Recent years have witnessed the evolution of customer analytics from just-another-statistic to a powerful tool for curating highly personalized customer experiences.
Have you ever wondered why the use of website visitor tracking software is becoming a crucial aspect for marketing and sales teams?
Customer data analytics software enables a business to do a lot. This includes:
- Formulating lucrative marketing campaigns
- Predicting accurate customer behavior on your website
- Segmenting and adding them into the right buyer persona groups
- Working on customer experience strategy that encourage customers towards sales
That’s not all! You can even fuel your sales with a deep customer analytics tool as it helps your business gain a competitive edge and win customers. To understand this process better, let’s explore what is customer analytics, why it is essential for customer segmentation, and how you can use it to boost sales.
What is Customer Analytics?
Customer analytics is identified as a process where you use analytics data to study and comprehend the behavior of your target audience or existing customers. The study of this data helps a business to effectively segment their market into the right buyer persona and create strategies that lead to growth in sales.
Those who use customer analytics extensively for their research are more likely to perform in the corporate world. The customer analytics helps in growth of profit, RoI, sales, and growth.
With customer analytics and segmentation, you equip yourselves with customer behavior data that helps you develop targeted marketing strategies and improve sales team productivity.
Besides, customer data analytics help you:
- Monitor customer response and action to your promotions and marketing strategies that ultimately boosts sales revenues with sales funnel template
- Strengthen your overall campaign cost by focusing on buyer personas that are most likely to perform a desired action on your website or make a purchase
- Track open rate and identify customers who aren’t satisfied with your services and come up with idea for better open rates
This pretty much helps us understand what customer analytics is and what it can do for a business to gain competitive edge in the marketplace. But now it is time to see how essential it is for the customer segmentation process.
Why is Customer Analytics Essential for Customer Segmentation
So far we’ve understood that customer analytics can help a business monitor visitor behavior on the website. But it does more than that, it helps you identify:
- Whether customers are satisfied with their experience on your website
- If you’ve successfully engaged customers through well-sorted email marketing and email list segmentation strategies
- If you’ve acquired the right customers for your business lead generation tools
- Whether you’ve successfully improved the lifetime value of some customers
- If customer churn has increased or not
- If your social media tools have managed to attract more visitors on site or not
Such insights help you target your customers better with your data driven marketing strategies. But more than that customer data analytics help you perform better segmentation of your customers.
Segmented emails receive 14.3% more opens and 10.7% more unique opens than non-segmented emails.
You can personalize your customer segments using city, season, cart contents, browsing history, email campaigns, age, and gender, etc.
This segmentation can help you perform the following:
- Capture valuable insights that enable your business to understand the growing needs of your customers, their purchase intent and decision-making process effectively.
- Divide customers into different buyer personas based on their demographic data such as age, gender, income, religion, and more that gets captured by sales prospecting tools.
- Track and segment customers on the basis of their behavior patterns such as their browsing habits and purchasing decisions that help you boost B2B sales.
- Conduct A/B testing and understand what product or product versions do your customers like and are willing to invest in.
- Create and test strategic marketing plan that includes targeting of a specific customer segment with the help of best email testing tools.
- Create customer engagement strategies with a solid video marketing plan that targets different customer segments and results in better conversions.
How to Use Customer Analytics to Increase Sales
We are clear on how customer analytics can help your business track data and use it to segment customers in the right group. But now we need to expand our horizons and see how the use of cohort analytics can help your business grow sales efficiently.
1. Identify Potential Leads for Your Business
One of the best outcomes of using these customer segmentation and analytics tools is to identify B2B lead generation opportunities for your business. Their browsing pattern like what page did they visit next after landing on your website or the amount of time spent on each page helps you identify and shortlist sales qualified leads for your business.
What’s more, you now have tools like live chat software that help you capture qualified leads for your business in real-time and get automatically added to your customer relationship management tool.
2. Learn How to Price Your Products or Services
No doubt, that your pricing may change depending on the type of potential customer you plan to target. But to determine if your price point is accurate as per the audience you aim to target can be a real challenge. That’s when customer segmentation data comes to your rescue.
It helps you determine what your customers are looking for and understand how your price fluctuation impacts the overall sales and if your current price offering is being accepted by your target market or not. What’s more, customer segmentation and targeting data also helps you assess where your potential customer’s needs stand and if your pricing is competitive in comparison to others in the market. This helps you come up with smart pricing strategies that help you boost sales as a result.
3. Work on Customer Retention Strategies
So far we’ve seen how you can identify various factors through customer segmentation data that can impact the decision-making process of your customers. But now it is time to use those factors in our favor and formulate effective retention strategies.
That’s because good customer retention strategies will help you avoid the bounce rates on your website or abandoned carts and increase your sales eventually.
Improve Sales with Customer Segmentation & Analytics
There is no doubt that customer analytics and segmentation aren’t your only way to boost sales. However, data is important and can help you make better decisions at retaining customers with effective sales strategies. With data at hand, both your marketing and sales team can work in unison to bring more traction to your business that ultimately results in boosting your sales revenue.
Therefore, it is time you dig deep into customer analytics data and identify your sales opportunities effectively.
Jason Grills is a technical writer. He enjoys writing about emerging customer support products, trends in the customer support industry, and the financial impacts of using such tools. In his spare time, Jason likes traveling extensively to learn about new cultures and traditions.