What is the Power of Analytics for your Business?
The evolution of the internet has changed the dynamic between businesses and customers. Consumers are no longer limited to one small geographic region to purchase their products and services. Combined with the wealth of information available at their fingertips, businesses are selling to customers who are better equipped to make informed purchase decisions.
The response from business owners has been to track, analyze, and predict future consumer behaviour through the use of statistical tools and data collection. The use of this data to predict and adapt to the changing marketplace is known as analytics.
What is Analytics?
It is anything that uses mathematics, statistics, predictive modelling, and machine learning techniques to find meaningful patterns and information in the recorded data.
Analytics has been used for some time; however, the level of sophistication of the tools used today vastly exceeds what was once available in the marketplace.
- When you Google a product only to notice advertisements for it following you around on other platforms.
- When you receive personalized offers in email form pertaining to a product you regularly purchase.
As a small business owner, it’s not necessary to understand the math behind analytics to make use of it. The following tips will show you how it can be used as a powerful business tool.
Understand the Behaviour of Each Demographic
By tracking the behaviour of each customer demographic, you will get a better sense of who your customers are. Analytics will show you exactly what each demographic purchases, when they purchase it, and what marketing strategies they respond strongest to.
Formulate and Adjust Marketing Strategies
Analytics is merely a tool. It arms you with a statistical break down of information to help you make better-informed decisions. While it seems only logical for business owners to track their customer’s behaviours, many are unaware of the most basic details of their desired target audience.
With analytics, you can understand the effect each decision you make has on your overall performance. This is vital for new businesses who have yet to establish a reliable clientele.