We keep hearing about business analytics and how it has the power to transform business operations. We also get that data is ever-increasing and every modern business collects it all the time. But how does one make sense of so much information?
This is where business analytics comes in.
Simply put, business analytics integrates business information gained from modern digital sales rooms, financial reports, customer feedback, and other sources with data science. This is done to derive insights and make informed decisions. It is a potent tool that can help organizations gain a competitive edge in the overcrowded marketplace.
When it comes to online sales, business analytics can be harnessed to learn more about customer behaviors, spot trends, and optimize pipelines and funnels. As a result, eCommerce players can look forward to enhanced customer satisfaction and higher revenue.
Of course, technology and expertise also have a role to play. The right analytical tools can help sales teams decipher the most complex data, thereby driving unstoppable growth.
Now that we understand what business analytics is, let’s learn about how it can help boost online sales.
Here are a few effective ways to harness business analytics to boost your online sales.
Determining where your online traffic is coming from is important because every business should know where their customers are learning about it. Once you have this information, you can work towards improving your visibility.
Data from your website and social media channels can help you understand which posts or ads are most effective in attracting your target audience’s attention. Based on your findings, you can focus your resources on what’s working in your favor.
For example, if your website blog is instrumental in drawing most of your customers in, you can publish more posts more often. Similarly, if the majority of your traffic comes from Facebook, you might want to invest more in Facebook Ads. The idea is to build your presence where your potential customers are, gain their attention, and encourage them to buy from you.
Do you often find that many customers sign up with your website, but don’t really order much? You might think that these accounts have little or no scope. But don’t give up on them just yet. You can identify these accounts and give them the nudge they need to become profitable customers.
Business analytics can be a huge help here. Once you know who these low-volume customers are, target them with special promotions and discounts. Customize these offers using the information you’ve already gathered from their accounts. Use the analyzed data to further segment your customers into smaller subcategories.
For example, if your customers are pet owners, categorize the pets into dogs, cats, fish, birds, and so on. Let your website make product suggestions that are in keeping with their changing needs and buying habits. Or send them emails with ideas for their next purchase. If they’re happy with your offerings, they’ll likely buy from you again!
Data analysis can help you identify the point in the sales funnel where your customers tend to drop out. If it’s at the same point over and over, you know where the problem is and you can begin redesigning your sales funnel.
A sales funnel journey usually starts when your audience becomes aware of your product and signs up for something, like a special discount or a free eBook. It’s a good idea to track this initial group of people and narrow them down further. You want to distinguish the qualified buyers from those who’ve only signed up for the freebies.
If you find that you’re losing potential buyers early in the funnel, you can use their data to find out the exact stage at which they’re opting out. This data will also help you identify the areas of improvement in the funnel. If you’re targeting the wrong customers, your data will help you find out where and how to tweak your targeting methods.
Put your sales data to good use with business analytics and AI tools that can reveal your best-selling products and services. Once you have this data, you can phase out and eliminate products/services that are not moving.
This is key to creating an intuitive eCommerce website. Put the fast-selling items on the front page while moving the non-performers to a clearance page or remove them from your offerings. Keep the focus on items that sell. The space created from the removal of non-selling items can be occupied by other products/services that your customers need, improving their shopping experience and your business revenue.
A thorough analysis of your customer data can help determine which product or service needs improvement. For instance, you may find that most of your customers prefer a product in a different style or color. Or they might want something completely different from what you offer. Once you’ve identified these gaps, you can work on closing them. Needless to say, improvising your product/service will help you sell more.
This is important to encourage repeat purchases from existing customers. Using customer data to figure out what makes them tick and sending them a special offer can work wonders in encouraging them to return to you. Alternatively, offer them something complementary to what they have already purchased or are purchasing. Customers return only when they’ve had a positive experience with your product/service. Now, give them a solid reason to keep buying from you and recommend you to others!
Today, every business understands the importance of tracking and measuring their sales efforts. However, setting up these systems is only the starting point. The real question is what do you do with all that valuable sales data that will come your way? Here’s a great answer: use it to boost sales. Business analytics is key to interpreting and using data correctly. It’ll help your sales teams stay on the right track while avoiding costly mistakes. Hopefully, the above tips will inspire you to integrate business analytics with your sales function and go beyond just achieving your sales targets.