Gone are the days when marketers prepared marketing campaigns for untargeted masses. The digital age has widened the spectrum that now allows data-driven approach in terms of marketing. According to Forbes Insights, companies that use data-driven marketing are 55% more successful.
Marketers use a wide range of tools to capture data at every stage of a marketing campaign. Often, you will hear them use the term data-driven marketing. The key reason being that the data that they find enables them to understand customer expectations, which they later use to make marketing decisions.
Data says it all. Below are the benefits that marketers reap from a practical data-driven marketing approach.
Understand Customer Needs and Purchase Behavior
With relevant data, the marketer learns and understands a customer’s needs. It provides critical insight on how to build a marketing strategy that converts. Data can be narrowed down to demographic and other characteristics that helps in creating an effective communication tool.
The advantage of employing data-driven marketing is that it guides in creating customized campaigns. Data helps marketers understand a client’s profile, allowing them to use that valuable information to develop a customer retention strategy (such as loyalty programs) and even improve relations. For example, an e-commerce website that uses tracking tools can monitor purchases and analyze buying patterns. The data that is tracked can determine which promotion or incentive schemes yield better results. Furthermore, data provides information on which campaign resonates with a specific group.
Continuous Product Development
Many products don’t achieve ROI because of various reasons. One major reason is failing to understand the market. Also, it happens when marketers fail to tune their strategy with ever-changing user needs. Data-driven marketing provides business with vital information on where to improve. It also gives a clear picture of user needs and expectations.
Optimize Marketing Channels and Sell More
Data can help find other sale avenues. For example, it can be used in a sales funnel by making adjustments to a content based on what the company knows was successful or successful in previous campaigns.
Marketers can design strategies based on channel leads, then optimize them to make more conversion. Leads that are generated from Facebook or Google Display Network (GDN) can reveal a selling opportunity; if you find that a campaign works significantly better on one channel, then you can invest most of the budget towards that channel and vice versa.
Channels like emails, blog posts, or landing pages can also be optimized. Regardless of the framework, data-driven marketing will identify which performs better between all of the channels. Similarly, it will note the message that elicits more positive customer reaction.
Better Customer Experience
Marketers can use data collected to create cross-channel strategy services that can enhance the consumer experience. That means whether it’s via social media, face to face, or over the phone, the customer can expect the same services; this even results in a clear picture of how users engage with the brand.
Learn from Other’s Mistakes
Even small details that are overlooked can cause mistakes can ruin a business. Failure is an invaluable learning experience that a business can avoid by using pre-existing information from other company misfortunes or records. It can save time in the long-run and investment if one business can determine what worked and didn’t work for a similar business, then use that information to make decisions.
Learning from Own Failure and Success
Looking at one’s own previous marketing strategies and its results is a valuable resource for a company. The marketing team can make improvements so that more leads are generated and for a higher ROI.
Feedback Directly from Customers
The easiest way to collect data relevant to a business’s product is to ask customers directly for feedback. A survey or brief questionnaire may collect valuable data that can be useful in growing a business. In addition, this creates a relationship between the business, its customers and prospective customers.
The truth is that no marketer can perform miracles no matter how good they are – they all need a marketing strategy. Marketing itself is customer-centric and with the right information, marketing teams are empowered with insights that fundamentally shape the success of a business. Consider implementing data-driven marketing to boost your campaigns.