How external demographics data can help your business succeed.
Christian Drachmann is a seasoned e-commerce BI-consultant with over ten years of experience in driving successful online businesses forward. In an interview conducted on December 21st, 2022, he discussed the relevance of using external demographic data to help businesses succeed.
One of the first things he mentioned was the importance of analyzing data that effects sales in relation to sales. For example, the weather data in relation to sales. He emphasized the need to look for correlations between temperature and sales figures, and how such data can be used to predict consumer behavior. For instance, businesses can make informed decisions by looking at past sales data and the average temperature per day. If it’s going to be cloudy for the next three days, a business can take away certain products that may not sell well and promote other items that are more likely to sell.
Drachmann also talked about how body KPI data, such as the average BMI per age group per country, can be used to optimize product offerings. For instance, if a business is designing a collection of underwear, they can use the average BMI data to determine the size and type of underwear that is most likely to sell in a particular country. By mapping the whole of Europe and sending the average BMI for women, for instance, a business can avoid sending the wrong sizes to customers, which would ultimately lead to fewer sales. Another significant aspect is the amount of returns that never gets sold, leading to products getting shipped between shops, minimizing the profits and increasing pollution.
Another area that Drachmann discussed was the importance of analyzing customer reviews and recommendations online. Instead of spending money on marketing campaigns, businesses can access the wealth of data available through consumer reviews and use it to make informed decisions about their products and services. By leveraging tools like Qlik, businesses can save money and make data-driven decisions.
In conclusion, external demographic data can provide businesses with valuable insights into consumer behavior and help them make informed decisions. Whether it’s analyzing weather data, body KPIs, or customer reviews, businesses that take advantage of external data are more likely to succeed in today’s competitive marketplace.
