What is the value of mining data?

Relationships that are formed between customers and businesses have changed significantly in the last decade. It can be said that loyalty is a relic from a time gone by and that consumers are more discerning than ever before. Organisations are required to be wholly proactive when it comes to customer satisfaction in addition to identifying opportunities that they can leverageto sell more. In order to be preemptive, they must understand their customers – more than ever – are turning to mole sophisticated methods of data mining.

What is data mining?

Investopedia defines data mining as, “… the process used by companies to turn raw data into useful information.” Large organisations will leverage software to reveal patterns in batches of data, and SMMEs can monitor these patterns simply by looking at their Google Ads account history or Facebook Advertising data. Mining of audience and stakeholder data has fast become an essential activity in business, and companies that aren’t doing so risk being pushed down the market share ladder. There are ample benefits to mining date, and prioritising it could be the key to marketplace success:

1. Improved website optimisation

By assessing information regarding the people who visit their website, a business is able to tailor their online experience for those audience members. Google Ads, for example, can be used to glean data regarding website visitor age, gender, and broad geographical location – as well as a host of other data sets including time spent and bounce rates. Brainstorming audience target personas will paint a picture of who the company website should appeal to, and actions can be taken to optimise it accordingly.

2. Track performance over time

A company that has been mining audience and marketing data for years has a tonne of information to assess. Over time, trends will begin to reveal themselves, particularly once there is year-on-year data. This could reveal the time of year the company does its most sales, or how certain social events affect their website traffic, social media engagement, feet through the door, etc. Google Analytics is an excellent, no-cost tool to mine website and online PPC advertising data, and is definitely worth a try for any aspiring marketing data analyst.

3. Readjust your promotional approach

As said above, data over a period of time reveals trends, which a business can and should take advantage of. If, after mining data for two years, a shop notices that their inevitable festive season upturn of transactions is arriving much later than they’d hoped, they could try putting up decorations sooner in the year. Companies that know when their clients’ birthdays are – for example – can personalise their marketing communications and build relationships with them.

4. Improved marketing campaigns

Marketing data is critical in the effort to deliver exceptional products and services for clients. It’s all about giving them an experience; treating them to something a company has put effort into, with the consumer in mind. By looking at things like social media engagement and mailer open rates, a business gets an idea of what their audiences want to see and engage with online. Having the data is the first step; the next is to find the trends and take them into account when planning public-facing business activities.

Get in touch with the Digital School of Marketing

Data mining should be a staple in any marketing or advertising strategy. Learn how to strategise for marketing department success with our Marketing Strategy course. Check out the other DSM digital marketing qualifications if you’re looking for something different.