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Data-driven Decisioning: A Game Changer for Business Owners

May 14, 2018
Jamie James

Data-driven decisioning is a game changer for business growth.

When you’re leveraging data for your business, as opposed to simply guessing at numbers and figures, you can effectively decide what is working, what isn’t, and make the necessary adjustments as it relates to the revenue and growth outcomes you desire.

Data-driven results enable you to:

  • Be Laser Focused
  • Tailor your Message
  • Enhance User-Experience & Design
  • Improve Functionality
  • Eliminate Guesswork
  • and Much More

We’ll show you how eliminating the guesswork and being laser-focused looks in action:

LASER-FOCUSED

We try to advise our clients against doing things on a whim. Think about that for a minute. We live in a marketing world where quite literally there is (at least there should be) data to support every marketing choice you make as a business. When you’re making decisions on behalf of your business that are supported by data, you can really get laser-focused on how you spend your marketing time, as well as your budget.

We recognized one of our e-commerce clients were already generating a ton of web traffic, but their online conversion rate in comparison was extremely low – less than .25%. Yes, you read that right.

Knowing this, we put a strategy in place that focused solely on increasing the purchase conversion rate. The traffic was already there. Every tactic we used focused directly on the conversion rate. If something was determined to be important, but didn’t directly impact the conversion rate, it was put on the back burner.

Sure enough, this laser-focused approach increased the e-commerce conversion rate by a ½ percent.

Doesn’t sound like much does it?

Get this: That (seemingly miniscule) ½ percent increase in conversion rate increased their revenue by $56,097, rounding out the month at just under $100,000.

Going forward, we know if we can get their conversion rate to 1%, assuming the average cost-per-ticket stays consistent, they will be reeling in $517,385 / month. That’s over $6 million per year, and business growth of 78% – all because we focused on that ONE metric.

ELIMINATE THE GUESSWORK

When you’re laser-focused on data, it doesn’t leave much room for guesswork when it comes to the dollars you invest in your business. You need to be crystal clear where your marketing budget is being spent. Furthermore, data shows you exactly how that budget is performing for your business.

This is exactly what we did for one of our brick-and-mortar retail clients. We know when website traffic increases, so does store traffic. Understanding this correlation, we put together a holiday-themed campaign to drive website traffic.

The strategy included Google Display Ads, Re-marketing Ads, and various Facebook tactics. Our client also wanted to try out display ads on the local newspaper website.

Here’s what the data showed us:

Over a two-week period, the Google display ads, re-marketing, and various Facebook ads generated 1,416 website visits for $817, or $0.58 per click. The ads on the local news website generated 196 web visitors for $2,500, or $12.76 per click.

Knowing this, our client could have potentially seen a total of 5,719 website visits ($3,317/.58 cents) versus 1,612, if they’d invested every dollar into the strategy we prepared. This would have more than tripled the outcome for their money.

Still, we find that most businesses don’t track to this level and therefore can never really understand how to get the most value for their money.

THE TAKE-AWAY

Get with it, or get lost

Data-driven results are a key component within every strategy. And it doesn’t matter what you’re strategizing toward. Whatever your respective business goals may be, whether it be more sales, employee retention, recruiting, appealing to a wider audience, consistently practicing data-driven decisioning is what helps businesses analyze successes and failures. Your analysis is what allows you to micromanage your strategy and make the adjustments and enhancements needed to reach your goals.

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