What is Transactional Data?
Transactional data is the information collected from transactions and can be categorized as financial, operational, digital, or logistical. Transactional data encompasses a variety of events ranging from customer purchases to inventory management.
With so many different functions, translating the big data that transactional data provides is an important data management task. Included in transactional records, transactional data is generally considered alongside master data and reference data.
A unique feature of transactional data is that time and reference data are automatically included in its recording. These records and their specificness offer extensive, invaluable information to businesses.
Time-based transactional data is a great tool for sales forecasting, potentially boosting the effectiveness of your sales team. The customer segmentation process is simplified with data mining techniques that categorize specific customer groups. Marketing is not only supplied the data to personalize offers and promotions but also provided real time feedback about the success of campaigns.
However, the data transactional data offers is largely unstructured, lacking a predetermined format or model. Previously, this lack of structure created issues for translating big data into useful business intelligence information and required businesses to spend a vast amount of labor and money.
With the advent of online powerhouse companies including Google and Netflix, everything about big data changed. Algorithms were developed to sort through big data and reveal valuable information that could be utilized to increase business profitability.
How to Drive Growth with Transactional Data
Businesses have found that transactional data offers insight into real time business operations and extensive business intelligence benefits. Benefits offered by transactional data analysis include-
- Increased traffic- 38% of restaurant and retail marketers report that their top challenge is customer acquisition and retention enhancements. Transactional data can not only pinpoint in real time when a new guest is at your location but can also pair the information gathered during their visit with other technological functions such as personal contact data.
The pairing of transactional data with contact data allows your staff to more aggressively follow up with guests and increase the likelihood of them returning to your business.
- Targetted discounts- Instead of launching promotions and discounts at all of your customers universally, transactional data targets specific customers. For example, Starbucks will send inactive guests more offers and gifts to motivate them to return to the store.
Panera Bread customizes their rewards based on customer data from previous transactions. This business intelligence not only personalizes marketing initiatives but reduces profits lost on unnecessary customer incentives.
- Improves marketing- Beyond personalized marketing initiatives, the valuable data transactional data offers your marketing department is unparalleled. Local advertising including billboards or television ads is largely untrackable, making it difficult to understand what specifically brought customers into your business.
Transactional data adds a layer of accountability to your overall marketing process, especially when linked with email campaigns and social media platforms. Your marketing department can learn how to best target specific customers and consistently improve their campaigns based on previous results.
With real time data, your marketing department can stay one step ahead of the competition. Additionally, the success of new product launches and marketing initiatives can be almost instantly evaluated.
Even with all the clear benefits that transactional data offers, the majority of restaurants do not integrate it into their business strategy. Thankfully, as data management becomes more centralized to business intelligence processes and marketing initiatives, companies are quickly realizing the untapped value of their transactional data.
- Transactional data is the information reported from transactions, categorized as financial, operational, logistical, or data. This data type contains a wealth of big data that, when properly utilized, can have immense business intelligence benefits.
- The time and reference data included in these transactions can be used for a variety of different purposes, ranging from marketing initiatives to customer acquisition and retention efforts.
- The data transactional data offers is not structured but with the advent of companies like Google and Netflix, algorithms were developed for data management purposes. Previously, big data would require massive resources to sort through, including time and labor that many companies did not have available.
- The top challenge reported by 38% of restaurant and retail marketers is customer acquisition and retention improvements. This statistic is unsurprising considering that the majority of revenue is generated by a returning customer base.
- Transactional data can be paired with contact data ranging from social media platforms to email campaigns in order to outreach more effectively.
- Targetted discounts save businesses money that would have otherwise been wasted on providing incentives to customers who would return and buy items full price regardless. While Starbucks targets inactive guests, Panera Bread customizes their rewards based on previous purchases.
- Marketing departments are provided with real time feedback on their campaigns and can consistently improve marketing initiatives.
- Although the majority of restaurants do not currently utilize their transactional data, developing technology is making data management much less time and labor-consuming which could entice more restaurants to partake.