In previous posts, I have described some of the many benefits of collecting and analyzing data. The process of monitoring and evaluating data for insights is changing the way that many businesses operate. The goal is simple \u2013 to reveal information that can increase a business\u2019 efficiency and\/or effectiveness.<\/p>\n
Unfortunately, a lot of the data that is being collected, especially by small and midsize businesses without the resources for advanced analytics, is very high-level. This means that only aggregated metrics are being collected, like the total number of website visits, or the number of Facebook likes. There is no question that this information has value. This high-level data can serve as a gauge for overall marketing effectiveness as well as to establish trend lines. However, a lot of good information is absent. What sources drove the most traffic to the website? Of those sources, which produced the most online conversions? These questions are just the tip of the proverbial iceberg.<\/p>\n
What I\u2019m getting at is, the more granular the data collected, the more potential insight that can be derived from the analysis of the data. Now, this isn\u2019t to say every company should collect every tiny piece of data \u2013 that would get expensive and time-intensive, very quickly. However, understanding how a business goal translates into an analytics strategy can start you down the right path of collecting and interpreting data on your clients and website visitors.<\/p>\n
However, each client base is different and will respond differently to the ways a company engages it. In fact, different segments of a particular company\u2019s client base may act in very distinct ways. For this reason, when evaluating and analyzing client engagement, the first step is client segmentation \u2013 identifying the aspects your of various customer groups, that make them differ from one another.<\/p>\n
These segments can be based on a number of factors. Your business may sell one product, but it could be purchased by three different types of consumers (for the sake of this example, these could be end-level consumers, contractors, and retail stores). Each segment will act uniquely and therefore your engagement strategy should be customized based on the client segment. Of course, you will have to determine what segments of your client base are relevant. These segments could be based upon identifiable differences between the types of consumers, or possibly just the amount of revenue generated over a specified period of time. Initially, keep things simple. You can always make your segments more advanced\/specific as time goes on.<\/p>\n