How Data Can Be Useful To Small Business Owners?

Important Data Strategies

Contents

1) Your Consumer’s Behavior.• How To Know Your Customers’ Information?• What is Google Analytics?• Example Of Google Analytics Report Data• How to utilize the Google Analytics data for greater insights?• What is Basket Analysis?• Example Of Basket Analysis• Benefits of Basket Analysis• Consumer Cycle

2) Data Management.• What is CRM Solution?• Which CRM solution your business requires?

3) Macroeconomic Factors.

There are several data strategies which help small independent business owners thrive, below are the few important ones:

Data plays a great role in every business, both big and small. Using data for small business can give owners  access to a wealth of untapped insights that can eventually help boost sales. In today’s environment companies that can collect, analyze and make decisions based on data, win big!

1) Your Consumer’s Behavior.

2) Managing your customer’s data and it’s utilization for effective marketing strategies.

3) Macroeconomic Factors.

Important Data Strategies

Customer’s Behavior: Your customer’s behavior is the key to success of your business.

• Know who your customers are?

• What do they purchase?

• What kind of products do they purchase? Variety in their purchasing shows low involvement in any one product and similar products’ purchase every time shows high involvement in that particular kind of product.

• What is the amount they spend on their single purchase?

• What is their economic situation or their lifestyle? – This helps you promote your products better to them.

• How often do they visit your offline/online store?

• When do they purchase? Is their any seasonality in their purchase behavior like holiday/festive season?

How To Know Your Customers’ Information?

• You can collect your customer’s personal data like age, gender, occupation, phone number, email addresses every time they visit your store.

• You can chat up your customers while they visit your store to know all their information.

• You can conduct online surveys or contests to gather more information like income, lifestyle, brand preferences, etc.

• You can collect the greater insights about your customers with the help of Google Analytics.

What is Google Analytics?

• Google Analytics is a freemium web analytics service offered by Google that tracks and reports website traffic. Google Analytics is now the most widely used web analytics service on the Internet.

• Google Analytics reporting tracks the sales activity of your customers.

• These reports shows your website’s traffic, transactions, revenue and many other commerce-related metrics.

• These reports also identify the poorly performing pages of your website with techniques such as funnel visualization, where visitors come from (referrers), how long they stayed and their geographical location.

• These reports also analyze the time-of-the-day and day-of-the-week most purchases happen.

The heat map in the left shows that the most sales occur from Bengaluru and Mumbai. So this tells you where to promote most of your products online and target to buyers of those regions.

Example Of Google Analytics Report Data

• With the help of Google Analytics reports, you can actually look into the purchase history of your customers.

• When did they purchase a particular item? What other products did they buy along with that one product?

• These strategies are the powerful marketing practices in today’s era which big companies like Flipkart and Amazon use to market other product recommendations based on historical purchases.

• This is also known as “Basket Analysis”.

How to utilize the Google Analytics data for greater insights?

• It is one of the most common and useful types of data analysis for marketing and retailing.

• The purpose of this analysis is to determine what products customer purchase together.

• It is more like while doing grocery shopping what all products a customer put in his/her cart.

• This analysis is very useful to market new products to a prior customer while they visit next time based on their purchase history.

• A simple example in the next slide will help you understand it more.

What is Basket Analysis?

Image by Adobe Blogs.

The image on the left shows a simple example of basket analysis. According to the data shown here people who purchased milk also purchased bread and eggs as necessary dairy items. So now you know in future if someone buys milk from your store, what are the other items you can offer to them to purchase from you.

Example Of Basket Analysis

Benefits of Basket Analysis• Retention: Offering your customers new products every time they visit your offline store or

website engage them in your brand. This eventually lower their churn rate. You can surely retain some of your valuable customers.

• Advocacy: Retention of your valuable customers in turn helps in advocacy of your brand. If your customers are happy with your services/products’ quality, they buy from you often. Their word of mouth increases your chance of acquiring new customers. You can also promote on social media your valuable customers’ feedback and testimonials.

Consumer Cycle• Based on previous information we can now define a consumer purchase cycle illustrating

different communication touchpoints at each stage.

Awareness Purchase Retention Advocacy

Data Management: Storing all the data internal to your business, customer’s information is a matter of privacy and confidentiality. It should be properly organized and structured for it’s effective utilization.

• All the data achieved previously through different techniques and analyses need proper analytic tools.

• These tools help track customer engagement, reduce churn rates and ultimately higher ROIs.

• These tools can be easily available CRM solutions in the market.

• Every business, small or big, has a CRM solution of it’s own requirement. You can choose from software listed in further slides.

What is CRM Solution?• CRM stands for Customer Relationship Management.

• The CRM solutions are used to manage a business-customer relationship.

• Typically, CRM software is used in the enterprise, however many products scale and can be used in a business of any size.

• These solutions manages all sorts of data needed in a business:

Customer data Customer engagement Customer support Clients’ contacts Automate Sales Support vendor/ partner relationships Assets or resources

Which CRM solution your business requires?

• There are few criteria based on which you should evaluate your CRM solution:

Cost Ease of use Automation capabilities Customer service Customization options Reporting and analytics

• If you are an enterprise business, you can get SalesForce at an affordable price. It is all-in-one, cloud-based solution that has everything you need in a CRM software.

• If you a very small business or even lesser budget you can use free versions of Insightly or Zoho CRM. They are highly scalable as your business grows.

Macroeconomic Factors:

• Macroeconomic factors are events or situations that affect the economy on a broader level.

• Some macroeconomic factors include unemployment, savings, inflation and investments and these can be used by SMEs to enhance their business.

• Macroeconomic factors like consumer spending can be taken advantage of easily. For ex - If your business is located next to a mall, you can add more staff or plan promotional events as more people would flock to the mall.

• Similarly, macroeconomic factors like the weather may impact your business. If you run a coffee shop and it’s too hot out there, you could add a few refreshing drinks to your menu.

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