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The benefits of data analytics in small business marketing

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Although data analytics was an unimportant “nice for having” benefit that large companies had the advantage of, it’s now an all-encompassing business necessity. In recent times, as high as 60% of businesses employ analytics and data to boost overall productivity.

This includes small companies who have become more inclined to adopt analytics. In fact, as of 2020, an astounding 67% of small companies have embraced data analytics efforts. On average, it’s believed that small-sized companies spend around $10,000 per year on this. While we’re aware that analytics and data help in inventory or staff performance, as well as pricing decisions, what role does it play in marketing?

What exactly is data analytics to start with?

The term “data analytics” refers to the process that involves taking raw data and processing it to provide useful information. Utilizing automated methods as well as tools and algorithms data analytics can assist businesses improve their operations and overall performance.

Data analytics is now essential to businesses that it has created an enormous demand for professionals in data. Based on BLS US Bureau of Labor Statistics (BLS) graduates who study research and data analysis can anticipate up to 25% increase in employment that is more than the norm when compared with other professions. Every year, this results in approximately 10,000 openings for analysts, the majority of them from the businesses. Because of this the educational institutions are adapting what they offer to satisfy the growing demand for more analysts who can analyze data. This is the reason why the higher education curriculums that are designed for programs in data science cover the essentials of deep learning, data mining statistical modeling and data visualization along with price analyses. This is not just a way to create enough skilled individuals to meet the demands of analysts, but it also ensures that graduates are beneficial to vital industries like marketing, and other booming sectors such as the start-up industry.

In the field of marketing, data analysts are able to process data that can reveal the best strategy for growth, revenue, and consumer expectations. The majority of the time, this process is carried out when there is a launch of the new products or services. However data analysis in marketing is recommended to be conducted on a regular basis , regardless of whether something is new or not. So, companies can always keep a close reading of their performance.

What are the advantages of using brand analytics for marketing?

Campaigns that are targeted

Instead of spending huge sums of money for a broad method, marketing data analytics help you focus on strategies that are advanced efficient, effective, and pertinent to the market you want to reach.

Since data analysis typically concentrates on purchasing trends as well as point-of-sale transactions and consumer behavior campaign ideas can be developed and presented in a way that is that appeals to your target audience. This could take the form of customized advertisements and shopping experiences that are personalized to can make your marketing more memorable.

Because a targeted campaign is much more likely received well This means that your marketing efforts could attract new customers.

Brand recognition

Effective marketing isn’t just about selling the product or service. It’s about making a solid and well-known identity for your business. In the end, people tend to make purchases with a brands they know and feel a connection to.

By using data-driven marketing, businesses can pinpoint and distribute the most effective content for customers to increase brand recognition. A study of retailers have shown that the recognition of brands can increase each year by as much as 2.7 percent with the help of data analysis. Small businesses that have a strong the brand’s recognition can guarantee the long-term viability and growth.

Analyzing competitors

Knowing what your competition is doing is a method to improve your own initiatives. Don’t confuse it with espionage, the term competitor analysis refers to a thorough look at your competitors their products, marketing strategies as well as their failures as well as their successes. By analyzing this data you will be able to gather valuable information that will assist you to avoid the same mistakes, employ efficient strategies, and develop crucial differentiating factors.

Small businesses are usually competing for the same consumers Conducting a competitor analysis will ensure that your marketing strategies are more attractive. This can help increase loyalty to customers and increase retention. The phenomenon called “The Loyalty Effect” indicates that just a 5 percent increase in customer retention could lead to a gain between 25 and 100 percent.

How can small-scale companies begin by using data analytics?

Set your goals.

In the beginning, you must establish what goals for marketing the data you collect should be striving towards. This can be done by identifying issues that require being solved or milestones that require to be reached. For instance, at the peak of the COVID-19 pandemic, small-business studies revealed that 47% of businesses used data to enhance customer interactions as well as half used data to boost sales. If you can identify specific situations where your data could be of value, the insights you gain are more valuable.

Clean existing data.

In the average, smaller – to medium-sized companies manage about 78 terabytes of information. In the course of 12-18 months, this number is predicted to increase by 50 percent. If you haven’t been following a strict program of cleaning of your data, it could be “dirty.” In the event that filthy data is used in analysis, it could create inaccuracies. So, before beginning any data analysis, be sure you cleanse your data at home or by consulting an expert data analyst. So, you can ensure the information you analyze is up-to-date and up-to-date.

Sort, collect, and then process your data.

Last but not least, give the information to the partner company. While many small companies prefer to run their operations internal, data analytics are better left to experts with the expertise and the technology to optimize it. When your data is in the hands of the firm you choose, enhance the way data is presented internally as well. So the data you collect from your business can be used to make data-driven choices. This is by making data more easily accessible, understandable and relevant. This way, you’ll be benefiting from the data analysis you’ve collected and your marketing strategies are more efficient.

Because data analysis is very complicated, it’s often not the most straightforward option for small companies to take. Once you’ve acquainted yourself with the best method to use it, the use of data analysis in marketing could be among the most profitable decisions you can make.