Purchasing data is essential to running a successful business. If you want to be able to thrive in today’s economy, you need to always be thinking of ways to get a head of the curve. One of the best ways to get ahead of the curve in business is to be able to expand your reach. You need to be able to get in front of as many targeted audience members as you can in order to even the odds for getting the most optimal lead results from your marketing campaigns. The reach you have when sharing your message is just as important as your message and the versatility of channels by which you reach them will impact your bottom line.
Getting ahead of the curve also means expanding the scope of your marketing analysis – enriching it and finding new strategies to optimize it. The best way to globally accomplish all these things requires one very important component – good purchased data. An effective utilization of good, accurate, current data from a reliable source is mission critical to implementing how you incorporate data into your marketing universe. The thing is, there are a multitude of ways businesses, both large and small, can implement the use of purchased data. Some may seem familiar, and some maybe not so much so. This article will focus on the wide array of uses that you can apply your purchased data to in order to help your business improve and thrive. Let’s see how purchased data can help you and your company grow.
As you know, the most common use for purchased data is the data marketing list. This includes business marketing lists, direct mail lists, and email lists. You find a data provider, let them know what you need (using something called selects – which includes things like demographics and interests), you make sure to share what your goals and objectives are, and you then end up with a data marketing list, email list, or direct mail list that has been customized to your exacts needs and purpose. These lists are then used for your direct mail campaigns, email blasts, or perhaps telemarketing campaigns. These use cases are powerful and are utilized and executed often, in fact, it’s most likely, a use case you can probably identify with. In fact, you’ll probably agree, that these use cases are a necessity, need to be done regularly, and gets the job done. But these aren’t the only jobs that can get done with purchased data.
You may be surprised by some of the uses that are possible for purchased data. As stated, we are going to see and look at the various use cases that exist for purchased data. Again, at the end of the day, each example you read is intended to help you in how you consider purchased data and what it can do for your business. So, to begin with, here are the first 5 use cases. They may seem familiar, or maybe they won’t – maybe they’ll give you food for thought and provide some inspiration.
5 Powerful Use Cases for Purchased Data
One – Creating a Persona
A persona in business is a fictional representation of a specific type of customer or user that a company is trying to reach. It is created based on data and research about the target audience, including demographics, behavior patterns, motivations, and pain points. Creating personas with purchased data allows businesses to gain a deeper understanding of their customers, improve their targeting and personalization efforts, inform product development, and ultimately drive success through improved customer engagement and loyalty.
Here’s a thorough breakdown for you:
- Better Understanding of Your Customers: By purchasing data and creating personas, businesses can gain a better understanding of their target audience, including their demographics, preferences, behaviors, and pain points. This information can be used to tailor marketing messages and improve the customer experience.
- Improve Targeting: Personas can be used to segment the customer base and target specific groups with tailored messaging. This helps to ensure that the right message is being delivered to the right people at the right time, which can improve the effectiveness of marketing campaigns and increase conversions.
- Increase Personalization: By understanding the needs, preferences, and behaviors of their customers, businesses can personalize their interactions with them. This can include customizing email and direct mail campaigns, as well as providing a more personalized shopping experience on their website.
- Create Better Product Development: Data and personas can be used to inform product development decisions. For example, businesses can use customer data to identify unmet needs and develop new products to meet those needs.
- Improve Customer Retention: By understanding their customers and tailoring their interactions to meet their needs, businesses can improve customer satisfaction and loyalty. This can result in increased customer retention and repeat business.
Two – Prospect Modeling
Prospect modeling in business is the process of analyzing and segmenting a company’s target audience to identify potential customers who are most likely to purchase their products or services. The goal of prospect modeling is to improve the efficiency and effectiveness of marketing and sales efforts by focusing on the customers who are most likely to be interested in what a business has to offer. By utilizing purchased data with prospect modeling, businesses can improve their marketing efforts, generate leads, segment their audience, gain insights into customer behavior, and ultimately drive success through improved customer acquisition and conversion rates.
Here’s a thorough breakdown for you:
- More Highly Targeted Marketing: Purchased data and prospect modeling can be used to identify and target potential customers who are most likely to be interested in the business’s products or services. This can improve the efficiency and effectiveness of marketing campaigns and increase the return on investment.
