We have access to so much data and analytics about our audience now. With the increases in audience data, there has also been an increase in using Data Intelligence to inform business decisions. How well a business utilizes Data Intelligence, as well as all the data, insight, and analytics that encompasses, can dictate growth. How can we most effectively use Data Intelligence now to maximize business growth?
What is Data Intelligence?
What’s the difference between Data Intelligence and data analytics or data insights? We have talked in the past about the differences between data, insights, and analytics. Data is pure information. For example, data about your current customers (first-party data) is information such as average age, gender, location, or occupation. Analytics are the patterns that connect those things. Insight is the action connected to analytics.
Data Intelligence encompasses all of those things. As the word intelligence implies, Data Intelligence is using all the pieces of data to innovate and optimize business processes and decisions. We have access to so many different types of data streams now. Companies can use physical and online audience data as well as customer data. This includes First-, Second-, and Third-Party Data. Data such as current customer demographics, IP Targeting from geofencing, and social media demographics and analytics. Almost every interaction a consumer has with your brand can provide data.
When businesses combine physical location data with online data, they can build a more complete picture of the consumer’s experience with their brand. This more complete picture includes the steps the consumer has taken before they make a purchase. This fills in the gap that was missing from old-school advertising, understanding the why behind the purchase. For example, in the past, marketers would make a TV ad and then buy ad space in a specific area. Then after the ad ran, they would look at whether sales went up or down to determine the ad’s effectiveness. Sales numbers and statistics are pure data. When the why is connected to the pure data, that is what makes the data intelligent.
How can it drive business growth?
Using Data Intelligence to inform business processes and decisions is valuable to business growth. How? Understanding how and why consumers interact with your brand is the most important thing you can use to make any business decision.
A business is for its customers. Knowing what your customers need and why they need tells you how you can help them. Help and service are business. Therefore, using Data Intelligence as the driving force behind decisions gives a business the biggest tool for helping their customers. Data-Driven decisions = customer impact.
How can you use Data Intelligence to drive your business growth?
Saying Data Intelligence is integral to business growth is easier said than done. To apply Data Intelligence to your business, practical steps are needed. So, what are some Data Intelligence best practices that can help you maximize your data and therefore, business growth?
#1 Start with clear goals
Having well-defined goals will show you what data to focus on. Especially when it comes to marketing, clear intentions on things like audience segmenting, service goals, and new customer targeting will lead to greater success. Â
What are some examples of common general marketing goals? Here are seven:
- Increased brand awareness
- Expanded social media following
- Building out an email list
- Improved conversion rates
- Increased website visitors
- Higher website or social media engagement rates
- Driving a higher Click-Through-Rate on ads
Obviously, every business is going to need different specifics or metrics connected to each of these general goals. But that is the point of applying Data Intelligence. Using Data Intelligence makes sure the decisions you are making are the best for your business.
#2 Organize your Data properly
Since Data Intelligence relies on so many data streams, it’s important to keep all the data organized. There are two main components to organizing data. The first is choosing what information you actually need to organize. There’s no need to prioritize information that doesn’t have anything to do with your business or goals. The second component of organizing data is technology. Part of Data Intelligence is collecting as much relevant information as possible. Utilizing the proper technology is important to maintaining comprehensive data sets. Â
Most businesses use some type of CRM to organize their data. What is a CRM? In their simplest form, CRMs (Customer Relationship Management) organize a business’s customer contact information. However, unlike its predecessor, the Rolodex, most CRMs categorize more than just contact information. CRMs can organize and keep track of almost every interaction a consumer has with a company. Being able to see an overview of all the communication with contacts makes it easier to make decisions about things such as what channels to prioritize and enhancing customer service.
#3 Use Data Enhancement and/or Third-Party Data
One good way to have the most Intelligent Data is to use Data Enchantment (sometimes called Data Appends.) Data Enhancement is the process of going through your current marketing data, making sure it’s accurate, and then filling in any gaps. It can add additional information to current data, such as phone numbers, email addresses, or mailing addresses. Why is it valuable to Data Intelligence? Having accurate contact information for current customers makes it easier to understand them. The more information available on your current contacts, the more accurate data you will have to make decisions.
When using data intelligently, you may realize that your current data isn’t what you need. The point of Data Enhancement is having accurate information that is actually what you need. Which is perfect if you need to supplement current data. However, if you need entirely new data, buying Third-Party Data might be necessary.
True, access to some types of Third-Party Data has changed due to online data privacy. There are, however, many circumstances where Third-Party Data is still the best and easiest option. Many marketing channels connected to Third-Party-Data haven’t been affected by data privacy. For example, buying a list for print and mail marketing campaigns is still highly effective! Lists are also great for email and phone campaigns.
As we have seen, Data Intelligence helps businesses best understand their customers and their needs. Data Intelligence can be used to effectively make decisions that will propel businesses closer to their goals. How do you use data to inform your business decisions? In what ways do you think utilizing Data Intelligence could benefit your business?
