You hear it everywhere, big data is the thing you need. But what is big data and how do you use it? In our marketing application, we combine all your data with public data and we place this in the correct sequence of events, public and campaigns. This blog post describes how this data can help you to better understand your visitors.
Big data is any large, complex database that is difficult to process with traditional programs like Excel. This data has a lot of potential, as long as you know how to use it. Sales and marketing data tell you a lot about your audience. It provides valuable analyses, but the information must be well organised and compiled to provide you with clear insight.
Marketing is about reaching the customer at the right moment, big data gives you better insight into this. You can investigate the orientation and purchasing habits of your visitors, learn to better understand your visitors and to forecast purchases. But we have noticed many organizations are put off by the enormous amount of information and they find it difficult to analyse and come to the right conclusions.
Customer personas and why you need them
Big data is very useful to understand your visitors, but it’s not everything. Using personas, you create ‘real’ people instead of general target groups that are difficult to target in reality. You can spend your marketing budget just once, so obviously you want to do it as effectively as possible. By using personas, you can focus campaigns specifically on your customers.
Personas are mainly characters representing different segments of your clientele. It is a very detailed description of a visitor.
It contains information like demography, sources of influence, motives, average income, lifestyle, interests, who influences their purchasing decisions, personal objectives, how visitors react emotionally to events, why they attend your events, etc.
Which customer is your best customer?
It is good to know which visitors are the most valuable, so you know what you have to focus on in future. Organisations mostly define customers who spent the most as their most valuable visitors. But are they also the visitors who are the easiest to keep, and the most loyal to your organisation in the long term?
This is where big data comes to play. Big data calculates different factors that help you gain more information about your visitors. You find more information on your visitors’ personas by calculating the following:
Average size of purchase: How much do your visitors spend on an event? Establish this per personality. Keep account of the fact that people base their purchases on the value of the event, not only on the price of the event. Would you be able to sell more to one of your personas through a promotion stimulating interest in other events?
Lifetime value: How much money does the visitor personality spend in the long term? Is it a lot or just a little? This provides you with insight in the relationship you have with your clients.
Acquisition costs: How much money did you spend to acquire this type of customer? If you have spent a lot of money on this, it is to be hoped that this type of customer will not be expensive to retain. Do these customers return? If they don’t, you have to evaluate your campaigns again.
Retention costs: What do your visitors require to come back more often? Do they need a lot of communication? It often costs more to acquire a customer than to keep one. Make sure you do your best to build relationships with your visitors and that you give them the feeling that they are important. By understanding your customer, you can send fully personalized mails. This allows you to address them better than in a general newsletter and they feel valued as a customer.
Customer satisfaction: Are your visitors happy with your product or service? Are there groups of satisfied and unhappy customers, and what are the differences between them? Investigating this can expose flaws, suggest necessary improvements and it may even show you that you will need to adjust your expectations of your visitors.
Customer characteristics: Are your intended visitors really the ones that buy from you? If not, who are the customers then? This helps you to refine your visitors’ personas.
To what extent do these standards line up with your previous assumptions about your customers? The answers give you the insight to group your buyers better and to customize your targeting further.
Try to discover demographic and behavioral trends associated with your most valuable visitors (visitors whose lifetime value is higher than the combination of purchase and retention costs) and link this to your personas. Look at the less valuable customers too and those who appear to be insignificant (passersby). The desired end result is that you have established different groups of customers based on their behavior, demographics and earnings. This makes it easier to focus marketing campaigns on the right audience.