In order to make informed decisions, successful business leaders ask questions. They want to know why something is or isn’t working, whether or not they should expand and add new locations, or if they should remove a product offering. The answers to those questions can have major financial implications, so having accurate data and information is critical. Data modeling can help answer these questions, so you have all of the information you need to make the best decisions for your company.
7 Questions Data Modeling Answers:
1. Who are my customers?
Successful businesses have a thorough understanding of who their customers are, what they want, and how to reach them. When you know who your customers are, you are able to create marketing materials that resonate with them. You will also have a better understanding of how to reach your audience and which marketing channels to advertise on.
2. Which prospects should I target?
When you know what your best customers look like, you can find look-a-like prospects. There may be many people who fall into your target audience, but not all of those people will be a great fit. Data modeling can score and rank your prospect list, so you know which ones are most likely to make a purchase. Data modeling can also highlight how you should break out your tiered marketing.
3. Why is this store location not performing as well as the others?
If you have multiple locations and one or more are not performing as well as you’d like, data modeling can help you uncover what’s going on. Is there enough demand for your store? Is the store in the right location? There might be a river that’s keeping half of your target audience from reaching you. Is the area over saturated with your competitors? Is this location reaching a different target audience?
4. Where should I open a new store?
If you are looking to expand, data modeling can map out your customers and identify the best areas for you to open new locations. This process involves looking at customer saturation and identifying look-a-likes in un-targeted areas. With data modeling, you can review 10 layers of geography to see ideal locations as well as areas to avoid.
5. Who is buying our latest product?
When you launch a new product or service, data modeling can analyze which customers are your early adopters and have made a purchase. The data model can highlight shared data points and create a customer profile. This information can be used to identify others who are likely to purchase the new product, and you can target them with special promotions. If your early adopters are always the same group of people, then you can put them in your top tier marketing plan for all new product roll outs.
6. Which customers are more likely to buy this additional product?
With data modeling, you can see which product people typically buy first and which items tend to be their secondary purchases. Use this information to create a strategic plan for winning new customers and introducing them to your product line.
Understanding your customer buying patterns can aid you in the sales and promotions of other products. For example, let’s say you are trying to increase sales for product Q. Your team analyzes the data and discovers that most people who purchase Q have previously purchased products A, C, and M. Knowing that information, you can identify other customers who share that same buying pattern and target them with marketing promoting product Q.
7. Where are my customers located?
Have you ever wondered where your customers are? Data modeling can actually map out your customers, so you can see what areas have the highest concentration and what competitors they might be driving past to get to you. You can also see what type of dwelling unit they live in and which neighbors they come from.
When you understand where your customers are located, you can identify look-a-like neighborhoods and zip codes you can target to reach new customers. Data modeling can also reveal if you’re targeting areas that have had zero response. If an area isn’t responding, remove it from your marketing list and invest your marketing spend in more profitable areas.
Data modeling is all about asking important questions and analyzing data to find the answers. Whether you are trying to understand who your customers are or getting a big expansion plan in place, data modeling can help you make informed decisions.
If you have business questions you’re wrestling with, our team would love to help you find the answer.