We all know that data is the hottest commodity in the world today. But how does one use customer data to its advantage?  It’s simple: By analyzing data that your customers produce, you are able to better reach and engage with your target audience in order to give them content that would better appeal to them.

Take a look at a few benefits to using data to better connect and engage with your audience.

360-degree view of the customer

Probably the most significant benefit of using data is to get a better overall view of your customer. Even from a simple email subscriber or form fill, you can have a database full of demographic information. This can be factors such as where the customer is from, where they work, and more. Not only that, you can get some insight into some psychographic information. You can find out more about customers’ hobbies and interests, using that information to better shape your target audience.

Let’s say that we have a customer who is 24 years old, who is from Colorado. He likes to hike, ski, and bike in his spare time. From those tidbits of information alone, companies can design products to meet this specific set of information. This said product is more likely to succeed than fail. This is because it catered to the demographic and psychographic needs of the customer.

Personalization

Much of product design and marketing nowadays is based on personalization. The better you can customize your product or message, the more likely you are to personally connect with your customers. Think about it, how flattered were you when you got a promotional email that addressed you by your first name? While it may flatter you, marketers are doing it on purpose to spark the idea of connection. Even though you don’t know anyone at this company, you already feel like you do because of the personal touch on the email. Marketers are able to take a concept such as mass email marketing and bring it down to the one-on-one level of personal selling.

Not only does this work for emails; it works for product design as well. Remember that data we mentioned earlier? You can take the same data (or a variation such as social media data) and implement it into product design. An example of this would be taking numbers from last years’ sales and inventory. After skimming the data, you find that a particular model didn’t sell well and as a result, you had extra stock of it. Keeping this in mind, you make it clear to the designers not to create that combination, as it appeared to be a flop. Data is essential in predicting trends, but only if it’s used wisely.

Custom offers

Another area where data plays a key role is in creating custom offers for your audience. This concept uses data to give a customer an extra nudge if they are on the fence about a product. Through tools like geo-targeting, companies can incentivize customers to buy a product. This can be done by sending a reminder to their smartphone, reminding them to consider the purchase or send them an offer. How many times have you put an item in your cart only to receive an email reminding you about the item a few days later? Stores are able to better engage with their customers by providing offers like this based on a customers’ interests.

So many other services such as Goodreads and Flipboard ask customers to fill out their interests before showing them content. This data gives these sites an idea of what the customer might be interested in and only show them content that fits the description. Services like these are able to create curated content that is unique to the individual users, catering to their unique interests and needs. As a result, customers are more engaged and responsive to the content they are receiving.

Rooted in Personal Connection

Anymore, data is used by businesses in an attempt to personally connect with their customers. All of the efforts mentioned above—along with many others—are executed with the goal of better engaging with the people who use a product or service. By personally connecting through data, businesses have a better idea of who their target audience is and how to address their wants in a way that is both beneficial to the business and to the customer.

So what are you waiting for? Go ahead and give data a chance to help you connect and engage with your customers.

 

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