As you know, as a marketer, a brand or business can have different kinds of customers with different characteristics and loyalty to the brand. Not all of those customers are alike. How do you know what message to send to which customer? How could you get the data about it?
Data-driven marketing is a term you hear a lot these days. Basically, it’s when marketers gather data from the campaigns they run, the research they do, and the technologies they use to feed it back into future campaigns. In this article, we take a deep look at what data-driven marketing is, why it is important, and what the benefits of your marketing efforts are. Don’t waste your time trying to run marketing campaigns without taking research and data-driven concepts into consideration.
What is Data-Driven marketing?
Data-driven marketing is using data to improve the way you market your product or service. It is about using data to test, learn, analyze, and optimize. With data-driven marketing, you can make strategic, informed marketing decisions based on how your audience engages with your business. As you know, marketing data comes from different sources. Analytic tools, social media tools, customer data platforms (CDPs), and customer relationship management systems (CRMs) are just some of the things people use to understand their prospective customers.
Let’s say that you want to add video to your website’s contact page, but you are not sure it’ll make a difference in terms of conversions. With a data-centric mindset, you connect your website to an A/B testing tool. This tool then sends some site visitors to your original contact page and others to the contact page with a video. But what are the pros of this method?
The video increases your conversion rate, so you permanently add it to the page and reap the rewards of more conversions. You consider adding video to more pages and plan some additional testing. Another advantage is that the original page without the video performs better, so you dive deeper into the video and page analytics to determine your next move. You’ve learned myriad valuable things about your audience that help push your marketing strategy forward.
There are seven pillars of data-driven marketing, which are:
Data-driven marketing doesn’t just mean using digital advertising platforms like Google Ads, Twitter, and Facebook Ads that use and produce data. Let’s take Google Ads as an example. Their algorithm processes a trillion data points in order to find the right person with the right ad at the right time. The algorithm works the same for everyone.
How does data-driven marketing make you a better marketer?
Data-driven marketing improves your ability to gain a deeper understanding of your target customers. Figure out what channels are most effective for communicating with them. Define how to most effectively communicate your value and refine the conversion journey to make prospects convert more efficiently. That translates into an increased conversion rate and a lower cost per acquisition. Ultimately, this leads to a higher return on investment, getting you more of what you want for less.
What are the benefits of data-driven marketing?
Data-driven marketing has several benefits that will maximize your business growth.
The main objective of data-driven marketing is to incredibly optimize marketing strategies and processes to adapt to changing trends and cater to the unique requirements and expectations of consumers and audiences by leveraging data to obtain thorough insight into the expectations of the customers.
When your brand completely understands who, where, what, and why are engaging with your marketing efforts, you, along with your marketing team, will be capable of making better decisions regarding each and every aspect, ranging from the advertisement timing in a specific medium to the personalization of marketing copy to fulfill specific audience segments.
Personalization
Personalization is the biggest advantage of data-driven marketing. This brilliant marketing approach is able to create highly targeted campaigns along with personalized messaging. According to a study, data-driven personalization results in incredible ROI (return on investment) on marketing investment.
Analyze What’s working and what’s not.
Data-driven marketing will help you identify specific content, guiding prospective clients throughout your sales funnel.
Simple Segmentation
Segmentation of prospects based on their actions or behaviors will help you target your customers easily and properly.
Product development
What determines the success of your product? Suppose you have launched a top-notch product but no one has its requirement. Your warehouse will get stuck with useless devices without any sales. But you have the support of Data-driven marketing. When you perfectly realize for whom you’re developing products, you can start targeting their specific needs by properly addressing their pain points.
Improved Product Development
It’s primarily due to a poor analysis of the market. With the help of data-driven marketing strategies, you can get a better understanding of your target audience. That leads to a reduced product failure rate.
Work on time
Owing to data-driven marketing, you can easily pre-target your customers. That means that you can start predicting their preferences and customizing your marketing emails and texts When they are in purchasing mode.
Bottom Line
Based on an in-depth understanding of consumer behavior, data-driven marketing enables companies to tailor campaigns, improve strategies, and make well-informed decisions. Marketers may maximize return on investment and drive business growth by using data to better product development, messaging, and targeting. While sourcing and organizing data can be a complex process, the wide range of benefits of data-driven insights for marketers and organizations are numerous and extremely critical.