Smart marketers know that data is a valuable strategic asset. It can be used to create insights and deliver robust and compelling offerings for their customers. It is helpful in all ways, from engaging content to personalising service. 

But many marketers struggle to extract value from customer data. Because it can be challenging to know where to start or how to prioritise suitable projects. 

This article looks at eight ways that can be useful for helping any business extract value from its customer data.

Why Is It Important To Extract Value From Customer Data?

Customer data is highly valuable. Why? Because it provides insights that you can use to improve your business. Data helps you answer some of the most critical questions of your business. 

With data, you can determine which products are selling well (or not), where people come from when browsing your site, what leads convert, and much more. Whether you’re an e-commerce store or a brick-and-mortar business, it is vital to know the insights of your customer data.

8 Important Ways To Extract Value From Customer Data

Let’s examine eight strategies to help businesses extract value from customer data. This data can be used for creating strategic assets to build a strong foundation.

Understand Your Customers

Understanding your customers is the most important step in any data-driven marketing campaign. You need to know who they are, where they live and what they like.

In order to do this, you’ll need to do some market research. The most productive way to do this is by interviewing your existing customers or doing a survey. You can also take help from social media monitoring tools to determine what people say about your company online.

Focus on the Data That Matters

Once you know your customers, focus on the data that matters most to them. This will help you identify them and their needs more deeply. For example, if you’re selling cars, focus on what kind of car they want and why they want it. 

Create a Data-Driven Marketing Strategy

The next step is creating a data-driven marketing strategy for each type of customer. This means knowing how much money each customer spends with you over time. 

You can utilize this information to determine how much effort should be spent on them as well as which tactics are likely to work best with each group of people.

Identify Your Most Important SEO Keywords

Your website’s SEO should be driven by the keywords you want to rank for. Using a tool like Google Trends, you can figure out which keywords are the most important to your business. 

It lets you see which keywords are most popular in a given area. Over time, this can make it easy to identify the ones that are most relevant to your business.

Calculate Your Customer Lifetime Value

This metric helps you understand how much money each customer is worth over their lifetime with your company. CLV is calculated by dividing your average monthly revenue by the average number of months each customer will remain with your business. 

In other words, it takes into account both how much money they spend over time and how long they’ll stay with you.

Conduct Effective A/B Tests

A/B testing is a powerful method for improving customer experiences and marketing effectiveness. By conducting A/B tests on different versions of landing pages, product descriptions or email campaigns, you can determine which one performs best with your audience and then adjust accordingly.

Audit Your Existing Marketing Efforts

Auditing existing marketing efforts can help you determine whether they work as planned or need adjustment. This means taking an honest look at what’s currently working and identifying opportunities for improvement.

Track and Analyze Everything You Can

It’s important to track everything as accurately as possible to understand what’s working for your business. Use Google Analytics to trace your website traffic and get an overview of which sites refer to your website and how many people visit each page.

Final Thoughts

After reading this post, we hope you better understand how you can use customer data for your advantage in marketing and sales. 

Let us know your thoughts if you get started using this advice. We would love to hear about the positive results you’ve experienced from these data-driven insights.