Data Deluge: How to Narrow Your Clients' Needs

Dixie Somers

May 04, 2017

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Your company lives and progresses in the information age. From faster computers to Big Data analysis, the attempt to manage and utilize all the data your company has gathered about customers can be overwhelming. You may even have a department solely dedicated to getting the most out of the data your company has collected on all the customers you provide with products and services. Like all savvy entrepreneurs seeking to get more out of the data collected, you want to make sure all this data collection is better helping you to reach out and fulfill your customer's needs more effectively. The following are a few tips to help you with this endeavor.

Database Organization

Any time a company gathers large bodies of data on its customers, it is vitally important to aggregate that data into a functional database for easy access. The better organized the data, the more effective the data being gathered by your company will be in its overall usefulness. In addition, using nicely developed database algorithms to isolate customer history and other generalized information in a flash can make all the difference in a pinch. This is especially the case, for example, when a problem arises and your customer service department needs access to critical customer information at a moment’s notice to put out a major fire with a growing number of potentially dissatisfied customers before the situation gets out of hand.

Simply having the customer data resources to contain such a problem can show your customers that your company is competent in how it handles a major problem. For example, a product recall issue or correcting an error on the part of your company displays a genuine show of professional concern for your customers that is often missing in the way modern companies do business.

Consumer Profiling

With every business, there are simply some consumers who are better suited to spend time reaching out to than others. These customers are what may be termed ideal customers. By developing customer profiles, built from all the data your company gathers on the consumer base it has received information about, you will begin to produce an electronic picture of which individuals are more likely to fit the mold of what you view as your company's ideal customer type. The individuals that possess the most data markers for what your company imagines is an ideal customer, the more likely such an individual will be receptive to your customer outreach program. This in turn provides your company with the luxury of knowing where to apply its marketing resources more effectively to improve its profit margin.

Demographic Studies

When you have a massive body of customer data to source from, it is easy to start zeroing in on metrics that expose people of a given demographic oriented to certain predictable buying patterns. If you notice that people of a given age are more regularly purchasing certain products than others, this can help you to improve the way you place and display products throughout your store to tweak sales on such items.

Comparative Purchasing Metrics

One of the ways companies like Amazon use customer data to improve sales volume is through comparative purchasing metrics. As purchases of one product are made, these companies compare this against other products people bought who also purchased the first product of interest. When there is a high correlation between people purchasing Product X also purchasing Product Z, it becomes possible to use this information to recommend to consumers who are about to purchase Product X that they might also want to purchase Product Z. Sometimes, just knowing that other customers have these purchasing patterns is enough to compel a customer to go ahead and take the recommendation. Customers tend to trust the purchasing habits of the pack, so there is nothing wrong with using this information to your company's advantage.

Deep Text Analysis

There are always hidden patterns in large bodies of data. From consumer buying habits to trend recognition, the deeper and more sophisticated the text analytics done on large volumes of consumer data, the greater the probability that your company will stumble upon a trend that can help you zero right in on products that are flying off the shelves with regular rapidity. Armed with this information, your company will be able to orient its inventory purchasing methods to better remain in step with the increasing sales volume of these highly purchased products; thus, making it possible to improve your company's ability to drive profits up for as long as such a trend is sustainable in the marketplace.

Conclusion

Customer data is a valuable tool for virtually any company attempting to crawl inside the heads of its customer base. The more your company understands what your customer wants, the easier it will be able to match your customer's needs to products and services that meet those specific needs with amazing accuracy. When your customers believe you can anticipate their needs and help them reach a point of genuine buyer satisfaction, this is how long term customer loyalty and repeat purchasing patterns are cemented into place that benefit your company's ability to generate solid profits for years to come.