Business intelligence in digital marketing enables an organization to make informed marketing strategies. With the help of data analytics, it becomes easier to understand and track consumers’ behavioral patterns.
Having access to real-time information allows the evaluation of marketing activities as per the prevailing market trends. The online market consists of multiple players, just like the offline markets. You may face some challenges while trying to establish your presence on the digital platform.
Using business intelligence shall help get a deeper understanding of the functionalities of a digital market, which supports more accurate decision making. Business intelligence can help tackle various types of risks and challenges that you may come across while wanting to create your own market space:
Risk of Losing the Existing Customers
In a world of cut-throat competition, customers have a huge number of options to choose from. Business intelligence aids in understanding their historical as well as present conduct. The consumers typically use social media to express their views for a particular product by liking or disliking a post, commenting, reposting, or even tagging somebody.
It becomes important to keep a close watch on the consumers’ online activities, which indicates their sensitivities towards a product. Business intelligence can help understand the reason for reduced traffic, an increase in the number of dislikes, or negative commenting.
This enables an organization to take corrective measures to meet customers’ expectations and win their loyalty. Thus with the help of business intelligence, a company can ensure customer retention.
Risk of Product Failure
Business intelligence tools can help in detecting the need for a new product. It supports new product launches in line with customer expectations and market demand. It also aids in predicting the consumer response to the launch. Further, it also enables you to determine the time and price at which the product should be introduced.
The company can offer product features and various payment models as desired by a larger set of consumers. Business intelligence thus helps in reducing the probability of failure during a product launch.
Risk of Targeting the Wrong Segment
With limited information on hand, there may be a possibility that an organization directs its marketing efforts towards the wrong segment. However, business intelligence can help in recognizing potential segments more accurately.
For instance, when a company has posted an ad for a particular consumer type, analytics may reveal that it is majorly being viewed and liked by another consumer segment.
With the help of data analysis, the organization can undertake informed promotional activities for the determined target audience.
Challenges Due to Increasing Competition
With the help of business intelligence, you can combat a certain portion of increasing competition. The comparative analysis helps in understanding the prevailing pricing, product range offered, and the current discounts and freebies by the other market players.
Business intelligence in digital marketing supports a competitive pricing model. It also helps in evaluating the need to implement other promotional measures like concessions, perks, etc.
Having an idea about how your product is positioned in the market helps in adapting policies for overcoming the challenges caused by increasing competition.
An organization posts its advertisement on various social media platforms to direct various potential consumers to its website. Making them click on your posts is usually backed with lots of analysis. It requires understanding the type of posts and their content, which generally grasps the attention of the viewer.
With the help of business intelligence, a company can generate analytical reports with details of most liked posts and views by consumers. Thus it can assist in possibly increasing the navigation from the advertisement posted to the company’s website.
Challenge to Generate Sufficient Traffic
The ability to generate sufficient traffic is crucial in digital marketing. Traffic typically indicates the number of consumers visiting your webpage. It is essential to make the consumers stay on your webpage and read the product details.
It is useful to know the total number of views and visits. Data analytics reviews the past performance and helps understand the type of content that attracted the most traffic.
Creating content keeping in view the historic performance increases the probability of generating more traffic. Therefore, business intelligence helps in identifying a more suitable content type for garnering more views and visits. This way, you can capture attention for all customer demographics and grow your brand.
Thus, by using business intelligence in digital marketing, an organization is better equipped to assess various risks and challenges that may otherwise cause barriers in expanding the consumer base.