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IntroductionDo you know what data aggregation is and how it can be used in today’s business world? Will you be able to get useful information from large volumes of information, or does it still seem a bit too complex? Well, you are not alone – just keep reading, and we’ll explain what is data aggregation and how you can benefit from it.
Data Aggregation and How It is UsedData aggregation is the process of collecting raw info from various sources, then combining and presenting it in an understandable format for further analysis. The collected information and its analysis may provide you with a complete overview of the current state of your business and guide you through optimizing your company’s business and marketing strategies for better revenue. For marketing purposes, data aggregation results from marketing campaigns. If you would like to compare the success of your marketing campaigns, you have to aggregate the information from each campaign separately and then make a comparison of their performance based on channels, target audience, budget, or other related criteria. Besides, thanks to collected information, you can have clear statistics about your customers’ behavior, interests, or demographic that can help you form personalized messages and offers. For financial purposes, you need to analyze the figures taken from financial reports and analytics, news, events, or pricing operations; this helps allocate the budget more consciously and overall affects the company’s financial position. In the retail industry, compiling information is used for competitive research, including competitive price monitoring, product promotions, and offerings. Competitive research is the most essential measure for success in retail. This information can be gathered from competitors’ websites, social networks, or review sites. In almost every industry, data aggregation is an efficient method to evaluate business growth. At the same time, the full process of collecting the required content is time-consuming—and without special platforms that automate the process, it can be very complex.
Why Data Aggregation is ImportantIn most cases, data aggregation and modeling may affect your business objectives. Based on analysis and insights from gathered content, you can make a comparison of marketing or investment channels and get a clear vision of where to spend your budget. By collecting all the figures, you can determine the source of traffic and the subsequent customer steps, which will help you evaluate marketing activity. Let’s consider the following example. You’re running LinkedIn and Google AdWords advertising. For both campaigns, you are paying $5 per lead, but AdWords is generating 100 leads and LinkedIn is generating 50. We can state that Google Ads seems a better channel, as it is generating more leads. On the other hand, if we aggregate the records, we find out that 3 leads from 10 LinkedIn leads turn into a conversion, but Google AdWords makes 1 lead from 10 leads. Thus, thanks to it, we see that LinkedIn is a more profitable channel than Google AdWords, even if it is generating fewer leads. Data aggregation is often used in practical areas like risk management, business strategy decisions, measuring KPIs, evaluating marketing campaigns, product development, and budget allocation. There are two principal methods of gaining a financial benefit from data:
- To collect and analyze content for product development purposes, thus increasing sales.
- To use the gathered information to identify issues and obstacles and resolve them to improve business profitability.