Can Data Analytics Double Your Revenue in 2023?

Is this even possible??

Can you really double your revenue just by ingesting this blue pill called data analytics?

Let's find out.?

And this isn't yet another claim by a stranger on the internet.?

Meticulously executed studies show that data analytics consistently supports and boosts sales.?

A study by Forrester Consulting discovered that data-driven companies are 58% more likely to beat revenue goals than those who don't use data analytics.?

Another study by IBM found that 62% of retailers found their competitive advantage by embracing data analytics.

And McKinsey agreed, in a report, which indicated that data-driven businesses are 23 times more likely to acquire customers .?

But how exactly can data analytics increase your revenue (and sales) this year??

Data analytics makes it surprisingly easy to:

• personalise your customer experience
• boost your engagement rates
• identify unique niches and key prospects
• hit much better returns on ad spend (ROAS)
• increase your customer retention rates
• maximise your marketing return on investment (MROI)

6 ways data analytics will increase your revenue

1. Personalise your customer experience?

Personalisation is the cornerstone of a best-in-class customer experience. This soon becomes best-in-class conversions.?

76% of American shoppers are more likely to complete a purchase if they're given a personalised experience.?

What's mind-blowing is that the blessings of personalization extend to every stage of your business' sales funnel.?

Here's your two-word rule.?

Personalise everything.?

And you do this, without moving a muscle, with data analytics tools and systems.?

Collect both big and small data to create categories and profiles of your customers.?

Then go ahead and segment the content and funnel each audience.?

Sounds hazy? That's because it is.?

For you, what matters more is that this is doable. Not that you understand the mechanics of this. It's like what goes on under your car's hood. Whether you understand it, it doesn't keep you from enjoying the wind in your hair on a summer day's drive.?

2. Drive up your engagement rates

Your website traffic, conversion rates, and sales depend on your customer engagement rate.?

According to a study by Havas, consumers see 77% of brands as not meaningful . All because they haven't built a strong relationship with their prospects and customers.

How can you book your permanent seat in the “Council of Brands that Matter”? (a.k.a the other 23%.)

Data analytics. Right.?

Our customers rely on data analytics to:

• identify prospect's interests
• understand their content preferences,?
• (and use this knowledge to) create more relevant ads, offers, and emails.?

I'm talking about tracking data points like:

• common interests
• industries they work in
• type of platforms they prefer
• type of content they prefer (based on engagement tests), etc.

You can get this information by studying and analysing:

• data from social media platforms
• business intelligence reports
• website reporting and analytics
• data from on-site chat bots
• analytics from customer support teams
• analytics from open-ended survey questions and customer reviews
• predictive analytics

Use your learnings from this data to put together a revised customer engagement strategy.

And remember, even after you launch a new customer engagement strategy, you can (and should) test and improve your it by analyzing data from A/B testing.

3. Identify valuable niches

But why identify a new niche when you already know your prospects?

Because identifying the unique niches within your larger customer group, you can:

• create more effective content funnels
• let you run more effective ad campaigns
• push the right products to the right audiences
• discover new potential markets/prospects for you to expand into
• finally, find that formula where you and your staff work less and warn more

You can do all this by simply leveraging the power of traffic analytics.?

Here's how we do this for our customers.?

We study the traffic patterns and data from our website to look for insights on:

• popular keywords that drive traffic to the site
• preferred products and popular product pages
• common geographic locations and prospect demographics of prospects

This data helps our clients find the path of least resistance to 2X revenue.?

4. Achieve better return on ad spend (ROAS)

Whether you spend ￡ or ￡￡￡ on ads is immaterial.?

As long as it’s based on cold, hard, impartial, and unbiased data, you’re good.?

The rule is: always push for better ROAS.

And even in this, data analytics gives you a significant edge.?

• Firstly you can track and test ad targeting strategies. This alone could be your ad agency’s nightmare, as you order them to plug all leaks.??
• Then, you can double down on low-cost, high-return opportunities, and boost your sales per advertising pound spent.?
• Then, you review every 10 days, which ads are making you money, and you kill the money sinks.?

