Whether you’re a scientist, student, or business owner, data is a crucial component of your research. It can help you answer questions, control risks, and find trends.
In this post, we’ll explore why data science is important, 5 reasons you should be collecting it and what sort of questions you might be able to answer with it.
Why is data so important for improving marketing and communications?
The big question, why is data important, is often asked when looking at ways to use to data to improve marketing and communication with your customers. Data, if used correctly, can make a difference in reaching the people most likely to respond by making a purchase or asking for more information.
For example: If you target your communications towards young adults aged 18 – 30 living predominantly in poorer areas, but your product is more suitable for over 40s with an above average disposable income, the follow up rate and sales will be low.
Having data which tells you the age range, location, disposable incomes of your potential customers, and specific interests (related to your business) can give you two options. Target only those who fit the criteria of being able to purchase your product straight away, or improve your marketing and products to appeal to other groups.
An example of this could be relating to a specific group by understanding they may not be able to afford your product right now, but pointing out you allow payment in instalments. Highlight how a specific product or service will benefit them, using the data you have for them. Email marketing platforms like MailChimp allow you to send marketing emails in segments, so you can tailor each email to specific groups who can relate to the content, using segmentation. The added benefit of using data here is time management, when implementing digital marketing strategies.
Why is data quality so important for improvement?
The quality of your data can far outweigh the quantity. There’s little point in knowing about aspects of your customers’ lives, and details that have nothing to do with what your company is offering them. Using data to determine their buying and behaviour patterns can be more useful. Information such as when they are most likely to buy / if they have purchased from you in the past, what they are most likely to need or if they might want to purchase upgrades or accessories (if applicable) can all help to increase sales.
If they haven’t made their first purchase yet, you could enter them into a prize draw in exchange for this information. Including a question such as what they would pick if they won a voucher from your company, can prompt them to look around your website, to provide an answer. If you get a large response, the information gathered may be a lot to sort through, which is why you might consider data science for using it most effectively.
What is a data scientist?
Data scientists can be used in fields other than just marketing; including I.T, the health sector, education/academia and finance. Using all the data from several resources, they can pinpoint issues which might cause problems in a business, as well as those that have led to some level of success and can be improved on to further increase sales. In terms of making improvements, they can shape the results from the data to help highlight and target customers’ needs, by determining which new products or services there is a need for and how these might benefit people. Your business can then use this information to appeal to customers or potential customers.
Why are data analytics important for your online presence?
Reaching the customers on your mailing list is great in terms of marketing, but not everyone likes to have newsletters and marketing communications filling up their inbox. If they’ve never purchased from you before, or only use your company occasionally, it may take several purchases and exceptional service to make them take that step and sign up.
Until then, they may check out your website or follow your company on social media. Using analytics to see which posts get the most comments, likes and shares, and the location, ages and interests of those who engage with your content, can help to shape your company’s marketing strategy and the products on offer. Finding this information can be easier on your own website, but it’s still possible to gather and evaluate the data from your social media sites.
Using analytics
While many social media platforms have their own analytics, it’s preferable to get a more in-depth look at demographics, trends and other data relevant, to improve your online presence and customer engagement.
Some of the best analytic tools include ShortStack, Google Analytics, Sprout Social and HubSpot. Each will have their own pros and cons. For example: HubSpot can also be used as a CMS (content management system) but can be expensive. While Sprout Social can be used to schedule posts at optimum times, but doesn’t always provide detailed data from certain social media platforms. To find the best one for your company’s needs, you will need to spend some time looking at the features of each one, and possibly trialling one or two.
Why is data privacy important?
Although it’s crucial to gather and use data to improve your business, it’s just as important to respect the privacy of those who use (or might use) your business.
Inspiring trust
If you use data in any way you haven’t been given permission to use it, such as selling to third parties, contacting people without their permission, you will lose their trust and most likely their custom too. If people can’t trust you to do the right thing with their information, they won’t trust you with her hard-earned money. You’ll also be expected to store their data securely, so it isn’t leaked unintentionally, or hacked. While neither of these things will be directly your fault, if someone trusts you with personal information, keep their trust by protecting this data from people who will misuse it.
GDPR (data regulation protection regulation)
GDPR involves keeping customers/potential customer’s data safe and using it in the right way, as explained above. It also means, in simple terms, if you want to add people to a mailing list you need their permission. The same goes if you want to share or sell their information with other companies. Whether they have shopped with you or not, has no bearing on being able to use their info to contact and market products to them.
In many cases, there will be a limit of how long you store the personal information and rules about sharing any data you’ve gathered using analytics. Unless they have given you permission, you won’t be allowed to use their name as a specific sample in your marketing communications.
What data needs protecting?
Any sensitive information should be safeguarded. Depending on the nature of your business, this can include contact details (names, address, phone numbers, emails), bank cards, other financial details, and health details.
Why is data so important to your business for saving money?
Without data, you can’t see the full picture in terms of marketing. Not only will you send communications to groups who find the content irrelevant to them, but you will waste time, resources and money. You could be targeting these at customers who will find the content readable and want to find out more, potentially leading to sales.
Marketers can spend more time on strategy
If your marketing team are targeting their campaigns towards specific demographics, they can focus their efforts on fine tuning the campaign so it resonates with the intended audience, rather than spending days or weeks on a campaign that won’t reach its full potential.
Detecting fraud
Data can be used to detect fraud by detecting anomalies; and protecting your company’s and your customers’ money. Any fraud that a customer experiences will reflect badly on you. There will be little point in saying it isn’t your fault; they will be reluctant to use your company in the future, in case it happens again.
There are many more uses of data, but these are some of the main uses. If used within the guidelines, the information provided by customers, and data taken from analytics can help to improve the running of your company in several ways; from saving money to targeting content and making the recipient feel understood.