Turning Data Into Dollars

Posted on Jan 7, 2019 - By Leesa Love

The saying “information is power” has never been more true than today in the midst of the Digital Age. The tech world is littered with information, covering everything from most widely searched terms down to individual user profiles. When harnessed properly, information in the form of raw data can help companies grow and thrive. Data collection allows e-commerce businesses to tap into this valuable resource and use it to create better products, improve user experience and increase overall revenue.

In short, data is the key to unlocking your business’s greatest potential. It contains all the details you need to know about your customers, your products and even your competition. As a result, data collection is now an integral part of building an e-commerce business. In order to rise above your competitors, it’s important to capture and utilize data to stay on top of evolving trends and technology.

Without data, all of your business decisions would just be a shot in the dark, hoping that one would stick. Data collection empowers your decision-making, because it enables you to build strategies based on quantifiable proof. It also allows you to test these strategies to see how well they work. According to certain studies, businesses that utilize data in their decision-making see a much higher success rate than those operating on intuition alone.

Once your strategies seem headed in the right direction, you can start turning that data into dollars. The first step is identifying the kind of data you need.

Types of Data Collection

In order to make decisions that are data-driven, you need to understand the different types of data that are available. Depending on the kind of data you collect, you can learn a lot about various aspects of your business. For example, profile data gives you valuable insight into the needs of your customers and the ways in which they interact with your products and services. This data often includes details such as demographics, interests and favorite products. You can utilize this information to find out which of your products are performing best and worst. This data can help you make improvements to boost customer satisfaction.

Other types of data can help you identify and solve revenue-draining issues. The use of traffic and signal data can point out areas of your website that are not generating as much traffic, due to broken links or similar problems. On the other hand, it can also reveal where most of your customers are coming from, including which links they use to arrive at your site. This allows you to focus on enhancing those pathways and finding ways to improve others.

Survey data is also a valuable resource, because it gives you an opportunity to ask customers about their experiences with your company directly. This type of primary data is valuable because it requires less analysis to be used effectively. Your customers tell you how they feel about your website, products and services and let you know where your company is succeeding or falling short.

All of these different types of data are valuable in their own way and can be analyzed for different purposes. With this insight, you are able to build a business centered on customer satisfaction and begin to reap the financial rewards of data collection.

From Raw Data to Revenue

Data can be both illuminating and influential on the success of your business. When harnessed properly, data can bring you closer to your customers and increase your revenue. Once you determine the types of data you have, the next step is learning how to utilize it effectively. This will allow you to accomplish tasks that are vital to the growth of your business. When using this data, you can:

  • Better identify your customers and grow your customer base.
  • Improve your SEO tactics.
  • Draft more effective marketing strategies.
  • Expand your products and services.
  • Build new and improved revenue systems.

In order to accomplish all of this, it’s not enough to simply compile the information you collect. You also need to analyze the data for patterns and inconsistencies. For example, analyzing purchase patterns enables you to market similar products to your customers and increase the likelihood of further sales.

You can also find out which products are most in-demand and which are not receiving enough traffic. Then you can modify your brand development and marketing strategy, to ensure that your products are reaching the right customers. Similarly, data may reveal a group of customers you did not anticipate. Knowing this information, you can begin to target this group and expand your audience.

It’s also important to take your SEO data into consideration as well. Make sure to examine the data you collect and use it to optimize your website. Improving your website for user experience not only leads to happier customers, it can also improve your SEO stats, including search ranking and site visibility. The better your ranking becomes, the more revenue you are likely to generate.

Overall, data is a vital resource that cannot go untapped if you hope to grow your e-commerce business. Once you master the power of responsible data collection, there is no limit to where your business can go.