Data-driven marketing is a term that you hear marketers use more and more. It has become a fundamental part of advertising and business strategy and is no longer considered an innovative approach to marketing, rather a requirement.
Data-driven marketing is intended to enhance and personalize the customer experience. It is built on the understanding of the data you have, the data you can get and how to best organize, analyze and apply the insights that you find. These data-backed insights and metrics are then used to maximize success. Marketing has become a more customer-centric strategy. Your brand value is no longer just based on incentives and ads but on your ability to connect with your target audience, convince them to purchase, then go above and beyond to satisfy them. Data-driven marketing does just that.
Benefits of Data-Driven Marketing
Both businesses and consumers can see immediate benefits from data-driven marketing. Some of these benefits are:
- Better Audience Insights: having the data to help understand your customer is the key to building a successful marketing strategy. Data gives you the demographic and behavioral data you need to create the best communication plan. Gaining actionable insights enables marketers to develop increasingly targeted campaigns that have a much more strategic impact.
- Personalized Marketing: the key to modern marketing is relevance, reaching the right people with the right message at the right time. You need to take the time to understand your ideal customer profile. Then you need to customize campaigns to help convert leads that are personalized to each customer profile. A study from McKinsey found that business that employs data-driven personalization delivered five to eight times the ROI on marketing spend.
- Better customer experience: through data-driven campaigns, you can look more closely at the entire customer experience. You can easily add customer satisfaction surveys and help gain understanding of where you need improvement. Instead of spending time on improving the entire customer experience you know where to spend your time and what is important to your customer.
- Cross-Selling & Up-Selling: use data to find different avenues to generate revenue from your end consumer. Are there areas in the sales funnel where you can offer specific information or content that helps to move your consumer through more quickly? Data can show you where the same products can be sold to customers more frequently. It can identify the groups of people that would benefit from specific and targeted holiday campaigns by understanding their preferences and the products that they like. Use data to sell more!
Examples of Data-Driven Marketing
Whether you are just in the process of moving to a data-driven strategy or are looking to improve your strategy here are a few examples of how to implement a data-driven marketing strategy.
Targeted Email Campaigns
Marketing technology can help you collect all of the information needed to create different customer segments. Once you develop segments you can create email campaigns specifically geared towards the needs and interests of a particular group. This data will not only help with automation but you will be able to personalize messages to each and every customer you send to.
If someone has previously purchased from your site, or shown interest in a particular product over and over again, why would you not look at them again? Retargeting is a critical piece of digital marketing, it is also a great data-driven campaign. You can leverage marketing technology to offer customers ads that are relevant to their purchases. A skiing company may send an offer to customers who recently purchased skis trying to get them to purchase additional skiing products such as bindings, or boots. Research shows that retargeting consistently outperforms all other targeting strategies. It is a great place to start when implementing a data-driven marketing strategy.
Unlike traditional landing pages, targeted landing pages use data and customer segments to help decide which groups are interested in a particular product or solution. Then you can push customers with a certain interest in a relevant landing page pushing for more conversions. You are helping to guide your customers through a customer journey on the product or solution they are most interested in.
Data-driven solutions are becoming a key driver in marketing strategies. As customers come to expect a more personalized and targeted solution it is vital that you use data to drive your campaigns.