Today’s advertising strategies are built on data-driven marketing, which is also essential to providing the customized experience that customers want. How can you take advantage of that, and what does it mean for your business? Think about the benefits it might have for your company and the ways you could use it in your marketing.
Why is marketing driven by data important?
You can get precise information on the efficiency of your marketing activities with data-driven marketing. Marketers today want data for several uses, such as client presentations and reports for corporate executives.
Here are several justifications for the significance of data-driven marketing:
- THE FUTURE OF MARKETING IS DATA-DRIVEN MARKETING
Because data-driven marketing can produce so much information on leads and future customers, it can increase a company’s revenue and return on investment. Consequently, this will boost their marketing strategy’s return on investment and volume of sales.
- YOU MAY FIND THE WHERE YOUR CUSTOMERS ARE WITH DATA-DRIVEN MARKETING
Using marketing data, you may be able to get the answers to these and other inquiries about your prospective customers. Analytics and marketing automation technologies allow you to see which website visitors come from yours. This is also applicable to social media.
- YOU CAN DISSEMINATE THE VALUE OF YOUR TEAM USING DATA-DRIVEN MARKETING
Are you ready to make a presentation to potential clients or customers? To convince the CEO to double your marketing budget, would you like to present them with the ROI your team produced last year?
Advantages of Data-Driven Marketing
Let’s look at some of its advantages:
- HIGHLY-TARGETED, PERSONALIZED CAMPAIGNS
With this knowledge, you can produce marketing material that appeals to them and wins them over as clients. Information can direct your content marketing strategy and help you decide when and where to publish advertisements and other marketing materials.
- MORE REGULAR MESSAGING
Numerous modes of communication can employ data. By utilizing data, you can increase your reach through a variety of communication methods. Consumer insights guarantee that messaging is aligned and consistent.
- BE AWARE OF WHAT IS AND IS NOT WORKING
You may find the precise content that is guiding leads through your sales funnel with the aid of data-driven marketing. This assists you in precisely figuring out how much money and time you should spend.
- CLASSIFY YOUR VIEWERSHIP
As a marketer, you have to be aware that not every client has potential that can be reached with the same message or using the same marketing strategies. You may better arrange your prospects by breaking down their actions, habits, and demographics into segments.
- GET TO KNOW YOUR CUSTOMER’S PRIORITY
Data-driven marketing allows you to know your customers better even before they hear from you. Data may inform you in advance about their preferences and areas of interest, allowing you to target them with the ideal message to capture their interest and convince them to work with you.
- ENHANCE THE DEVELOPMENT OF YOUR PRODUCT
Data can assist you in comprehending the needs, issues, and preferences of your target market before launch. You’ll have greater product success if you match the features and value of your offerings to what customers want.
- USE MORE CUSTOMIZED PROMOTION
The content must be timely and relevant for it to be successful. The entire “pray and spray” approach to marketing is no longer effective. You will be successful in turning them into paying customers when you reach out to the right people at the right moment with the correct message.
By providing you with knowledge of both the caliber of your marketing assets and your potential clients, data-driven marketing can assist you in perfecting this formula for success. To strengthen your marketing, data might also highlight its weak points.
- GIVE YOUR CUSTOMERS A BETTER EXPERIENCE
Gaining an understanding of your potential customers helps your business achieve more than just increased sales and profits. Also, you are giving your clients a better shopping experience. Customers receive a ton of emails and print advertisements in the mail every day; let’s face it. The majority of these ads will be disposed of immediately.
- INCREASES CROSS- AND UP-SELLING OPPORTUNITIES
Data might also provide you with ideas and insights on how to maintain clients’ interest after they make a purchase. This post-purchase relationship could lead to loyal customers who return and make additional purchases in the future. The positive buyer’s journey experience provided by data-driven marketing can persuade converted customers to be more open to upgrades and upsells.
How to Develop a Marketing Strategy Based on Data
There are several approaches you may take to creating a data-driven marketing strategy.
USE DATA TO INDICATES PURPOSE
Without objectives, a marketing effort cannot be successful. Baseline measurements for the current campaign can be obtained from data from prior campaigns. You want to surpass those figures from the previous year. Data can help you identify your strengths and areas for development. The data may also demonstrate to you the potential reach and efficacy of your marketing strategy after all the adjustments have been made.
A national restaurant chain that wishes to increase sales of its specialty steak is one example of this. The marketing director noticed from the campaign statistics from the previous year that middle-aged Caucasian men ordering a steak for a romantic meal or a business meeting are the customers most interested in the steak special. The best time to get steak is in the evenings, from Thursday through Sunday. These figures will allow the restaurant to set campaign targets for this year. The restaurant expanded the steak special to lunch and weeknights in an attempt to surpass last year’s targets.
ADVANCED BUDGETING DECISIONS: USE DATA
Your company likely has a budget. Every department is fighting for a bigger share of that money, and marketing is no exception. Your CEO, CFO, and other stakeholders will have hard proof of the ROI and worth of your marketing efforts thanks to data-based marketing. Your chances increase even more if you can present statistics that show how your department is increasing the profitability of the business while using fewer resources to generate those sales and conversions. Data can provide management metrics like the number of transactions, website page views, email open and click-through rates, acquisition cost per client, and more.
USE DATA TO CUSTOMIZE YOUR MARKETING TECHNOLOGY.
As previously indicated, data-driven marketing may provide you with a wealth of information on potential clients before, throughout, and after they complete the buyer’s journey.
Here are some instances of how companies have used data to target certain audiences with their marketing campaigns:
Personalized Email Campaigns: One of the best forms of advertising nowadays is email marketing. Emails that are uninteresting, impersonal, or fail to grab the recipient’s attention will be immediately discarded without even being read.
You can identify the problems or pain points that your consumers are facing by using data about them. Your emails will stand out more if you include data in them.
Retargeting: Utilizing data enables you to reach out to previously purchased clients again. You can display ads to customers based on their past purchases and other relevant information.
When it comes to exploiting data for remarketing, several major online merchants are experts. Look at Amazon for a moment. Following your purchase, further products that are similar to the one you bought show up below under “items others have bought.”
Landing Pages: To collect even more marketing data, numerous businesses have used marketing data to develop precise, focused landing pages. For example, a local hair salon makes a landing page with a redeemable special offer, such as 50% off manicures. The proprietor of the salon is familiar with her clientele and will leverage data to generate compelling emails, Facebook ads, or website content.
