Data is changing the businesses operate and do business today. Most companies are collecting vast amounts of data but fall short of having a comprehensive strategy to guide them in making the right business decisions. When software as a service comes in, companies get an overwhelming amount of data, and this means creating and implementing a strategy is very important.
Today, companies can analyze customer habits using third part data, predictive analytics and machine learning. This type of data has the potential to change marketing actions and initiatives, and improve on the overall customer success outcomes. All these capabilities make SaaS companies to be very competitive, and give them a lot of insights across different departments. If you have some doubts about the performance of your employees or marketing campaigns, the best way to go about it is to use data to guide you in making better decisions.
Creating a data strategy
To create a data strategy for any SaaS company, the first step is to ask your team questions, and lots of questions for that matter. Questions that you ask should be driven by pure curiosity, but have a business impact. You need to get answers to the type of questions to ask, that can improve business processes. You may need to ask questions such as;
– Who is buying my product?
– What is the average customer acquisition cost?
– What is the most it could cost?
– Where are we losing customers?
– Is this feature driving engagement?
It is very important to ask a lot of meaningful questions that can help you draw good conclusions for your business. After you have created a list of questions you would like to answer, the next step is to figure out the kind of data you need to be able to answer those questions.
If you would like to know who will be buying your products, you will need to collect demographic data using tools such as Google Analytics.
To know your average customer acquisition cost, collect data on conversion rates and marketing expenses, as well as internal fixed costs.
To know the most your product or service should cost, you may need to collect more data than online tools can provide. You may also want to track and analyze support calls and refunds.
If you want to know where you are losing people in your sales funnel, you may need to ask yourself a couple of questions. Do you lose people before they sign up for a trial? Or do they complete their trial period and then abandon your platform? You can get this data from both website and application tracking tools.
If you have a feature and would like to know if its driving engagement or not, you may need to consider which users are using the feature. You can collect this type of data with the use of Google Tag Manager as well as other tools.
The next vital step is to hypothesize your data and create benchmarks. As you gather your date, you will be in a better position to understand real situations and also remove any bias from your products.