- Improved Lead Generation: By using prospect modeling to identify potential customers, businesses can generate a targeted list of leads for their sales team to follow up with. This can help to streamline the sales process and increase the number of conversions.
- Better Segmentation: Purchased data can be used to segment potential customers based on a variety of criteria such as demographic information, behaviors, and interests. This allows businesses to tailor their marketing messages to each specific segment and improve the chances of success.
- Increased Customer Insights: Prospect modeling can be used to analyze the behavior of potential customers and gain insights into what drives their decision-making. This information can be used to inform future marketing and product development efforts.
- Improved Customer Acquisition: By using purchased data and prospect modeling to identify and target the right customers, businesses can increase the efficiency and effectiveness of their customer acquisition efforts. This can result in a lower cost per acquisition and a higher rate of customer acquisition.
Three – Projective Analysis
Projective analysis is a research technique used to gain insights into consumers’ thoughts, opinions, and behaviors. The goal of projective analysis is to gain a deeper understanding of the unconscious motivations, attitudes, and emotions that drive consumer behavior. Incorporating purchased data with projective analysis, businesses can gain a deeper understanding of their customers, inform market research and product development efforts, increase customer engagement, and ultimately drive success through improved customer satisfaction and loyalty.
Here’s a thorough breakdown for you:
- Conducting Market Research: Projective analysis can be used to gather insights into customers’ thoughts, opinions, and behaviors. This information can be gathered through purchased data, surveys, focus groups, and other methods, and can be used to inform market research efforts.
- Improving Customer Understanding: By using purchased data and projective analysis, businesses can gain a deeper understanding of their customers, including their needs, motivations, and decision-making processes. This information can be used to inform marketing and product development efforts.
- Better Product Development: Projective analysis can be used to gather insights into what customers want and need from a product. This information can be used to inform product development decisions and ensure that the final product meets the needs of the target audience.
- Increased Customer Engagement: Projective analysis can be used to understand what customers value and what drives their engagement with a brand. This information can be used to inform customer engagement efforts, such as loyalty programs and targeted messaging.
- Improved Customer Experience: By using purchased data and projective analysis to understand customer needs and preferences, businesses can improve the customer experience and increase customer satisfaction. This can result in increased customer retention and repeat business.
Four – Data Appending
Data appending in business is the process of adding missing or fixing incomplete information to a company’s existing customer database. The goal of data appending is to enhance the quality and accuracy of a company’s customer data, making it more useful and valuable for marketing, sales, and other business efforts. The only way to append data by the use of purchased data. This data purchase will improve the quality of pre-existing customer data, help a company gain a deeper understanding of their target audience with the added knowledgebase just created, and will improve their marketing and sales efforts, leading to increased customer engagement and loyalty.
Here is a more thorough breakdown:
- Improve Data Quality: Data appending involves adding missing or fixing incomplete data to a business’s existing customer database. By incorporating purchased data, businesses can improve the quality of their data, making it more accurate and up-to-date, which can lead to more effective marketing and sales efforts.
- Enhance Customer Understanding: By appending data to their customer database, businesses can gain a more complete understanding of their customers, including their demographics, behaviors, and preferences. This information can be used to inform marketing and product development efforts and improve customer engagement.
- Better Targeted Marketing: With more complete and accurate data, businesses can segment their target audience more effectively, allowing them to tailor their marketing messages and promotions to specific customer segments. This can result in more effective and efficient marketing campaigns, leading to increased customer engagement and conversions.
- Improve Lead Generation: Data appending can help businesses identify potential customers and generate new leads. By incorporating purchased data, businesses can expand their reach and target new segments, increasing their chances of generating new business.
- Increase Customer Retention: By having more complete and accurate data, businesses can improve their ability to communicate with and engage their customers, which can lead to increased customer satisfaction and loyalty, resulting in improved customer retention.
