The Web has opened a whole new universe of possibilities for boosting sales. Here’s how some of the best in the business are cashing in.

For decades, companies have used sales and marketing data to boost revenues. But new waves of online data are allowing companies to see buying patterns they weren’t able to before.

Result: Online buyer data has emerged as one of the most valuable marketing resources a company can have.

Consider these strategies companies are implementing to transform buyer data into a major boost in profits:

• Using past buying history to cross-sell and upsell ancillary products and services to existing customers (70% of Amazon’s revenue last year was the result of “product suggestions” compiled from customers’ past buying history).
• Utilizing demographic info buyers provide when they register on the Web site (e.g., job title, industry, region, age, etc.) to identify common buying patterns — and opportunities for new products or services.
• Leverage geographic data to determine where the biggest clusters of buyers are located, so salespeople can canvas that area — or the company can target that area for a branch office or local store.
• Tracking point-of-purchase receipts to determine what time of year customers are most likely to buy (and why). Then capitalizing by scheduling major promotions during those weeks or months.
• Tracking the pages online shoppers visit on a company’s Web site. Companies use this info as a selling tool. Example: Once a registered buyer visits a specific product page, that info can be forwarded to a sales rep who will follow up with the buyer personally to see if the buyer has any questions about the product or service.
• Creating social networks on the company’s Web site so that buyers can communicate with one another, share feedback on products and suggest other products. Building an online community also gives the company consistent access to unfiltered buyer feedback.
• Generating instant results from online price testing, as opposed to having to set up a test and a control, and monitor weeks or even months of results before making a decision.

What are some online strategies that work for your company? Share them in the Comments Box below.

Source: “A Data Explosion Remakes Retailing,” by Steve Lohr

Tags: buying history, consumers, customers, data, retail, sales, Web marketing