The Importance of Data in Business

Reduce traffic lost, spend money better and ultimately to improve your overall performance.

Businesses are collecting so much data every day, from a multitude of sources. Be they the website, social media, CRM (Customer Relationship Management) to name just a few. But most companies either don’t know what to do with it, or have the resource to make any sense of it.

How can data analytics augment your business and what constitutes best practice?

Taking risks in business is a necessity, and failure is a worrying possibility. When launching new products, campaigns or services, integrating data analytics into your marketing strategy is the most effective way of mitigating risk and conserving your resources. It is key that everything you are doing is measurable and you do not start spending money on something when you do not know what the ROI (Return on Investment) is. In order to measure something, you need to know what constitutes success for your business. A great way of doing this is to look at your business plan and map your objectives onto your KPIs (Key Performance Indicators) using tools like Google Analytics.

Imagine ordering a something online and never checking that it has arrived…of course you wouldn’t. If something is worth spending money on, then it is worth measuring how effective both the spend and the effort were so you know whether to repeat the activity.

Best Practice

It is important to keep your data manageable by ensuring you only have a handful of KPIs and that what you are measuring is something you can act upon. If you can’t change anything as a result of the data, such as activity, website or overall strategy, then don’t look at that data. Always ask yourself ‘So What’ to any metric. Moreover, it is important to prepare yourself for every possible outcome before you get the insight from your data. If something goes up or down, know how you will react before it happens so you can act quickly and avoid losing your audience.

Make it easier for yourself

Google Analytics is an amazing tool, you add a snippet of code onto your website and it immediately starts capturing data. But Google has a one size fits all approach to cater for the masses, to really understand what your website is doing and how your marketing effort is performing, there are a number of customisations you should make to help make better sense of the data and align the data to your Business KPI’s.

The power of timely data

If you look at data from a campaign at the end of its run, when you have spent all your money, and only then do you discover it has not converted, then obviously it’s too late to do anything about it. However, if you look at the data from the beginning, this will provide you with crucial insight that will enable you to make informed decisions about how to alter your marketing strategy and how better to focus your money.

Historically, marketeers have felt threatened by data tools such as Google Analytics, feeling it was to show them up, when actually it is there to help show success. The mistake so many people make, is that they will launch a campaign or product and then never look at the data analytics because they are scared of what it might show.

Remove the guesswork

Often businesses witness huge traffic to their websites, but not sufficient conversions. A number of online tools such as Google Analytics allow you to see not only which activity is working/not working for you, but also which pages have problems such as having a high Bounce Rate % or high page load speed. Furthermore, more sophisticated software like Lucky Orange can identify what the actual issue is with that page, perhaps there is a broken link, poor mobile friendly design, or an issue with the call to action. This insight will enable you to solve the issue quickly and drive conversion.

For example, imagine if you were to launch a campaign for a new product range, and you spend a significant amount of money on driving all your traffic to a dedicated page on your website, but there is a high bounce rate for that page and you don’t seem to be achieving much conversion. Software like Lucky Orange would be able to tell you that the reason for this is because the call to action button is right at the bottom of the page and people are only scrolling 50% of the way down the page. If you were to receive this insight early on in your campaign, you could easily move the call to action button higher up the page or reduce the length of your content. A small (inexpensive) change that could make a big difference!

What about social media?

If you are using social media as a platform for promoting a campaign or product launch, many of the same rules apply. To see where you should be focussing your marketing effort, you can gage the conversion value of each social platform, calculate the traffic entering from social referrals and ascertain how many users are talking about you. Having tested different channels and formats for your adverts, you can market them accordingly and target your money with confidence.

 

At D+S we work closely with Rebecca Stringer, an expert data analyst who can help you and your business to define your KPIs, to reduce traffic lost, to spend money better and ultimately to improve your overall performance. By putting data analytics at the centre of your business strategy, you gain tighter control over your digital marketing effort and can more effectively manage risk.

Get in touch if you want to grow and scale your business.

Email: hello@daviesscothorn.com

Or give the office a call on 01283 532780.

Alternatively, come in for a chat and a coffee, our address is: The Studio at Hodges, 82 Horninglow St, Burton-on-Trent DE14 1PN

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