Finally, you get to enter the nerd territory. This is when you ask your data analytics partner to obsess over smaller details to identify hidden gems for a better ROAS.

A few details you can experiment with to improve your ROAS at the this stage are:

• Test and refine your keywords
• Test with bidding on your brand name (this almost always, works)
• Test and find the ideal ad timings
• Test ad formats (text heavy, image focused, video format, combination, etc.)
• Play with ad banner sizes / video lengths / copy length
• A/B test the landing page copy for on-page conversions
• Optimise your ad for mobile

Pro tip: Don’t forget to monitor customer LTV’s along with ad conversions.?

Sometimes an ad might give you a quick spike in customer conversion, but a drop in the customer lifetime value (LTV). This usually happens if the targeting is slightly off, so you get the quick wins but it will sink you in the long run.

5. Increase customer retention rate

You can’t be in the long-term game, and not be worried about customer retention rates.?

According to a study by Gartner, a 5% increase in customer retention can increase profits by 25% – 125% .?

And data analytics is the key to unlocking these increased LTV’s and soaring profits.?

You can start by gathering data to:

• map the customer journey for vulnerable points for churn
• identify customer segments that are most likely to churn
• discover qualitative reasons for customer churn rate (ex: customer service, product downtime, etc.)

Then you intervene – automatically – just when a shopper is likely to drop.?

For example, here is how the 3 steps would work in a simulated scenario:?

1. If you notice lower LTV’s, then by tracking the customer journey you might realise that most customers who drop off are those who have bought a certain segment of XYZ product.?

Now your first instinct might be to either reevaluate your product or offer them discounts for future purchases to get them back on. But hold your horses, and look a little deeper.

1. Next by tracking prospects on page, you might realise the segment of prospects who are dropping off are those who have been shipped the product from a warehouse in Manchester.
2. And finally using survey polls and user testing data, you might realise that their post-purchase and returns experience was delayed. And the customer redressal platform has some glitches in it.

So instead of focusing on product revisions or lowballing discounts, you can simply focus your energy on fixing your Manchester-zone fulfilment and the customer redressal portal.?

And voila, you just improved your customer loyalty.

6. Maximise your marketing return on investment (MROI)

Data analytics as a tool for improving your overall MROI doesn’t get the love it deserves.??

You can always find trends to hitch your marketing wagon to. But that’s different from simply knowing what it takes to win, year on year.?

Where there’s data, there’s truth. And truth is the seed that blossoms into confidence for a business.?

Fewer shot-in-the-dark campaigns. Undying quest for supernormal returns on MROI.?

No more chasing away prospects by showing up too often with the wrong messaging.

Knowing exactly which platform to choose for each campaign.

Knowing exactly what time to start and stop ads and campaigns for best ROI.

No wasting precious company time or resources on trying to cover all modes of communication. (Because you will know which one gets the best engagement and conversion.)

It’s all doable.

So what should you do next?

Start with the basics.?

Build a foundation.?

Find the right partner.?

Go granular.?

Look.?

Collect.?

Measure.?

Test.?

Improve.?

Obsess, over questions like:

• How many sales were accounted for by a season/platform/offer??
• How many visitors does your website get? How many of them convert?
• Which social media posts of yours get the most engagement?
• Which platform do you get the most engagement on?
• What kinds of offers does each customer segment prefer?
• How are your customers finding you?
• How long do they know you before they buy from you?
• Where are your customers from? Who are they??
• What kinds of transformations your customers are experiencing with your service or product??
• What are they raving about to their family, friends or colleagues? What are they complaining about?

It’s modern folklore how the likes of Jeff Bezos, use data, not emotions, to make decisions.?

You don’t have to be in the game he’s playing, to start doing what he does.?

For more information, please contact Jonathan co-founder of EVD Analytics, making analytics easy for everybody