Every business uses data day in and day out. From tracking inventory to SEO rankings, data give entrepreneurs valuable insights that can help them run their businesses more effectively.
However, all that data will be far more valuable when you use it to enhance relationships with your customers. At the end of the day, a successful business depends on the rapport it develops with its customers -- and in reality, all of your data-gathering efforts should keep your clients in mind.
Use data to better understand your customers' wants and needs.
Many believe that behavioral science is key to better reaching and engaging with their customers -- and for good reason. When you have a clear picture of the actions your target audience takes and why they do so, you can gain a better understanding of their mindset -- what motivates them to buy your products or services in the first place.
Market research that dives into the reasons why your customers do what they do can offer stunning insights that help you understand their goals and motivations when making a purchase with you. Is someone taking 10,000 steps a day because they want to improve their fitness (a focus on gains), or because they're worried about the health risks of a sedentary lifestyle (a loss mindset)?
These nuances should define your marketing, allowing you to craft your messages in a way that feels more relevant to the mindset of your target audience as a whole.
Your internal behavioral data can also help you identify where you lose customers within the sales funnel. Key actions such as abandoning a shopping cart or unsubscribing from an email list should be analyzed to identify and correct common stumbling blocks within your system. Offering a more streamlined approach makes it easier to fulfill customer wants and needs.
Use data to give customers peace of mind.
Your company's data doesn't just have to be for internal use. Quite often, companies provide data to their customers to offer peace of mind and increase confidence in their ability to deliver on their service promises.
This became especially apparent during a recent conversation with Niko Polvinen, co-founder and CEO of Logmore. In a time when supply chain disruptions have become the norm, Polvinen's company provides its clients with condition monitoring to help organizations detect shipping bottlenecks or other issues that can occur during the shipping process, such as exposure to extreme temperatures or shocks.
For businesses concerned about their logistics, the availability of such data provides a comprehensive picture that can enable immediate, actionable change. Quality data enables informed decision-making -- and ensures lasting loyalty to the company that helped provide such insights in the first place.
Offering data to the customer goes beyond B2B applications. As just one example, consider personal finance apps that help users track their spending habits, and then use this data to offer personalized tips and insights to improve. Companies that offer useful data as part of their services are poised to become an indispensable part of their customers' lives.
Use data to make things personal.
Today, companies have many ways to collect data from customers. Even collecting names and addresses during online checkout gives your brand the opportunity to personalize your marketing and make it more appealing.
Of course, companies have even more in-depth options for personalizing content for their customers. By keeping track of their interactions with your company, you can send the right messages at the right times, with offers or products that are tailored to their individual interests.
As just one example, studies have found that personalized marketing emails result in six times as many transactions as non-personalized messages. Cart abandonment emails or messages highlighting an offer or event specific to the recipient's geographic area are going to feel much more relevant and engaging.
The more your customers engage with you, the more data you can gather to further customize your messaging. Continuously gathering and analyzing this information will help you be more proactive in getting the right messages sent out.
Your business data can be so much more than numbers that you throw on a slide presentation. By considering how your data can help you learn more about your customers -- or how you can even integrate it into your services -- your company will be better positioned to turn information into strong relationships.