Modern businesses that neglect to invest in big data are at a tremendous disadvantage in an evolving global economy. Smart companies realize that data mining serves many important purposes that cannot be overlooked. The portion of companies with data-driven decision-making models increased from 14% to 34% between 2014 and 2021, as more companies recognize its importance.
One of the most important benefits of data mining is gaining knowledge about customers. Smart companies recognize that they need to use data to accurately understand their customers, rather than rely on unfounded assumptions.
Smart Companies Leverage Data Mining to Identify the Best Customer Groups to Target
Marketing is intrinsic to the continued growth of any business. It is how each company thrives, with the absorption of new customers while retaining current ones, supplying them with the product or service they require, and putting a smile on their face at the same time. But this can be difficult when you don’t market to the correct group of individuals. It is for this reason that your target audience is so crucial. How do you know if your company is fully tapping into potential markets?
You will have an easier time developing an accurate customer profile with data analytics. Companies are spending $20.8 billion on customer analytics, because it has been so effective. The average company that uses customer analytics has 93% higher profits and 81% higher sales than other companies in their industry.
But how do you use data mining to better understand your customers? Here are three ways to determine the correct target audience for your business by leveraging customer analytics.
Utilize Primary Market Research Resources with Data Mining
By utilizing market research, you can begin to understand all the different variables that play a part in the success of your market, and, in turn, your business. Using data mining to conduct market research can help identify demographics and psychographics, market trends, your competitors, the economy, and much, much more. Acquiring this information will allow you to more effectively grasp an idea of the customers in your specific market, as well as how you might be able to tap into that consumer base.
There are a lot of different primary market research resources that you can use to find this information. You can find government data through sites like Census.gov or you can download reports from private market research companies. You can use a Hadoop interface to find the information that you need when you gain access to these reports. You can also download them with a web scraping tool like OctoParse or ParseHub and then use your own data analytics tool to identify the data you need.
Analyze Your Customer Data
Finding the right target audience for your business is extremely important to the success of your business, and shifting your aim towards those that will predominantly be interested in your service or product is without a doubt the wise business decision. However, it’s worth noting that your current customer data should not be ignored during this endeavor. There will likely be a certain amount of overlap between your current customer base and the target market, however, so analyzing your social media analytics and customer feedback, as well as your predominant demographic, can give you a good idea of who you should be advertising to.
This will be a lot easier if you have a CRM software application. Most CRM tools have analytics features built-in, which make it a lot easier to analyze customer information and make more meaningful insights.
Use a Variety of Resources
There are countless resources that contain relevant data that are available to businesses that can allow them to gather consumer thoughts, opinions, and demographic information. One method might include conducting internal surveys or sending them out via email, mail, social media, or other means. Some businesses might also choose to use interviews for one-on-one information, or, alternatively, focus groups, which gather information in group settings. Another easy option would be using cold-calling or telephone surveys to obtain data.
Customer Analytics is Essential for Companies Trying to Create Effective Marketing Strategies
Discovering the correct target audience for your business plays a vital role in furthering your mark as a company, regardless of if you work within the medical industry, like Northwest Surgery Center, the finance industry, or even the manufacturing industry. It’s all a matter of getting the data you need to make your business thrive. You need to leverage the right data mining tools to make the most of it.