Regardless of the industry your business functions in, data analytics is a vital part of any company. Now, data is one of the most valuable commodities across the world. In a data-driven era, companies such as Alibaba and Facebook have managed to handle data effectively to be top dogs in their industries.
Even if your business is looking to improve internal processes, enhance customer support or looking to attract new clients, data creates a valuable insight into what's working and what isn't and gives you the vision to produce positive results.
Developing Customer Relations Through Data Efficiency
Companies can use data to enhance their service for customers and clients. To sum up, data gives a detailed understanding of customers needs based on the way services are used so that companies can adjust their services respectively.
Nevertheless, a lot of the data accessible to us remains untapped. Data company OnAudience created a report examining how companies across the world handle and utilise data. The report states that companies globally have increased their spend on data collection from 2017 to 2019 by $10 billion. Still, companies are not using all the data available to its full potential.
Data Analytics A Driving Force Behind Business Goals
Data analytics also plays an integral part in a subscription model business. Information to data points such as which offers and promotions are attractive and why and when customers unsubscribe can be used to your advantage to improve marketing efforts and give your existing customer a much more excellent user experience.
Data Focused Marketing to Attract New Clients
Marketing teams today understand that data can be used in several different ways to attract new clients. A company can monitor marketing projects and re-create those that deliver the greatest success. Conducting market research is a popular strategy to collect data and can be pivotal to a company's growth.
You can expand on offers and promotions based on the rate of conversions from sales data. Furthermore, you can make better-informed decisions in the future with customer data by unveiling, which pricing and package choices are highly popular with new customers.
Another smart strategy of attracting new customers is to release subscriber data publicly. Widely recognised video streaming company Netflix has used this strategy on multiple occasions as part of their marketing campaigns to highlight the current trend on revealing big data in an attempt to give statistically backing to how good their service and brand is.
Identifying Problems and Enhancing Personalisation To Limit Churn
Keeping customers is an imperative element of a subscription model for any SaaS company. Bluntly speaking, there are no recurring payments and revenue significantly reduced if customers leave. Growth from newer sales is often tricky, and money concentrated, making customer retention all the more critical to success.
An effective way to reducing churn rates is to distinguish which month of the life cycle is showing the times customers leaving. Using the sales data for each customer, you can ascertain if a client's sales motion is decreasing or increasing.
Knowing When Your Business Should Take Action
Information from the sales data can give you a detailed insight into when an action should be taken from your end to prevent that customer from leaving. Leveraging your data, you can decide not only when to intervene, but also identify the causes leading to customer churn.
Various subscription companies that look at their sales by subsets and realise their sales drop in the 2nd month. This is because there is a trend that customers choose to unsubscribe after the introductory offer period lapses, With this knowledge, businesses can begin to improve and target customer gratification and ensure less customers decide to cancel in the 2nd month.