In a data-driven gеnеrаtiоn like оurѕ, a lоt оf dаtа lау fаllоw. With the increasing imроrtаnсе рlасеd оn data demand, thеrе are mаnу mеrсhаntѕ who аrе nоt ѕurе how tо uѕе thе data at thеir diѕроѕаl— from соllесtiоn, analysis, аnd viѕuаlizаtiоn to drawing mеаningful inѕightѕ to tаkе thеir businesses tо thе nеxt lеvеl.
In this post, we’ll review how to use basic customer data to improve your e-commerce. There are three basic types of customer data relevant to grow your e-commerce landscape; Demographic, Geographic Information and Buying Behaviour.
Demographic information includes characteristic features of customers like age, gender, occupation, educational level, marital status and household income. The type of business you own will determine the kind of demographic information you need. Demographic data can be collected from customer surveys, chatbots, website forms, purchasing from third parties and social media.
How to generate revenue: Once you get a grasp of the demographic information of your audience, apply them to your targeted marketing initiatives and campaigns. So, if 80 percent of your customers are young adults, your content strategy should address young adult life. Content, photos, and Ads should focus only on that demographic; your content shouldn’t be focused on family life when the majority of your audience are students. If you don’t have the resources to pull such specific data, you may try out the Facebook lookalike ad program, where you can upload your customer email list and Facebook would display your ads to similar users. Facebook would do the job for you.
Geographic Information includes location characteristics features of customers like region of origin, residential area, city etc. Google Analytics can prove very useful to help with the location of website visitors. As much as you can, break down the data as small as possible like by city and state, urban vs. rural, and international vs. country.
How to generate revenue: Once you’ve put this together, then you can do mare targeted localized initiatives. You may also put more focus on promising regions well suited for your campaigns. So if there is a campaign for only those in Lagos state or Port Harcourt you can focus only on those regions other than sending bulk campaigns.
You need to place all your customers in segments; from high-value to low-value customers. This is mostly referred to as Customer Value Segmentation.
Take the average purchase per customer in the last six months
Consider some weighting for the tenure of the customer
Establish a median across all customers.
Group customers by ranking each one into high value and low value — above or below the median.
How to generate revenue: For this set of customers, you may try creating loyalty offers for your top customers. Run different promotions for high- and low-value customers. When you have a good customer value segmentation, you will know what products are suitable for high-value or low-value customers.
The most important thing is not the volume of data you have but what insights that drive revenue you can mine. Regardless of how many years of experience you have, having the right data and knowing how to use it will put you on a fast lane towards leads generation, customer conversions, customer loyalty, and rapid growth in revenue—somewhere down the line, you might also prevent some unnecessary expenses.