Leveraging Data for Customer Insights & Sales Growth
Man is not a math formula. The great writer Dostoevsky wrote that in his novel Notes from Underground. Predictability is a pipe dream in our opinion; after all, if it were possible, who would not win in the stock market?
However, patterns are predictable. Companies should study patterns of behavior to improve conversion rates. In the direct mail industry (where I come from), testing was the key to this type of metric (see A/B testing below). Analysis of a customer behavior is important too (see past behavior analysis) because while it might not predict what a customer will buy, it gives you clues that you can use to shape buying patterns for other customers. This type of study is what spawns case studies for companies.
Here are some of the ways to use data for improved conversions.
- Analyze past purchase behavior to recommend relevant products (AI-driven product recommendations). Be careful of using AI for this. Our recommendation is to conduct such studies “off line” – that is, taking a dataset and using AI and your research team to study the behavior of customers.
In one case, we thought it appropriate to summarize the verbatim comments from a major piece of research for a client. Verbatim comments as you are aware are all over the place; standardization usually is the difficulty. The more verbatims, the more time required for standardization.
Using AI, however, changes the equation. It took the AI tool we use ten minutes to come up with compelling points that it aggregated the raw data into, and then we simply had to validate, and add our own unique knowledge to the paper.
That deeper dive into the specific areas of interest and analysis of the comments for key insights regarding our client’ were availability, sales/rep visits to target audiences, and pricing. In addition, those three insights spawned others that we further enhanced into focused, actionable strategies and ideas.
For example, marketing efforts are seen as insufficient in certain areas, with customer themselves suggesting increasing brand visibility and providing more promotional materials to improve recognition and drive sales. And while people always complain “there’s not enough,” chances are they have no idea of really what IS available.
One of the ideas we offered was developing a robust library of marketing materials (brochures, posters, flyers) for distributors and retailers to use in-store or online – materials that the client already had on their website. What the client wasn’t aware of was how often they were being accessed, which our other idea – reverse IP lookup – would tell them. And by whom!
- A/B Test everything (landing pages, emails) to optimize for higher conversions. As mentioned earlier, A/B testing is important for honing a strategy. mail tactic that often tested different pricing, offers, etc. Today, A/B is used for example on webpages, email blasts, positioning statements, etc. to determine which performs better based on real user behavior.
So for example, you can test headlines, calls to action, images, videos, and of course, pricing.
The A/B involves splitting your audience into two equal groups, showing one version (A) to one group and the other version (b) to the other group. Sometimes, splits within group are also made to deepen the understanding.
To run the tests, you can use Survey Monkey or tools such as that. The key is always control of your file (list) to maintain the credibility of the results. In the end, it should reduce your guesswork, help your conversions and cut into controlling marketing dollars.
Keep reading our series on How to Target and Hit the Right Customers: Deep Dive Insights.