8 Ways to Extract Value from Customer Data

1. Accept That Big Data Is Here to Stay

Big data, looked at without refinement, can seem like a huge, unwieldy mess of random information. aken in that context, there’s a real temptation to simply ignore the information before you. But, ignoring big data is ignoring a key opportunity. Data science, for example, is a growing profession because of the value that comes from being able to screen, filter, and interpret what is useful in big data.

People who choose to ignore big data because of its volume do so at the peril of their own business. The first step to extracting valuable customer data is to acknowledge that good data is “in there somewhere” and to have a willingness to mine through it.

View: Our definitive data driven marketing webinar for inspirational tips and inspiration on the subject.

2. Invest in Analytics

The key factor to making use of customer data for marketing, once you acknowledge its potential, is to have the right tools and talent to wade into the sea of information and come back with data that makes the most sense to you.

You should seriously consider allocating some operational budget to analytics. Bigger companies may have entire departments dedicated to this job, but while that scale gets results, that’s not the only way to achieve useful analytics. Even small to medium enterprises can find an analytics solution that works for their size and budgetary requirements.

3. Use Historical Data

When it comes to extracting real value from customer data for marketing, people often think of metrics or digital insights as a way to help predict the future, but some of the most important lessons that data teaches us have come from the past. A good long-term plan to use data from customer information is analyzing historical data.

Businesses should always be aware that some of the best data available are the sets that are gathered over time. For example, you should not be ignoring sales data from the last 5 to 10 years, even if it’s not part of your current digital infrastructure.

Use document management systems and archive this data if you must, but analytics put to the task of discerning past customer sales data can reveal incredibly useful information about customer behavior and buying patterns. If you have existing data, even if it’s not digital, digitize it and make sure your software can use it. Under the right circumstances, it may be far more helpful than you imagine.

4. Apply Customer Data To Operations

Another effective way of gaining value from customer data for marketing is applying insight to your internal operations. Extracting data from customer behavior and other datasets can obviously help to increase sales, but don’t forget that another way to make more money is to spend less. In addition to increasing sales, the right type of customer data can also help to increase efficiency and reduce waste, both of which can increase your revenue.

For example, your customer data is showing that more and more of your marketing response is coming from YouTube and Instagram, and less of it is coming from Facebook. This may be an indicator that for your product and target market, you can spend less—or cut down entirely—on your Facebook spending and devote more effort to the platforms that are getting good results. Let customer behavior data help to streamline the way you run your business.

Read: Our guide to social media demographics for a deeper dive into the needs and expectations of digitally native consumers.

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By : Vayxi