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6 Ways to Use Business Data in Decision Making

If you want to start making better decisions for your business, here are a few effective ways you can start doing it with the help of data.

1. Business planning

When data was not yet as accessible as it is today, gut feelings and intuition were often the sole decider for a business move. Of course, there would be some help from surveys and focus groups but even that couldn’t be trusted since they were heavily biased.

With the help of data, you can make smart decisions for your business, all while reducing risk and saving time. No need to wait for months or years to do business evaluations when you have all the information you need to make that important decision.

In addition, you can set it so data and reports can be accessed by select people in your organization. With your team having access to these insights, each employee becomes empowered to do their part in helping the company succeed. You can even use this data to gamify and motivate your team members to reach their goals.

2. Advertising

By applying data-driven decision making to your business, you can fine-tune your advertising efforts to create the right message that reaches the right people. These days, there’s already tons of data available even with just one social media post! Seemingly irrelevant details such as the number of clicks or the words you use in your copy can be optimized so that every single cent you spend on an ad campaign is money well-spent.

3. Segmenting clients

Consumers are more likely to engage with your business when there’s a touch of personalization. A way to achieve that is through segmentation. This is where you group clients based on certain factors like age, sex, location, educational attainment, and much more.

Sending canned marketing messages just won’t do anymore. If you want to reach your audience, you have to make your message relevant to them. For example, with email marketing, you can segment your list so that members who have been with you for a year get a free coupon. Meanwhile, those who have just subscribed to you can get a 5% on their first order.

This is just one of the many ways you can personalize your marketing efforts with the help of segmentation. The more data you have about your customers, the better you can market to them.

4. Satisfying customers

You’ve delivered the goods. Now, it’s time to figure out whether your customers are happy with your product/service or not. Thankfully, data helps make it easy to figure out. However, before you can get that valuable data, you need to have avenues where customers can leave their sentiments. Some examples would be forums, review sites, feedback forms, and surveys. Using this information, you not only improve your customer service but also your business model.

One company that’s really good at using data to enhance customer interaction is Southwest Airlines. They go as far as analyzing the speech of one-on-one interactions between their staff and the customer to identify areas of improvement.

5. Automating repetitive tasks and decisions

It’s hard to imagine today’s most successful businesses run without automating their rudimentary tasks. For example, Amazon with restocking their products. You can do the same for your business by automating certain processes to . Stop wasting your employee’s time and mental energy on tasks that can be done by a machine. This doesn’t mean that you should replace your staff with computers. It just means more time for your team to use their skills effectively.

6. Hiring staff

For small businesses, sorting through dozens of resumes isn’t exactly a good use of one’s time. Instead, why not outsource the work to a machine-learning algorithm which can identify success factors for the position you want to have filled.

Once all the tire-kickers have been removed, you can focus on the most qualified candidates whose potential can only be determined by a real human being. You can’t really completely automate the whole process but at least you save time during the preliminary stages of the hiring process.

Data is very essential to running a business nowadays. Make sure to secure it with backup and recovery or at least have a disaster recovery plan. That way, if anything happens, you can be at ease knowing that all that hard-earned information can still be recovered.

Has there been other ways data helped you make wiser business decisions? Share your thoughts in the comments.

 

The Truth Behind Marketing Psychology and Consumer Behaviour

Many business owners don’t realize how much psychology and consumer behavior affects their sales. While it is hard to say why consumers purchase certain things, there are certain psychological traits that can be found in every buyer.

Understanding Traits of Your Consumers

These patterns make it easier to determine how and when certain consumers buy certain things. Although there is an entire science and psychology to figuring out the behavior of customers and prospective buyers, you can learn a few things by paying attention to the most common traits of buyers.

1. Consumers like Being Told What to Do

Many businesses think that having an endless amount of options for their consumers allows them the best opportunity to decide what they want to get. However, this is rarely the case. Having too many choices can cause shoppers to be confused and anxious when trying to make a quick shopping decision.

When shoppers have a limited amount of choices to make, the streamlined buying experience is stress-free and relieving. This is why a call to action is so important, be it online or in person. For example, if you want your customers to visit your store, make a purchase or reach out by email, you need to tell them.

Will the product make their lives easier? Is it a necessity for their work-life home life or personal life or love life? Let them know immediately how making this purchase will improve their life.

Moreover, once they have established the reason to purchase something they need to be told to buy and how to buy it. The simpler the call to action the better, as customers don’t want to deal with something that is too complicated. If a call to action is too wordy or too difficult to understand, businesses are making it harder for customers to complete their products.

3. The Value Should Always be Clear

Think your product is intuitive enough that you don’t need to explain its value? Think again. Consumers don’t want to have to work to understand the value of a service or product. If you blatantly explain why a product is so incredible, they will already have all the information they’re looking for it to complete their purchase. Even if it seems like an obvious truth, stating it openly is one of the best ways to push tentative customers to complete a purchase.

4. Calls to Action Should Appeal to Customers’ Impulsivity

When it comes to your marketing strategy, simplicity is what makes incredibly direct calls to action work. Asking customers to buy, try, and subscribe now appeals to human being’s need to try something new and live in the moment. Relying on the idea that customers have to mull over a purchase will lead you to lose out on a potential sale.

Cater to the impulses of your demographic by always offering them a chance to give into a purchase they wouldn’t have initially thought to make. Whether that means strategically placing certain products by the cash register or using your store’s app to prompt customers to buy one last thing before completing their purchase. While some more tightly budgeted buyers will say no, you’ll see that more often than not, impulsive buyers will go ahead and make the spontaneous purchase.

5.Tap into the Fear of Missing Out

The fear of missing out is an important tactic in sales. Even if a customer has logically thought through every reason they don’t need to make a purchase, when faced with the idea that this is indeed a once-in-a-lifetime opportunity, they can easily change their mind. Instead of losing out on a great deal or a one-time sale, they’re willing to spend money they didn’t initially intend to just to avoid missing out.

6. Customers Like to Purchase Better than Average Products

Perception is a significant factor when it comes to what customers buy. Generally, the average buyer considers themselves to be above average–which gives them an eye for brands that offer above average products and services. By promoting your company as one that is better than the competition, you’ll be able to improve your perceived value in the eyes of customers.

The most significant way to improve your brand’s perceived value is through marketing efforts like branding. With business cards, letterheads, and consistent branding across digital platforms and printed material, you can easily control the influence you have on your public.

7. Harness Emotion to Drive Sales

Neuroscience shows us that each decision made by any human is informed by emotions. Take this into account as you search for ways to get your customers to connect with your brand. In the case of brands like Apple, many customers are so loyal to the brand because they have formed an emotional bond. When presented with other companies and different types of tech, they’ll choose Apple every time, simply because it’s become about more than a company to them.

For brands hoping to boost sales, understanding marketing psychology is a must. By taking the time to understand the science behind consumer behavior, businesses will better know how to market their products and services.