Getting smart with data a no-brainer for businesses of all sizes

The use of data to make businesses more productive and profitable tends to be seen as the preserve of large organisation with deep pockets.

However, according to Three Ireland business product manager Shane McHugh, even SMEs without the budget or resources to invest in sophisticated data analytics solutions can get smart with their data.

“There is a wealth of data waiting to take SMEs to the next level,” he says. “SME data is often held in CRM or ERP systems at best, and at the most basic level in a rudimentary contact database. But that data still holds immense value and can be used to improve conversion rates, lead generation, product and service development and customer lifetime values.”

McHugh advises SME owners to first decide on what data they want to harness.

“It is a good idea to focus on any areas where your business strategy is lacking, as data analytics might be able to fill the gaps,” he says. “For example, you might choose to focus on improving new customer acquisition or the satisfaction of existing customers.

“Data can reveal a goldmine of product ideas, business insights and new revenue streams that would otherwise go undiscovered,” he adds. “Once you have defined what you want to achieve with your data, the next step is to identify the data that holds the most potential.”

And companies tend to have more data than it might first appear.

“All social media platforms come with built-in analytics features that allow you to set marketing key performance indicators, monitor impressions in real-time and compile in-depth reports,” McHugh explains.

“Something as simple as an email address, when integrated with a customer relationship management (CRM) or inbound marketing system, can reveal insights into buying behaviour and how customers are reacting to your emails. What are the products your customers are most interested in? When did they last use your services? Which emails are they opening? Analysing the answers to these questions can reveal profitable ideas.”

Off the shelf analytics software to produce insights from this data is readily available at quite low cost. McHugh advises SME to choose a product with a web browser-based user interface that comes with visualisation options that allow data to be extracted to a variety of graph and chart formats. He also says it should have robust security features that designate who can create data analysis routines and interrogate data.

Personalised offers

After that it’s a question of turning insights into action.

“When you incorporate customer data into your email marketing campaigns you can significantly improve conversions rates,” McHugh points out.

“Simply including the recipient’s first name can make your emails appear more relevant and boost engagement.”

More complex data sets can also be used.

“For example, using customer browsing history can help you to target your customers with automated follow-up emails and personalised offers that include details of products they recently looked at. The more relevant information you can include in one email, the more chance there is of a customer opening it, reading it and taking action.

“Customers tend to respond well to hyper-targeted offers and experiences that are tailored specifically to them. Data such as membership anniversaries, birthdays and the customer’s last website visit can all help to create relevant communications via scheduled email, SMS and other direct mail formats. Don’t be afraid to ask customers for these details. If a customer hasn’t visited your website in over 30 days, use the opportunity to re-engage them with a personalised offer.”

The data can also be used to uncover trends which might harm the business.

“When a customer complains or has a query, do you have a process in place to log that communication digitally? When a customer issue is reported to employees out on the road or in another business location, are they able to log that problem in real-time on their mobile device?

“Being able to log and analyse critical business data allows you to identify specific actions or business processes that might be causing problems and take actions to remedy them. Smart SMEs ensure that customer-related data is available to as many relevant departments as possible and build a coherent strategy that can be adopted by everybody.”

The Internet of Things (IoT) represents another area of opportunity.

“Many SMEs are starting to switch on to IoT, capturing data from a plethora of connected devices,” says McHugh.

“This data provides insights into how customers are using a product, environmental conditions in which a machine operates or the performance of a corporate asset. The application of intelligent analytics to this data can help inform decisions and improve productivity.”

He concludes by advising all companies to avail of the opportunity to discover the true value of your data.

“The bulk of it may seem irrelevant, but with tools and strategies that deliver data enrichment, visualisation and exploration functionality, you can uncover valuable, actionable insights for your business.”