With approximately 20 per cent of small to medium sized enterprises not engaged with digital tools in any form, there’s a large chunk of Aussie small businesses missing out on the valuable insights customer data can bring their business. Dave Scheine, Podium’s Country Manager Australia shares five top reasons to get on the data train.
No asset is more important to how businesses operate, and succeed, today than data.
For local businesses, it’s easy to think that data is only accessible and beneficial to tech giants. In reality, every business – irrespective of its size and industry – can improve their operations through the collection, analysis and utilisation of customer data.
However, very few local businesses are using data, and even fewer are using it to its full potential. One of the main reasons is because it’s difficult to know where to start, what to collect and why.
In the recent Federal Budget, the Government announced a package of measures to boost digital transformation and incentivise local businesses to invest in their digital skills and capabilities. So not only has there never been more to gain from data and digital transformation, there’s never been a better time to invest in it either.
Here’s why local businesses like yours should collect data, and some of the simple metrics that can drive big results.
Driving business efficiency through data
Data takes the guesswork out of running a business by telling you exactly what your customers want and need. The more you know about your customers, the easier it is to provide the services, products and experiences they want.
Rather than second-guessing important and strategic business decisions, data provides clear insights about what to do; when, why and how.
For the best results, data needs to be collected and stored effectively. The days of excel spreadsheets and rolodexes are behind us, while multiple different tools create data silos – where data doesn’t flow throughout a business like it should.
A customer relationship management (CRM) platform is a great central location to store, organise and analyse data. A CRM has almost limitless possibilities and can be customised based on the needs of any business.
5 clever but simple ways to use data to boost your business
To start, here are five straightforward – but crucial – data points to collect and take advantage of.
1. Who are your customers?
Everything starts with key information such as a customer’s name, location and their contact details. For example, if your customers are Gen Z, you know social media is likely a more fruitful channel than email marketing, and vice versa if you’re targeting Gen X.
This foundational data is essential. Ultimately, every other data point is worthless if you don’t have dependable records of who and where your customers are, and how and when to contact them. When you know who they are, you can source other data points to understand them in more detail.
2. How do customers find you?
You might think it doesn’t matter how a customer finds your business, just that they find it. However, knowing how people usually discover your business is essential, and helps you become more strategic and targeted with your marketing budget.
For example, if you know that 75 per cent of your leads come directly from your website rather than your social media or email, it’s easy to prioritise SEO over paid social. If you get more custom through referrals than flash sales, you can provide incentives for your loyal customers to refer your business.
Through this data, you can target your efforts to high-yield channels, and ignore those that have little impact.
3. What are their habits?
Knowing what a customer purchased, why and how often makes it easier for you to boost engagement in new and existing customers.
For example, if you notice a spike in sales at a similar time every month, you can market your latest products or deals via SMS in the days beforehand, so you’re top of mind at the right time.
4. What are customers saying about you?
Word of mouth is still essential, and reviews have a huge influence on consumers. Podium data reveals that 93 per cent of consumers are impacted by online reviews, and data allows you to keep a pulse on yours.
Having data about those who have left you glowing reviews on Google, Facebook or any other public sites provides insight into your most valuable customers, and those who should be cherished. Similarly, knowing who has left an unhappy review allows you to reach out, remedy the situation and turn a potentially lost customer into a loyal one.
Through a messaging platform like Podium, you can make it easier than ever for happy customers to leave the glowing reviews that help your business stand out.
5. Are they loyal, ambivalent or unimpressed?
With data, you can segment your customers based on their experience with your business using CSAT (customer satisfaction scores) and NPS (net promoter scores). These are popular metrics that provide a rating and description of a customer’s experience with your business, your services, or the products they purchased from you.
More private than Google or Facebook, NPS and CSAT scores are forms of feedback that you can use to learn what your customers like and dislike about doing business with you. By highlighting your strengths and weaknesses, you can do more of what you’re good at and identify areas for improvement.
No longer should data be viewed as an inaccessible or confusing asset for local businesses. It’s more accessible and impactful than ever, and represents one of the biggest competitive advantages for local businesses today.
It’s what takes the guesswork out of business ownership and allows you to make data-driven decisions to overcome challenges and pursue long-term sustainable success.
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