Five – Creating Marketing Plans
A marketing plan is a document that outlines the strategies, tactics, and activities that a business will use to reach its target audience and achieve its marketing and sales goals. It typically includes information on market research, target audience analysis, brand positioning, product positioning, pricing strategy, distribution strategy, communication strategy, and budget. Incorporating purchased data into a marketing plan can help businesses improve their understanding of their target audience, thus allowing them to target their marketing efforts more effectively and allocate resources more efficiently, ultimately leading to increased success and growth.
Here is a more thorough breakdown:
- Improve Customer Understanding: By incorporating purchased data into their marketing plan, businesses can gain a deeper understanding of their target audience, including their demographics, behaviors, and preferences. This information can be used to inform marketing strategies and improve customer engagement.
- Better Targeted Marketing: With more complete and accurate customer data, businesses can segment their target audience more effectively and tailor their marketing messages and promotions to specific customer segments. This can lead to more effective and efficient marketing campaigns, resulting in increased customer engagement and conversions.
- Increase Lead Generation: By incorporating purchased data into their marketing plan, businesses can identify potential customers and generate new leads. By targeting new customer segments, businesses can expand their reach and increase their chances of generating new business.
- Improve Customer Retention: A well-designed marketing plan can help businesses improve their ability to communicate with and engage their customers, leading to increased customer satisfaction and loyalty. This can result in improved customer retention and long-term business success.
- Better Resource Allocation: By creating a comprehensive marketing plan, businesses can prioritize their marketing efforts and allocate resources more effectively, ensuring that they are focused on the most impactful initiatives and achieving the best possible results.
There may have seemed like there was some repetition in the thorough breakdowns, but really, it is logical for there to be overlap in how purchased data benefits each use case. The reason for this, is that ultimately, each strategy is all about better understanding your audience, and then understanding your business and its position in the industry you are in. The more effectively you can target new customers and keep them is truly the whole purpose behind all these different use cases for buying purchased data.
Now that you’ve been exposed to those top 5 use cases, plus the original use case of the data marketing list, what if I told you there are 5 more uses cases? Lets check them out together. These next 5 use cases are not meant to cover every use case possible for purchased data. Just some additional popular utilizations that may be helpful for you to be exposed to. Truly, these examples are meant to help broaden your purchased data thinking and perhaps give you some ideas that you can use to help improve your business strategies in the future. Each use case will have its title and an example. These are much more brief in scope to read and review.
5 More Powerful Use Cases For Purchased Data
To review, purchasing data for business is all about making better decisions and engaging in campaigns that are driven by the good data you’ve acquired and by being able to make better data-driven decisions. Data is used to identify patterns and trends, help you make strategic decisions, and improve the overall performance of your marketing initiatives. So, here are the 5 other use cases as promised:
One – Improving Product Development and Innovation
- Ex. A manufacturing company purchases data on customer needs and preferences. They use this data to improve product development and innovation, which leads to a 30% increase in sales.
Two – Improving Customer Retention
- Ex. A subscription-based company purchases data on the behavior and preferences of its customers. They use this data to create personalized experiences and improve customer retention by 20%.
Three – Identifying Industry Trends and Competitor Analysis
- Ex. A software company purchases data on industry trends and competitor analysis. They use this data to identify the trends and strategies of their competitors and then make strategic decisions to stay ahead in the market. Thereby increase their revenue by 18% for their first quarter after executing their strategy.
Four – Optimizing Marketing Efforts and ROI
- Ex. A food delivery company purchases data on the location, purchasing habits, and behavior of its customers. They use this data to identify patterns and trends and optimize their marketing efforts by targeting specific demographics and areas, which leads to an increase in ROI by 20%.
Five – Price Optimization
- Ex. A shoe company builds a price optimization model based on purchased data that takes into account competitor analysis (competitor behavior), customer behavior analysis, and seasonal trends. This allows them to optimize their price, thus creating a revenue increase in the tens’ of thousands of dollars.
Ultimately, purchasing good data is an essential aspect of running a successful business. It is a crucial component of effective marketing and business operations as well as provides numerous valuable insights that can be used to improve marketing efforts, increase revenue, and make better strategic decisions. In today’s data-driven economy, businesses that have access to accurate, high-quality, and up-to-date information on customers, markets, and trends have a distinct advantage over those that do not.