Signal vs. Noise – Make it better with Business Analytics

Since writing my last blog about business analytics, I was lucky to get some really fantastic feedback, and some very interesting insights from people and companies using and planning to use Big Data. However, people wanted to explore some real examples of how our work really benefits business. With these requests in mind, I have outlined some examples.

Get personal with your customers – it’s a relationship

One of the main uplifts a business can enjoy from collecting customer data, is the benefits the analysis of those data, bring to the business of marketing. Amazingly, some businesses collect data, have customer relationships, but still do nothing with the data they collect to make those relationships better. You can really add value to a customers’ experience, by adding a little relevance, in the right channel at the right time.

If you are planning to use content marketing, you need to have a clear understanding of customer needs, and have a solid way to track the interactions, in order to keep the conversation relevant.

You probably know some advertisers who send generic marketing. Right now, generic means white noise. If you want to generate signal, and get the attention of your customers, you must show some interest in the relationship. Your customers have a limited capacity to listen to the multitude of messages they get on a daily basis, if you make an effort and measure their interests, you are setting yourself up for success.

Amazon is a great example of a company that makes a serious effort to elevate itself above normal levels of customer care, this is achieved through the active use of data that is available.

Use data sources that are available

I like to use open data to enrich data from a CRM. Often open data contains hidden gems of insight when combined together. These insights can guide a marketing campaign, to help ensure the best ROI.

Let’s take a hypothetical example. You are planning to develop or market a fitness centre in Helsinki, you could ask some pretty simple questions:

• Where should it be?
• What facilities should it have, and how big should it be?
• Who should I market to?
• How do I reach them?

What’s really interesting, is that with the right data, questions, hypotheses and techniques, you can start a strong refining process, and in turn get some answers for these questions.

With enrichment from CRM data, and behavioural profiling, you can market to the right people, with a relevant message.

The open data sources that could be used in this case are from the City of Helsinki and from The National Institute for Health and Welfare. These data categorise the city’s population health habits, housing types, transport times/distances and voting patterns. We can use these data to start profiling the locations within the city, in terms of:

• Commercial rent values
• health habits of locals
• basic population demographics
• transportation statistics

When you have an understanding of the best locations to locate this business, then we need to market to the potential members. We also have an understanding as to what kind of person should be marketed to, and what channel would be the most effective. No matter what channel is chosen, the message needs to be relevant, and personalised to some degree. Remember: we want to create signal, not noise.

Measure and follow-up

All of these forms of dialog (customer messaging) should direct the customer to your business. This produces an opportunity to collect web traffic data, which can include identifiers to see how the customer arrived there. This data can further enhance the retargeting and follow-up dialog that should happen, whether or not the customer converted. This measure phase is critical, as it permits a refinement of the overall process, and a possibility to realise new targeting opportunities.

Retargeting based on observed behaviour and profiling is a fantastic way to improve CTR and ultimately conversions on a web store. In this way, the right customer can be engaged with in the right channels.

How your business can benefit

Whatever your business is, and however it is structured, it can benefit from the active use of analytics. Not all of the gains are in the outbound channels; your internal processes and understanding can also greatly benefit. Processes and areas which are high gain and well within reach are:

• Sales funnel management
• Supply Chain
• Cost control
• Social Media Communications

In this way, your investment in Big Data analytics produces composite benefits that far outweigh the level of investment, with a potentially massive ROI.