Data-driven marketing is the process by which marketers use data to gain insights into customer needs, desires, and behaviors, then use these insights to create personalized marketing strategies aimed at the highest possible return on investment (ROI). Made possible by the introduction of customer relationship management software (CRM), data-driven marketing allows marketers to enhance and personalize the customer experience by taking the answers to questions like whom, when, where, what and translating them into practical marketing strategies.
Benefits of Data-Driven Marketing
Data-driven marketing is gaining popularity as both businesses and consumers benefit from the approach. Benefits include:
- Efficient Media Buying: Analyzing data collected enables marketers to remove guesswork thus improving media planning and buying. This type of marketing facilitates the identification of the content that leads prospects through your sales funnel allowing you to decide where your time and budget are best spent.
- Consumer Targeting: Data analysis results in a deeper understanding of the customer profile allowing marketing messages to be customized and shown to the appropriate audience.
- Relevant Messages: For most companies, generic marketing messages are over. Data-driven marketing enables you to be relevant, for your message to resonate with consumers’ interests.
- Multi-channel Marketing: Marketers can reach beyond email, extending their reach across multiple networks and ensuring that the message is consistently reaching each customer at the perfect place and time. Data helps you discover which channels are best to engage your audience now and in the future.
- Improved Customer Experience: The data collected brings an understanding of customers’ triggers and pain points, allowing marketers to determine specific areas for improvement of the customer experience.
- Improved Product Development: With more data leading to a better understanding of your target audience, your business can reduce product failure rates by focusing product development on goods/services best suited for a particular market.
- Prediction of Consumer Preferences: With the right data, you can pre-target consumers tailoring your marketing message while the customer is still in buying mode, delivering a one-to-one customer experience on a massive scale.
How to Begin Data-Driven Marketing
There are some basic principles that can help you start a data marketing strategy or improve your existing data marketing program.
- Determine Your Goals: Decide what data is worth collecting. Focus on gathering information around key performance indicators (KPIs). Consider collecting information regarding your target market, customer and prospect data (persona, transactional data, online activity, social network activity) and marketing/social media analytics (click-throughs, impressions, conversions).
- Adopt Automation: Use an automated process that allows for personalization and lets your marketing strategy function for you even when you’re not working.
- Collaborate: Utilize processes that manage data ensuring that it is shared across your entire organization, reaching all departments and teams.
- Evaluate and Take Action: Using your KPIs, evaluate the data collected. Use this data to inform your market strategies.
- Consistently Monitor your data collection to identify which strategies are giving you the best results. Continue to draw conclusions and try new strategies to maximize the results of your marketing efforts.
- Explore Marketing Channels: Use data analysis to help you understand which channels are working for you and inform you of new channels and formats worth adopting.
- Observe the Competition: Let your competitor’s successes and failures inform your marketing strategy. Learn from their mistakes. Adapt and implement what works.
Data drives most marketing decisions in today’s competitive marketplace. Take the time to collect and analyze data and adjust your marketing efforts accordingly. Let data help you make better decisions regarding the timing of your advertising, customization of marketing copy and personalization of experiences for your target audience. Data-driven solutions are essential to successful marketing campaigns.
Need help with your data-driven marketing strategy? Call CAYK at (403) 456-0072 or request a marketing proposal. Allow us to be your very own marketing department! Connect with our tightly-knit team of knowledgeable digital-first consultants, each eager to help your business grow.