The Money Is In The Metrics: Data Driven Decisions Form The Right Strategy For Growth
The early startup phase of your business is a very exciting time because there is an immense amount of opportunity and success to be had. It’s also a time when you are most agile to work on ideas and implement strategies without the crippling setbacks caused by decision hierarchy and process.
There will be, at one point or another, a time when your business has collected a considerable amount of information about clients and industry professionals to begin making logical decisions, based on data, which allows you to strengthen your direction in business and sow the seeds of growth.
This concept, according to Extraprise, is seen as real time revenue optimization.
In their own words, it’s:
“B2C and B2B marketing that optimizes value to the buyer at any stage of the customer life cycle, dramatically increasing the propensity of that customer to purchase. Think of it as marketing at the right time, in the right place, and with the right offer in the way the buyer wants to interact with you.”
Let’s rewind for just a moment, however.
Marketing is often seen as this front-loaded element of a business; it’s what gets your name to the public and what draws them in to complete a purchase.
Businesses invest a great deal of time and resources into marketing strategies and channels but not as much once the individual is within the fold of the sales funnel and customer-base. These businesses will place a heavy importance on the actions to bring individuals to the business but often neglect them once they have completed the purchase which prevents the customer from feeling as if they are truly part of a brand and community since they are so quickly dismissed.
Additionally, businesses that front-load all their efforts into marketing without taking care of customers on the back-end lose out on many opportunities for up-sells and cross-selling.
Last but not least is the fact that businesses often collect a great deal of data through analytical platforms and customer feedback but rarely use this information outside of injecting it back into the marketing campaign or tweaking a product or service – they are leaving money on the table.
The implementation of data driven decisions brought about by analytics, tools, and services will introduce the concept of revenue optimization by processing and giving you an understanding of elements of the cycle, including:
· Retention rates
· Acquisition rates
· Product/Service penetration rates
· Channel behavior and effectiveness
· Customer life cycle
The use of this data can go on create a hydra-like marketing strategy which creates multiple channels and segments for the efforts which engages and nurtures those coming to the business (B2B and B2C).
If you are familiar with the concept of A/B (split) testing than this type of revenue management and optimization will make sense for the business. The data will provide the insight as to which particular elements of the business (pricing, contact, inventory, etc.) could benefit from a small change which results in higher revenue; this increase in reach, due to a growing budget, will expand your access to marketing channels, feedback, and sales opportunities by striking when the iron is hot.
As it’s been said, here on YoungStartups.com, there are times when you need to find a cut-off point in terms of gathering info and begin executing. The data you gain through tools, services, and gut instinct will provide you with ample information to make the right decisions for your business without becoming too overwhelmed by decisions – it’s all laid out there for you – all you need to do is call for action.
Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.