Businesses today have access to reams of data. This data can provide deep insights into customer behaviour, preferences, and what motivates them. However, deriving meaning from large pools of data is not easy. Business intelligence (BI)—defined as the process that converts raw data into meaningful and actionable insights—can help.
BI has been around for a long time, but it is more important than ever today. With the amount of data available increasing every day, BI is essential for turning that data into useful insights that can help your business improve sales and marketing outcomes.
In the past, BI was mostly used by large enterprises with the resources to hire data scientists and analysts. However, with the advent of BI tools for startups and small businesses, even the smallest businesses can now take advantage of BI.
In this article, we will discuss six benefits of BI to turbocharge your sales and marketing outcomes.
Pinpointing the Relevant Marketing Questions
Making sense of raw data and deriving usable insights is not easy—the bigger your company is, the more data you have to contend with. BI can help you cut through the noise and find the most relevant questions to ask about your customers.
BI tools come with a variety of features that can be used to slice and dice the data in different ways to get at the insights you need. In the process, the most relevant metrics and key performance indicators (KPIs) for your business will become evident.
You can use this newfound knowledge to answer important questions such as:
- Who are our customers?
- What do they want?
- How can we reach them?
All of these questions are essential for devising an effective marketing strategy. BI tools can help you answer them more quickly and accurately than you could by relying on intuition or guesswork.
Targeting the Demographics Most Likely to Buy
Marketing today isn’t just about broadcasting a message to the largest possible audience. It’s about targeting specific demographics that are most likely to buy your product or service.
BI can help you identify these demographics and target them with laser precision. The process of identifying relevant demographics begins with data collection. BI tools can collect data from a variety of sources, including social media, website traffic, and purchase histories.
Once the relevant data has been collected, BI tools can help you analyze it to identify trends. For example, you might find that a certain age group is more likely to buy your product than another. Armed with this information, you can tailor your marketing messages specifically to demographics that are most likely to respond to them.
Determining Campaign Effectiveness
BI can reveal how well your marketing campaigns are performing and help you determine where to allocate your budget for the greatest impact.
Campaign effectiveness can be measured in a variety of ways, including website visits, leads generated, and sales closed. BI tools can track all of these metrics and more to give you a complete picture of how your campaigns are performing.
This information can help you make informed decisions about where to allocate your marketing budget. For example, if you find that a particular campaign is not generating as many leads as you’d like, you can direct your resources elsewhere. Conversely, if you find that a campaign is generating a lot of leads, you can invest more money in it to boost sales.
Maximizing Customer Retention
Keeping your old customers isn’t only the most cost-efficient way to do business, it’s also the most profitable. BI can help you keep track of what existing customers are buying and how they’re interacting with your business.
Churn is a problem that all businesses face, but it can be especially damaging for small businesses. Losing even a few customers can have a significant impact on profits.
BI can help you identify which customers are most likely to churn and come up with strategies to retain them. For example, you might offer them a discount on their next purchase or send them a special offer via email.
Knowing what your customers are buying allows you to target them with specific sales campaigns that appeal to them. This, in turn, can lead to increased sales and a higher customer retention rate.
Optimizing Sales Processes
Because BI tools gather data from several different sources, they can help you optimize your sales processes to make them more efficient.
For example, BI tools can help you identify which products are selling the best and why. Armed with this information, you can tweak your sales processes to focus on the products that are selling the best. This will streamline the sales process and make it more efficient.
Having BI to handle the grunt work of data gathering and analysis frees up salespeople to focus on more important tasks, such as developing relationships with customers and closing sales.
Building More Accurate Sales Forecasts
Sales forecasts are an integral part of any business. They help you plan for the future and make informed decisions about where to allocate your resources. Unfortunately, generating accurate sales forecasts is not easy.
BI can help you build more accurate sales forecasts by providing a holistic overview of your sales data. This includes data on past sales, current market conditions, and future trends.
By analyzing all of this data, BI tools can help you identify patterns and trends that would otherwise be invisible. Armed with this information, you can generate more accurate sales forecasts that are tailored to your specific business—helping you procure inventory, schedule staff, and set prices with confidence
As you can see, there are many benefits to using BI for your sales and marketing efforts. With BI, you can target your customers more accurately, measure the effectiveness of your campaigns, keep track of customer behavior, optimize your sales processes, and build more accurate sales forecasts. By taking advantage of BI, you can improve your sales and marketing outcomes and boost your bottom line.
If you aren’t comfortable using BI tools, don’t worry. Look for a reliable digital marketing partner like SnobMonkey to leverage your raw data and create insightful reports that can help you grow your business.