Times, when
company executives used to go through phone books to call every name to flog
them, are long gone. Businesses now rely on a system which explores data for
insights, to make data-driven decisions, also called business analytics. BI or
business analytics is essential for every organization that is constantly
striving for growth and looking for opportunities to increase their revenue,
brand image, and unlock commercially relevant insights. With the help of
business analytics, organizations can uncover new audience niches, new markets,
areas of development, and much more.
The way
sales and marketing work have completely changed, ever since the rise of Big
Data, AI, BI, and data analytics. They use measured activities to plan
campaigns for, higher ROI, better performance, and faster success.
To begin with, let us look at three
quick definitions of business analytics:
· Descriptive analytics - This is where
you look at historical data and performance.
· Predictive analytics - This is where
you use past data to predict a future outcome.
· Prescriptive analytics - This is when
you determine the best course of action.
Let us understand how business
analytics can help sales and marketing, in making optimized business decisions:
Lead Scoring
Lead Scoring
is a process which uses business analytics to score leads based on their
readiness to make a purchase. It helps both the sales and marketing divisions
to collaborate more effectively since each lead is different.
Segmentation
Segmentation
is a process which involves segmenting leads using their demographic and
behavioral data. Business Analytics helps the sales and marketing teams in
planning specific lead nurturing campaigns and move them down the sales funnel.
Reduce Churn Rate
For any
business to grow, it should have a high growth rate than the churn rate. The
rate of attrition or when a percentage of subscribers back out or stop their
subscription within a certain period, it is called churn rate. Business Analytics software helps the sales and marketing teams
in identifying warning signs and provide necessary nurturing.
Targeted Content
Business
Analytics help in understanding, which content suits best for which leads to
help the sales and marketing team in targeting them with tailored content. By
distributing tailored content to leads, the organization can improve its
communication with the leads, and this could later be converted into sales.
Upselling and Cross-Selling
Using all
the available information, businesses can either upsell, cross-sell, or combine
both to increase the bottom line using advanced business analytics. Customer
Lifetime Value (CLV) can be predicted using patterns of a customer's buying
behavior.
Product Fit
When
companies have all the information regarding sales and leads, they can better
understand what the customer exactly wants using business analytics. It helps
them in developing better products in the future, keeping the customer needs in
mind.
Marketing Campaigns
When all the
information is at your disposal, you as a business can better strategize,
develop, and implement marketing campaigns. Business Analytics helps both the
sales and marketing divisions in improving the overall performance of the
company. When marketing campaigns are drafted using business analytics, risks
of failure are significantly reduced.
According to the Entrepreneur, the Big Data industry
will be worth an estimated $77 billion by 2023. Also, according to Forbes, the
big data market is projected to grow from $50 billion in 2019 to $103 billion
in 2027.
All these
exorbitant amounts of information are related to, our interactions, our
behavior, our endless activities across our businesses. They are all connected
to devices and our relationships with them. Business Analytics helps businesses
take heaping servings of this data and turn them into actionable insights.
Ever since
the word had been coined, business analytics has been a buzzword, especially
the technology companies. It has set a benchmark in the way data is being used,
and the sales and marketing division is no exception. It plays a vital role in
how the sales and marketing teams come together in delivering optimal results for
the company.
Conclusion
Business Analytics is the key to deliver successful marketing
campaigns. They integrate business metrics and results with advanced strategies
to create a huge impact across the customer life cycle. Business Analytics
requires a strong understanding of metrics for modeling framework and scoring
categories. Marketing analytics tools allows sales and marketing teams to
make informed business decisions. It doesn't always guarantee success. It
merely increases the likelihood of success.
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