"Knowledge is power! "And in the age of Big Data, organizations have unprecedented knowledge potential. But to develop their power (or rather, their performance), they need to learn how to effectively track the data at their disposal. This is what we call data tracking.
What is data tracking?
Data tracking is the process by which a company identifies the data that will help it make the best decisions. This may be numerical data or events to be tracked.
Once the most relevant data has been identified, the company collects and analyzes these various metrics. In so doing, it is able to identify trends, better understand customer behavior, improve the customer experience, optimize email campaigns… In short, make better data-driven strategic decisions.
Why is this important?
In the 21st century, data is as precious as oil. But to add value with the information available, you have to use it wisely. And that’s exactly what data tracking is all about. Here are the main benefits.
Understanding your target
Data tracking makes it possible to gather a wealth of information about your target. For example:
- Identify the profile of your ideal customer: male or female? Students, working people or retirees? Single people, married couples, parents? Executives or people on modest incomes? etc.
- Understand buying behavior: how long does it take them to buy? Do they buy products and/or services regularly? What is the average income per customer? etc.
- Analyze navigation (on the organization’s website or social networks): Is there a lot of interaction? What days do customers log on? What time of day? etc.
All this customer data enables the organization to adapt its communications to meet the needs of its target audience as closely as possible.
Improve the effectiveness of your advertising campaigns
A better understanding of the target audience helps optimize the effectiveness of advertising marketing campaigns (on Google, LinkedIn or Facebook Ads, for example).
This is because it is possible to limit the distribution of messages to prospects with the same characteristics as the ideal customer (through lookalike audiences). By doing so, the company multiplies its chances of converting, since targeted prospects will, a priori, be more interested in your offer.
What’s more, data tracking also makes it possible to create personalized ads for each consumer.
Segment your audience
While it’s possible to draw up an “ideal customer” profile using data tracking, it’s clear that a company’s customer/prospect portfolio is made up of a multitude of unique individuals with their own characteristics. It is therefore not possible to address everyone in the same way.
It is therefore in the company’s best interest to segment its target according to the specific characteristics of each individual (age, gender, profession, geographical location, etc.), but also according to the level of maturity within the purchasing journey. A prospect who has just discovered the brand should not be addressed in the same way as someone who has abandoned their shopping cart, or a customer who has already been convinced.
These are just a few examples of the benefits of data tracking. In fact, data tracking can also be used to improve conversion rates, personalize customer relations, identify trends, and so on.
How do you track your data?
While data tracking offers companies many advantages, it’s important to learn how to keep track of your data. Here are the essential steps:
- Identify the main elements of the data tracking plan: i.e. the data to be tracked and the data tracking tool to be used.
- Set objectives: this may involve increasing conversion rates, testing a new feature, identifying the most effective marketing channels, etc.
- Implement actions: to meet the objectives previously set. For example, change the website design, increase the frequency of publication on social networks, etc.
- Analyze data: this involves analyzing user behavior in relation to the actions implemented. Is there a change? Is it positive or negative? This analysis can then be used to make the necessary changes to improve performance.
Things to remember :
- To take full advantage of the value of data, companies need to implement a data tracking strategy. In other words, identify the key metrics needed to make the right decisions.
- By doing so, the company improves its customer knowledge, optimizes the effectiveness of its campaigns, personalizes its communications, etc.
- To implement effective data tracking, you need to identify the most relevant data, set objectives, deploy appropriate actions and analyze the results.
