3 reasons you need to adopt Data-Driven Marketing
Are data really ‘the new gold’ in online marketing? And if so, how do you create value from your data? In this article, we explore how you can use data-driven marketing to take your online strategy to the next level, improving your reach and growing your business.
Meeting today’s demanding online consumers
As digital interaction and purchasing continue to increase worldwide, more and more consumers expect tailored content. From a customer experience that is smooth and consistent on every touchpoint to personalized product recommendations and more. How can you make sure your brand meets these high expectations? Our answer: data-driven marketing.
What is data-driven marketing?
In simple terms, data-driven marketing involves collecting data about your website visitors and target audiences and analyzing the data to gain actionable insights. You can do this either manually or automatically. Today, online companies have access to a growing range of data, and utilizing this can open doors to new levels of personalization, automation, and campaign optimization. In short, data-driven marketing enables you to get to know your customers personally, to offer them exactly what they want, when they want it.
Why is data-driven marketing so important?
Through data-driven marketing, you can create precise and high-quality marketing campaigns that hit your audience’s sweet spot, thereby improving results for your company. The possibilities are nearly endless, from increasing targeting accuracy with distinct market segments to saving time through automated emails. With data-driven marketing, you can automatically offer your consumers the content they desire while saving time and resources and increasing your return on investment (ROI).
3 benefits of data-driven marketing
Here are three benefits you can expect from adopting data-driven marketing solutions:
1. Insight into your market and strategy optimization
With extensive data collection and analysis, you can understand visitor behavior in detail: how do they come to your website? Which visitors are likely to convert? How loyal are your customers? How will these consumers behave in the future? Data-driven marketing software offers answers to these questions and many more. With the right tools in place, you can automatically optimize your marketing strategy, increasing your conversion rates and retaining your customers. For example, through market segmentation, lookalike marketing, and predictive analytics, you can target specific groups with content tailored to their characteristics, making sure you share your offers with the consumers who are most likely to be interested.
2. Create new value for your prospects and consumers
With the data you collect and its insight, you can offer your visitors new value propositions. For example, you could make your content more relevant to a specific consumer by automatically tailoring your home page to their wants and needs, while recommending unique products matching their profile. You can also create new ways of streamlining your customers’ engagement with your brand, including chatbots, omnichannel marketing, and image search facilities. These instruments will not only increase your productivity and save time, but they will also give your visitors the feeling that with your brand, their wishes will be taken care of every time.
3. Improve your prospects and customers’ relationships with your brand
Today’s consumers expect relevant content, and data-driven marketing enables you to meet this demand. At each stage in their customer journey, from awareness to retention, data-driven marketing will help you offer your customers positive experiences: from a tailored ad campaign that answers their exact query to a discount email that reminds them of the item in their basket, you can show them what they want, when they want it.
Learn more about why personalization is important for the customer experience.
3 steps to setting up a data-driven marketing campaign
If you want to start harnessing the power of data in a new marketing strategy, follow these three steps:
1. Start collecting data
Find and define your data sources across your channels and set up a system for automatic collection.
2. Process the data
A Customer Data Platform (CDP) can store the raw data before processing it into useable and actionable material. A CDP can also organize your data, making it easily accessible for your team while creating 360-degree customer profiles.
3. Set up tracking and actions
Whether you are looking to find new markets to target through lookalike marketing or want to set up an automatic email tailored to a prospect’s buyer profile, this is the step in which you set up and apply your desired automated actions.
Once your data-driven marketing system is in place, continually assessing its performance is one way of staying ahead of the curve. An important metric to consider when evaluating your campaigns is their return on ad spend (ROAS).
The challenges of adopting data-driven marketing
If data-driven marketing represents the future of online advertising, why are some companies still holding back? Here are some of the common challenges that are slowing down the uptake of data-driven marketing:
Lack of necessary experience, skills, and technology
Concerns about data privacy and lack of knowledge about regulations
Lack of high-quality or relevant data
Current data silos are inaccessible and, therefore, unusable
Too tough to get verifiable results or ROI
By working with a partner with expertise and experience, like Datatrics, you can overcome these challenges and set up a robust and future-proof data-driven system that offers you results.
Reaching the next level with data-driven marketing
Data-driven marketing offers increasing opportunities to raise your online profile, reach a wider audience, increase both prospects converted and customers retained, and, ultimately, continue to grow your business. By effectively using the power of data, you can optimize all your marketing campaigns, learn much more about your audience, and strengthen brand loyalty. The challenges you may have to overcome are small compared to the potential gain: so, take the step now to reach the next level.