The public face of marketing is very glamorous – enormous advertising budgets, sophisticated PR campaigns, celebrity endorsements, travel to exotic locations, wining and dining etc. The inside story is less alluring and more tedious – it involves data mining and management. On the face of it this does not sound like a very difficult task but which, unless done properly, can result in needless expenditure, product failure, drop in market share and loss of customer-confidence. If done correctly it could pay rich dividends.
Successful marketing companies have learnt and implemented the task of managing their data effectively so that it can be utilized optimally for enhanced company performance. Hence in order to succeed in business, it is essential to start data collection and data management early in the life of the business.
As the Company Grows
This way as the company grows, you need to pay less to obtain and organize the data in ways that are beneficial for the company. Good data management, guides and propels sales and marketing in the right direction. Marketing and sales have evolved over the years – they go beyond consumer profiling and market segmentation – nowadays it is imperative to have an in-depth understanding of customers and respond to their wants and needs immediately and flawlessly.
To achieve this, data has to be managed and assessed at all stages of the marketing process. For example, understanding who is satisfied with your product helps companies target current customers in a better and effective manner. It also helps figure out the profile and motivators for potential customers and provides cues on how to attract new customers.
Pitfalls That Could be Faced
New entrepreneurs, start-ups, new marketing companies with little or no experience could end up doing badly if they are not aware of the pitfalls that could be faced in the intensely competitive world of today. Acquiring and using data effectively is as if not more important for them vis-à-vis older companies.
Hence if you are planning to set up in business there are a few factors you should keep a few things in mind so that you do not get bogged down with the high costs of acquiring the data:
Firstly start gathering customer and market information from the start of your business. Anticipate future requirements for data and collect accordingly. Save and protect data that cannot be used today but will come in handy later.
The Right Kind of Data
Ensure that you are collecting the right kind of data. Take the advice of an expert so that you know what questions to ask, what information to gather and how to classify and save it for future reference and use. You could also invest in marketing tools used by the bigger companies to manage your data efficiently- this will come in handy as your business grows.
Invest in data acquisition and data management now, at a lower cost, and enjoy the payback later on in terms of more effective and focused marketing, greater sales and savings in future costs. Plan and strategize early enough and you will surely reap the benefits in the future.