Small business owners are constantly working with data to help improve their sales and generate more success. But if the data is not interpreted correctly, it can slow down the success of the business.

By understanding the data related to your customers and their buying habits, your company as a whole is able to make smarter decisions to help improve your online conversion rates and, ultimately, your bottomline as a business. By understanding analytics user engagement data, small businesses can also increase their revenue and become more profitable.

What is Data Analytics?

Data analytics is a process of examining data sets to draw conclusions about different consumer behaviors. Various technologies and techniques can be used to help organizations and businesses make more-informed decisions when it comes to their business.

By understanding data analytics, businesses can increase their revenue, improve efficiency, respond more quickly to market trends in order to gain a competitive advantage over their rivals, and overall increase business performance. According to Kyros Insights, one way businesses can increase their performance is by utilizing predictive analytics to increase customer loyalty and generate more sales. (More about predictive analytics below).

Getting Started With Small Business Data Analytics

For small businesses, it is essential to understand the data that is being collected online. If they are unable to interpret and analyze how their company is performing, companies will rarely achieve their business objectives. By using web analytics services, organizational leaders can really make sense of their data which is why businesses need to start taking data analytics seriously.  

Data analytics refers to the process of getting useful information from the raw data that is collected by tools like Mixpanel, Amplitude, Tableau or even Google Analytics. The data that is gathered can then be transformed and analyzed by analytics managers.

This data helps businesses discover patterns in customer behavior, website drop points, why certain pages have high bounce rates and more. Data analytics looks at smaller sets of data, for example, “Here are 1,000 online purchases from our online store out of the last 50,000 visits. What information can we learn from this data set?” By analyzing questions like this, businesses can become more efficient and profitable.

So how exactly can small businesses use data analytics?

To start using data analytics, find a software that can automate the process. These softwares can automatically collect data from your website to provide insight about how your business is doing. They can help you make decisions regarding your business and its next steps. They can also help you to increase your conversion rates so that you can get more buying customers with whatever product or service you are selling.

Converting Online Customers Into Paying Customers

Conversion rates refer to the percentage of users that are likely to take a desired action. For example, if you are selling an online course, how many customers are actually going to buy your course out of the users who have seen your landing page? By using data analytics, you can increase your conversion rates and generate more sales.

Below are 3 ways that you can use data analytics to convert online customers:

  1. Use Web Analytics Services: By using web analytics services, such as Google Analytics, you can understand your customer and their behaviors. Starting with Google Analytics is an easy process. It can be easily set-up and can be used to help companies see and utilize data about their website visits.
  2. Increase Conversion Rates by Identifying Big Spenders: By using data analytics, you can discover who the big spenders are who is likely to buy your products or services. By offering these users interesting promotions and targeting them through advertisements, your business is more likely to increase its conversion rates. Data analytics allows you to focus on who your loyal customers are and which ones are likely to keep re-purchasing your products or services.
  3. Using Predictive Analytics: As mentioned above, predictive analytics can help increase customer loyalty and generate more sales. So what exactly is predictive analytics? Predictive analytics involves the use of data and machine learning to determine how your website will perform in the near-future based on the previously generate data points. Predictive analytics can increase your company’s loyalty program by helping you to understand your customer data and by giving you insights on new ways to help with conversion rates. Predictive analytics helps you increase your loyalty programs by having personalized rewards, predicting the customer value, and targeting recommendations.

By using technologies that are available today, small businesses can increase their profits by converting online customers and increase their sales. With the help of web analytic services and predictive analytics, companies are able to leverage this data to grow their business and increase their online revenue.