We talk a lot about data’s role in growing revenue by targeting business’ marketing efforts towards their Best Prospects. At the National Etailing and Mailing Organization of America’s (NEMOA) conference this September, Kenneth Harris, Owner of KLH Associates, a boutique consulting firm specializing in the retail, e-commerce, direct response, and restaurant industries, spoke on the options open to businesses experiencing a lull in sales and poor performance. This year, Kenneth proposed three options for such companies facing such a crisis.
- Just get out of the business. Minimize your losses and sell what you can and just move on.
- Cash out, streamline existing operations, dress the business up for sale and then sell high – a tempting proposition.
- Weather the storm and turn the tide in your favor by growing, which means you need to invest more in your business to turn it around.
Regardless of which option you choose, Kenneth recommends diving into your data to find the right solution. For businesses today, it is critical to rapidly accelerate the conversion to digital, not just optically for potential buyers but for improved revenue and ROI. The Modern Consumer provides a great deal of data on who they are, what they want, and how they choose to receive it. It doesn’t take very much for you to use this information to your advantage to grow your customer base and increase your revenue.
To illustrate, if you intend to grow your business when financially struggling, you need an understanding of who your existing customers are by analyzing your own data – something you already own. If you can pinpoint who your existing best customers are by reviewing your data and asking questions like how they interact with you, and how they consume addressable media, you have just created a path towards growing your customer base all thanks to data. But, not every business has the luxury of doing this analysis in-house.
Kenneth recommends finding outside expertise in the realm of data to help – regardless of which option you choose – to effectively utilize your first-party data to find the best opportunities to grow. When bringing in experts from outside your business, you bring in a fresh point of view and alleviate the pain of organizational baggage that often accompanies people too close to the business.
It’s these outside specialists who bring in expertise not only in data analysis, but also much needed expertise on targeting your Best Prospects via the addressable media they utilize the most and have the highest probability to respond to. The insights from advanced reporting and incremental revenue growth will soon speak for themselves.
It is good news for organizations that technology has enabled experts like Target Data to quickly run, analyze, and deliver meaningful insights without huge additional costs or months long ramp up times. Often businesses choose to build out their own capability in analyzing their own data and creating platforms in-house. This all too often results in more money spent and too much time needed to effectively achieve the desired result – increasing sales and growing your customer base.
One of the underlying takeaways from NEMOA was to have a sense of urgency. Moving quickly is essential to turning around any struggling business, and as Kenneth tells us, maximizing a business’s own data is a quick and efficient way to change things for the better.