with customers’ changing demands, optimize your ad campaigns, develop better products and ultimately boost performance.
A good data analytics tool will allow you to collect and analyze historical data or real-time data to gain helpful insight. These include first-party data from customers and visitors to your site. You’ll also be able to collect and analyze second-party data from other organizations and third-party data from marketplaces.
What Can You Do with Data Analytics?
Data analytic tools empower businesses to make data-driven decisions resulting in massive growth and business success. Here are six ways you can leverage data analytics for your business.
1. Making More Informed Decisions
Data analytics eliminates guesswork from product development, campaign creation, customer journey, and others. Whether you want to predict the biggest seller for the holiday or determine which marketing strategy is more effective, data analytics can help. It gives you a 360-degree view of your customers’ activities so you can make accurate decisions. And of course, with a modern analytic tool like FoxMetrics, you can make faster decisions with real-time data.
It’s been proven that data-driven companies are more successful than companies that don’t use data in their decision-making. A Mckinsey Global Institute study revealed that data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable. With the right data, businesses will know when to change their pricing and predict what products customers will be interested in based on their shopping behavior.
2. Optimize Customer Acquisition And Retention
According to a study by Forrester Consulting, 64% of marketers say they need data for prospecting, and 67% of respondents agreed that customer acquisition is more difficult than retention. Which of course is true. Businesses spend thousands of dollars trying to acquire new customers, and most fail miserably at it. This is why more organizations are turning to their data to answers salient customer acquisition questions.
With data from customers’ purchase history, social media usage patterns, and product usage patterns businesses can generate insights on exactly what their customers are looking for. Armed with such information, they can personalize brand messaging and optimize their customer acquisition strategies.
Data also plays a major role in customer retention. Consumers’ demands have become so complex today that relying on instincts and experience alone isn’t enough. Organizations need to understand their customers and cater to their needs to maintain customer loyalty. To achieve this, you need to capture and reconcile multiple customers’ identifiers like email addresses, phone numbers to one single customer ID to enhance segmentation and personalization.
3. Security Risk and Fraud Detection
The ongoing digitalization of the business world also comes with the risk of being more susceptible to cyber-attacks. Businesses face both internal and external threats to their financial, physical, and intellectual assets.
Data analytics tools offer efficient mechanisms that allow you to quickly detect and prevent potentially fraudulent activities. These tools come with a real-time fraud prevention mechanism that can detect unusual IP addresses and user behaviors like multiple logins attempts and shut out fraudsters. The IRS has been able to recover over $2 billion in taxes and prevented billions of dollars in fraud, thanks to data analytics.
Data analytics tools also provide internal security protection. By analyzing both structured and unstructured operational data, you’ll be able to identify patterns and discrepancies indicating fraud. Some hospitals use analytics tools to prevent misuse of patient’s information and identify employees leaking such information.
Additionally, analytics helps lower business risks. Business owners can rely on available data to predict whether a new product or branch will be viable. For instance, Starbucks relies on data like demographics, traffic, and customer behavior to ascertain whether it would be ideal to open a new branch in a specific location.
4. Delivering Relevant Products
If a company wants to remain relevant in today’s world, it cannot continue relying on instincts. That’s why about 54% of businesses are already leveraging data analytics to accelerate time-to-market for new products and services.
The data generated from sales and customer’s interactions with products can provide insight for product teams to make more informed decisions. Instead of relying on intuition and feedback from a few customers, product teams can look into available customer data for insight on how well a product or service met users’ expectations, and the improvements to make.
Here are some ways to use data analytics in product development.
- Product viability: product and design teams can rely on data analytics to ascertain how feasible a product or service is.
- Making informed decisions: insights from your data can help you make more objective and faster product development decisions.
- Product ideas: analytics can help you identify viable business ideas that you wouldn’t have thought about by yourself.
- User experience: you can use the insights from your customers’ interactions with your product to determine the capabilities to add to a product and other ways to improve it.
5. Advanced Personalization
Customers’ expectations from businesses have increased drastically over the past few years, and only companies that can meet these expectations are likely to remain relevant. 76% of consumers say they are more likely to complete a purchase if offered a personalized experience.
Data analytics tools like FoxMetrics allow you to create unique IDs for individual customers and collect data to help you offer a personalized experience across multiple channels. You’ll be able to determine which content or product to push to which customer at every touchpoint.
Amazon increased sales by 30% when it adopted a personalized recommendation system based on customers’ real-time data trail.
What’s Next? Put Your Data to Work
If you are in business but don’t know how to go about collecting and analyzing your business data, then you’re not alone. The first thing you should do is to determine the problems within your organization you’ll like to solve with your data. You may want to increase traffic, sales, customer retention, operational efficiency, save ad costs, and others.
Once you’re done, the next step is to choose a data analytics tool. For this, I recommend FoxMetrics; a top tool for both data analytics and visualization. The FoxMetrics stack will give you much more capability than you can get with most tools.
Fortunately, there’s a free (though limited) option. You can SignUp for a free FoxMetrics account here to start leveraging data analytics to grow your business.