Most dealers and resellers are awash with valuable data that could make a significant difference to their bottom line, if used correctly, says Kevin Falconer, GM of local storage and networking distributor, Channel Data.
He notes that customer lists, sales data, market research, and even complaints can help boost business and manage customer relationships more effectively.
According to Falconer, sophisticated data mining software is able to summarise and categorise information, while finding patterns among hundreds of fields in large relational databases.
For example, the analysis of point-of-sale transaction data can yield important information on which products are selling the fastest, and when the most sales are logged, he explains.
“The knowledge gained, if used effectively, is capable of putting the humblest 'mom-and-pop' store ahead of the big warehouse chains when it comes to customer service and retention,” says Falconer.
He adds that new developments in computer processing power and disc storage solutions are reducing the costs associated with these systems, and sharpening the accuracy of data analysis.
In many businesses, thePareto principle - the 80/20 rule - applies, states Falconer. This often prompts sales staff to emphasise service to the majority of customers (the 80%) who, while making the most demands, generate the least profit. Meanwhile, they neglect the needs of the small percentage of customers (the 20%), who are the most profitable.
It is therefore vitally important to recognise profitable customers, and the characteristics that define them, Falconer argues. For example, changes in their purchasing behaviour can either present an opportunity to follow the trend, or a threat the company will promptly have to address.
Falconer predicts businesses employing these strategies will be able to counter rivals' marketing activities with effective, targeted campaigns of their own. Accurate, up-to-date customer information will give sales staff many cross-sell, up-sell, and repeat-sales opportunities, he concludes.
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