Data about a business website’s audience can help business owners and managers make more informed decisions about their businesses. This data also provides vital information that can shed light on the operational capacity and efficiency of a business, which will be the focus of today’s discussion.
Taking advantage of customer/audience data
There are different online channels that can be used to gather data about a business with an online presence. This information can then be applied towards developing the business’s level of efficiency across key areas. Business Analytics knowledge will be very useful if you want to exploit this information to optimize your business processes and hence get greater return.
The following are examples demonstrating how Business Analytics can be directed towards the improvement of a business’s operational process efficiency.
1. Inventory Control in e-Commerce Stores
There are costs related to unsold inventory being held in any business’s warehouses. In addition, there is an opportunity cost associated with the lack of a certain product from the stocks of any business – the customer will be forced to go to a competitor to find what they need, and the business will have lost a sale and a potential relationship with the customer.
As a result, it is essential to have a robust inventory management system when you want to sell products. There are many ways through which control of the system can be exercised, among them Business Analytics.
The aim is to capture audience-related data from product description pages and internal search engine searches. This will give the managers an idea of the demand for any given product over a period of time. In subsequent periods, the business will be able to anticipate and provide for peak seasons without tying up much of their working capital in maintaining high stock levels during periods of low demand.
The supply chain is then accordingly updated to limit both stock-holding costs and stock-out costs. Extra supply units will be availed for products in high demand in the online stores while those that are not highly demanded for will be reduced. Target audience data and statistics can also be used to forecast inventory needs over time.
2. Business Analytics Techniques for Web Analytics
Business Analytics knowledge can be used to study web analytics data – to collect, measure, analyze and interpret data and understand how users are interacting with your website – to understand the effect of different elements in pages and the site in order to create a difference in the website design, improving user experience and hence conversion rates.
There are many benefits that can be obtained from web analytics including:
- Design and UX improvement – web analytics is used to track the regular metrics from a site, using tools like Google Analytics and Moz Analytics. However, Business Analytics can help you to take advantage of big data from your audiences to get a better sense of how the audience interacts with your site and how you can improve different web design elements and site functionality to keep them coming back.
- Interpreting web traffic – big data from web analytics sources can be used to identify the most profitable referral traffic sources, which can help with future online marketing ventures, to determine where limited resources should be directed for maximum effect.
3. Collect Big Data on User Activity
This is highly beneficial for web design. Using the same web analytical tools, a business analyst can gather helpful audience data to collect mass data, measure it and determine how your site visitors interact with specific elements on every page of the site.
Because common web analytics tools will not shed light on individual interactions, you will need big data analytical tools to run different queries that can help you better understand various segments of your audience. This is excellent for A/B testing of various site elements and functionalities, especially prior to a major redesign project. You can determine how your customers respond to different marketing messages and calls to action and reengineer your design and marketing campaign accordingly.
4. Increasing Your Sales Potential
You can increase your sales figures by improving site design to ensure a consumer stays longer in your site and purchases extra products related to the product they just bought. For instance, adding a ‘Related Products’ where consumers are exposed to related products. To determine these associations, you can use business analytical tools to reveal common product associations, which will then be incorporated into presentation for each product on the online platform, thereby increasing the average value of customers’ shopping baskets at checkout.
Information on online sales can also be retrieved and analyzed to inform decision-making on how to position specific products within the site, including content and links to them in order to catch the consumer at a time they are likely to follow through with a purchase.
5. Marketing Technique Innovation
Consumers are continuously changing, with expectations that must be met if a business will maintain an edge over their consumers. Business Analytics can be used to analyze the behavior of consumers following exposure to the business using its marketing channels. This information can sift out new product trends, site element leanings and preferences, among others.
Online consumers are likely to take up or abandon a site/service for many reasons, therefore companies need all the data to remain as attuned to their changing expectations and demands as much as possible. Business Analytics can draw relevant relationships between different marketing information, which the business can then apply to create the best experience for its visitors and audience segments.
Apart from online business-related uses, Business Analytics is very beneficial to businesses today, being the age of big data. Businesses now have a unique opportunity to collect lots of data about their audiences which can then be directed at improving customer service both online and offline, improving efficacy of online and offline marketing campaigns, speeding up sales processes and improving product use, among many others.
Bill Williams works for a top SEO NYC company that offers link building, content creation, keyword optimization and other SEO services. All services offered are guaranteed white hat SEO.