Big data is no longer a luxury for businesses. It is a vital to any company that wants to succeed in all but the least competitive markets. In the information, there are companies with big data strategies and those that fall behind. Big data and business intelligence are essential.
However, the success of a big data strategy relies on its implementation. VentureBeat reports that only 13% of companies are delivering on their big data strategies. You need to know how to use big data strategically if you want your company to become profitable.
Effective Use of Big Data is A Must if You Want to Make Your Company Profitable
Business is enticing, challenging, and filled with opportunities, should you turn the right idea into reality. But what even is the right idea? There are that many factors at play that you could argue it’s potluck. One idea might not work for one person, and for the next person, the idea might make their dreams come true. B2B business, in particular, brings a unique set of challenges that B2C companies don’t face. Longer buying cycles, more risk, and larger transactions.
This is where big data comes into play. You can use data to better understand your customers and improve the efficiency of your operations. This can make all the difference in the world if you are a new startup trying to become more profitable.
Below, we will explore how you can use big data wisely to make your B2B startup one of the 2 in 5 that becomes profitable.
Focus On Data-Driven Lead Generation
It’s important to remember there’s a never-ending list of techniques and tactics and the right places and timings that make for a successful business. One of these things is lead generation. Interestingly, 63% of marketers consider lead generation their biggest challenge – maybe because that’s what everyone else is doing.
The good news is that big data can make lead generation strategies more effective. You will be able to use data analytics to evaluate the conversion rates on your lead opt-in pages, determine the average value of various leads acquired through different channels and compare those figures against the cost of lead acquisition. A data-driven approach to lead generation can help you get the highest possible ROI from it.
Not only are you competing with other startups, but you’re also competing against big, well-known brands with loyal customers and good reputations. One way it’s being made easier is through marketing automation software – a new trend that’s getting good results for many businesses, so much so that 80% of marketers are now using it. Another interesting stat, 77% of marketers who use automation software gain more leads than those marketers that don’t.
Big data has also made it possible to automate the lead generation process. Working with marketing agencies that use automation software could prove beneficial.
Don’t Forget to Use Data Analytics to Improve Customer Retention
Big data is also great at helping you improve customer retention. This is the basis of most CRM tools. They retain databases of your customers and help you use analytics software to better determine customer engagement and satisfaction. Customer data is actually key to boosting customer retention.
It’s easy to get caught up with customer acquisition as a start-up and forget about retention – something more beneficial to focus on than acquisition. And, did you know, 75% of customers say they favor using brands that come with rewards? In comes a lucrative b2b customer loyalty programme as the savior. A good b2b rewards program can elevate the customer experience, help retain customers, and even help you find new customers.
Plus, it helps you escape the trap that is a discount. Yes, discounts work well for attracting new customers, but they’re harmful to profits in the long run. You might offer a 10% discount on large orders for loyal customers as part of the b2b incentives program you set up. Offering larger discounts to every customer can be detrimental.
Elevate Shopping Experiences
The shopping experience is everything to B2B sales – especially since the buying cycle is longer. The world of B2B is now worth over $1.8 trillion – with the market expanding day by day with an influx of buyers thanks to the shift in digital technologies. Before eCommerce, B2B websites were nothing more than a place to browse – most transactions happened over the phone or face-to-face.
Now, the best way to elevate the shopping experience is to bend to the digital demands and create a responsive, interactive, and informative eCommerce website that simplifies sales. That’s why eCommerce website builders like Shopify now accommodate B2B websites. Work with a website builder to create an easy-to-navigate website that forms a portal for customers to shop and browse without the need for constant back and forth.
90% of B2B shoppers start their buying experience with a search – let your website be the first place they look.
This is one of the best ways that you can use data technology to improve your business. You can use customer data to determine how buyers behave, both through your online and offline channels. This will enable you to optimize your business model accordingly.
Data Analytics is Crucial for Startups Trying to Boost Profitability
As mentioned, those are three key areas to focus on – and they’re small in comparison to the bigger scale of growing a business. Growing a B2B business will come with hurdles, setbacks, and yet, in the end, the highest reward. The good news is that big data makes this a lot easier. The B2B market is worth nearly double what B2C is – the potential profit margin is huge. You should use big data to capitalize off of it.
The post Use a Data Strategy to Make Your Startup Profitable appeared first on SmartData Collective.