Welcome to Digital Homesteading.
This collection of resources from 9 Clouds helps you build your business and community.
We love data. Data holds immense potential to completely revolutionize the way we approach marketing and selling. All we have to do is unlock it.
But one of the problems with big data is it’s immensity. If you jump in head first without a strategy, you could spend hours upon hours swimming your way through miles upon miles of data — unaware of which data points will be useful to you. This completely negates the purpose of using big data, which is to increase your efficiency and boost your business.
There are a huge variety of ways and tools that will help you manage and utilize your big data. Because we are data nerds, we’ve come up with a few ways ourselves. Today we’ll share one way you can sort through your data to find the top factors that will influence sales.
Identify What Matters
We can take this algorithm that we call “weights of evidence” where we break our customers into buckets within which we create buying variables. Buying becomes our dependent variable and all the other factors that affect a purchase become the independent variables in each bucket. Our target is people who buy, so we are trying to determine an independent variable that averages out between all of the customers in each bucket.
This data comes from our work with a single-point automotive dealership but the concept can be applied to any business in any industry. Let’s start with a bank of 5,000 customers that we’ll break into ten buckets of 500.
Use Your Data
Out of these 500 people, most of them bought a car and their days since purchase was quite high. While we had access to the page view analytics, they actually didn’t matter for this bucket of customers.
Days since email sent, emails clicked and previous vehicle price had some influence but were not game changers. The data sets with three stars next to them, however, were the ones that actually mattered in the purchase decision.
When we take those four data sets that mattered and run the customers through that database, can see which of them have the highest chance of conversion.
We can (and should!) take this data straight to our sales team. Instead of sitting around the water cooler waiting for someone to drive into the lot or fill out a form, your salespeople can have a list of people who have a very good chance of converting or buying a vehicle from you.
The person listed at the top has a 96% percent chance that they are interested in buying a car right now. That’s a pretty good chance and would likely be a good use of your time. No matter what your business model is, these statistics can be immensely powerful.
Cold Calling No More
You can then extrapolate this data to a large level. If you want to talk to five people a day, those top five people are going to be really qualified leads with very high chances of conversion.
If you’d rather talk to 100, those bottom 60 or 70 people are going to be less qualified. But you might as well talk to these people who are closer to buying your product or service based on your historical data rather than calling up random people.
This practice of using our data is so valuable because we can identify who and what matters by identifying and combining these data points.
So what are you waiting for? Start crackin’ that data!