The power of data: Are you making the most of it?

Hi, this week we will dig into a subject that is warm to our heart ??. Data!

Data data data... Sometimes you wish you would have more and sometimes you are overwhelmed of all data and don’t know what to do with all of it.

But in either case, the most important thing is to use the data to understand your business to make good decisions.

Use of data in B2B continues to rise ??

In our recent report “Nordic Digital Commerce in B2B 2023” we asked more than 900 decision makers from Nordic B2B companies how they use data to develop their offering and digital channels.

Totally 52% of respondents actively use data to develop their offerings and digital channels.

·?????16% of the respondents, have a data-driven culture. You can say that these companies understand the power of data and use it consistently to enhance their operations.

·?????17% say they collect and analyze data at least once a month. You could say these companies recognize the value of data but may not have fully integrated it into their everyday operations.

·?????And 19% said they actively use data but primarily for strategic decision-making. These companies understand the importance of data in shaping their long-term strategies and rely on it when making significant business moves.

On the flip side, 48% say they do not use their data. ??

Why is this? For these companies this is a good opportunity to take advantage of. If you already collect the data, make sure you use it.

Not sure where to start? Continue reading…

?? For these companies, it presents a valuable opportunity waiting to be seized. If you are already collecting data, make sure to use it for insights. If you are feeling unsure about where to begin? Keep reading....

What do you measure and why??

??Here are some of the most common KPIs for B2B commerce. There are plenty of things to measure but start by using your business goals and objectives to measure the right things and what’s important to you. What do you want to know? That is where you start. ??

1.????Site Traffic. # of vistors to website. Helps you understand the reach and visibility of your online presence.

2.????Form Fills. # of times visitors fill in forms on your website. Indicates engagement and interest in your offerings.

3.????Content performance. # page views, time on page. Evaluate engagement and how well your content resonates with your audience.

4.????Conversion and Conversion Rate. % of visitors that take action, make a purchase or submit a contact form. Shows effectiveness of website in driving conversion.

5.????Full funnel from first touch to sales. Analyze the customer journey. From first contact to final sales. Helps you understand the effectiveness of funnel and at what stage you need to focus your efforts.

6.????Online Order Frequency. # orders per month or year. Give insights in customer loyalty and engagement.

7.????Average Order Value (AOV). Average value of each customer order. High AOV indicates higher revenue potential and maybe better purchasing behavior.

8.??? Cart Abandonment Rate / Lost orders. % of customers who add products but do not complete the purchase. Identifies potential issues in the checkout process.

9.????Customer Acquisition Cost (CAC). $ of acquisition of new customer. Understand the effectiveness of marketing and sales strategies.

10.?? Customer Lifetime Value (CLV). Total $ generated by a customer throughout the whole relationship with your company. Identifies the long-time vale of your customers.

11.?? Customer Retention Rate (CRR). % of customer who continue to do business with you over a period. Reflects customer satisfaction, loyalty and effectiveness of retention strategies.

12.?? Return on Investment (ROI). How much you get back on your investments. Indicates the profitability and efficiency of your marketing campaigns or investments in systems.

13. ?? Net Promoter Score (NPS). A rate of a customer’s likelihood to recommend your products or business. This is a great KPI to identify areas of improvements.

14. ?? Advertising Spend and performance. $ spent on advertising campaigns. Measures the effectiveness in generating leads, conversions or other desired outcomes.?

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And again, remember that the selection of KPIs should align with your business goals and objectives. It's crucial to tailor the measurement strategy to your specific industry, market, and organizational priorities. Go ahead and benchmark, but make sure it is with a comparable company with similar business model, products, and goals.

And be curious and open. Sometimes data makes you understand things you might not want to see…??????

Good luck and see you soon again!

Reach out if you have questions or have content that you want us to raise in the newsletter.

See you again in 2 weeks.

Cheers ??

Malin

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???Work with Litium

Whenever you're ready there's 3 ways Litium can help you:?

1. We help B2B companies scale their business and build revenue growth with our platform for digital commerce.?
2. We’re keen to build a community around B2B commerce, to share our knowledge and insights. Join our tribe and share your ideas and learnings!??
3. Crafters of commerce. We work with a B2B expert network, our ecosystem of partners and advisers have extensive knowledge and experience in digital transformation.

Reach out if you want to discuss your opportunities:?

[email protected]?or?[email protected]

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