What is Data-Driven Marketing?
In any of the fields of marketing, you must have heard the term data-driven marketing. For several years, marketing has undergone great changes. The old methods that were based on guesswork are gone. Today marketing is based on user information, which is called data-driven marketing.
What is Data-Driven Marketing?
In short, data-driven marketing is a method that is obtained through the interaction of users and customers. The collection of their data and the analysis of their behaviors, desires, and needs are predicted in the future.
This process leads to the personalization of marketing strategies and the return of the greatest possible amount of capital. So, data-driven decisions can be one of the most valuable resources in the market, and data science can be used well in digital marketing.
How is New Marketing Different From Past Methods?
Marketing has always been based on identifying customer needs and providing something that customers will buy according to those needs. This process was carried out by studying the behavior of customers and marketers’ guesses. Any action based on guesswork was accompanied by trial and error to achieve a better result.
And this trial and error forced companies to spend a lot of money and methods on this work. But today, by using user data, companies get this information in a short time. They spend their resources to improve the service they provide and find new customers using this data.
Benefits of Data-Driven Marketing
Following are the advantages of data-driven marketing:
Targeting: User data is like the fuel that powers targeting solutions. This data separates only the correct and appropriate audiences to send them advertising messages based on geographic location, language, age, and behavioral characteristics.
Lower Ad Costs: Data helps show ads to targeted audiences only. So advertisers don’t spend money showing ads to users who are unlikely to convert.
Being Relevant: Relevant customer data makes advertising campaigns more relevant and memorable. It means better recall, engagement rates, customer retention, and conversion rate.
How to Plan Your Marketing Strategy According to Data?
Step 1: Before you start collecting data, you need to decide what you’re going to use it for. This will help you collect more specific data that will help your cause.
Step 2: In this step, you must collect the data that will help you reach the goal you set.
Step 3: In this step, you should choose the platform you want to access the data with and use it to collect the data.
Step 4: Choose a professional team that can extract and analyzes the required information from the collected data.
Step 5: You should always review your process and constantly try to improve yourself.
How to Use Data-Driven Marketing in Our Marketing Activities?
It doesn’t matter if you have just decided to use this marketing method or you want to improve your marketing strategy. There are different elements that you should consider.
Automation and Integration: Integrating new tools and technologies will be very fruitful for you many times. By creating an automated process that allows you to personalize, you can stick to your goals and avoid confusing results.
Team Collaboration: Data must be managed across all departments of an organization. Marketers must ensure that information is shared across departments and teams.
Reviewing Industry Changes: You should always keep an eye on the competition in the market. You must keep up with the changes or learn from the mistakes of others. Like any part of an industry, data-driven marketing is constantly changing. Therefore, keeping up with the latest trends in the world will help your brand strategy.
Continuous Measurement: data-driven marketing is not a cure-all. Therefore, this method needs to be continuously reviewed and optimized based on the results that occur. This will help you know which tactics are working and will help your organization’s leaders understand which tactics to invest in.
Data-Driven Marketing Tools
You must have noticed that data-driven marketing is a specialized subject. With the right data, marketers can achieve almost anything they want:
- Evaluating customer data to predict their behavior
- Knowing the purchase pattern
- Interest prediction
- Identify emerging trends
However, there are many challenges to data acquisition. And this is where various data-driven marketing tools come into play. Below you’ll find some of the most common tools data marketers use.
Challenges of Data-Driven Marketing
Just like any valuable marketing strategy, there are challenges to achieving the best data-driven marketing strategy. Let’s take a look at the most common data-driven marketing challenges.
The Right Team: Due to the audience-centricity of the work and the skills required, finding the right staff for predictive analytics and finding target audiences can be a bit difficult.
Departmental Database: The success of data-driven marketing depends heavily on having high-quality, high-volume data, and this is no easy feat.
Commitment: It seems foolish to implement a data-driven marketing strategy without having enough commitment to do so. Although many companies make this mistake all the time. They may even have good strategies, but it doesn’t matter when they don’t have enough commitment and tools to implement this strategy.
Integration: If a company fails in the integration process, the company’s marketers will struggle to collect the right data to build a complete view of the customer. for example; Retail companies and e-commerce businesses always struggle to collect and organize data from social networks and mobile device
How to Solve This Problem?
You probably have access to most of this data, to begin with. But isolating it is your main challenge. Analyzing your website, ads, social networks, past years’ sales, and any other way your audience interacts with you.
Another problem is that collecting and analyzing this information once is not enough. If you want to use data-driven marketing, you must always have up-to-date and fresh data and at any time, if necessary, change your methods according to the tastes of customers and improve your service.
Difference Between Traditional Marketing And Data-Driven Marketing
In traditional marketing, market studies are available at that time, and marketers’ assumptions are used to achieve marketing goals. Unfortunately, this approach often meant trial and error. Companies have to try many strategies to achieve their goals.
But data-based marketing allows you to provide the most appropriate offer to the customer at the most appropriate time and establish effective communication with them.
Modern marketing uses insights from customer data to:
- Create a personalized customer experience
- Targeting a specific segment of the market
- Attracting new customers
- Using data, brands can measure and improve their strategies in real-time.
Example of a Data-Driven Marketing Strategy
An online store selling winter accessories faced a challenge when people started buying winter clothes. Because they intended to maximize the effectiveness of their advertisements and resources and convey them to the audience at the right time.
Meteorological data were collected from different regions and were also placed next to the store’s previous sales data, and the analysis of this data gave the result that the most purchases of winter clothes are before the start of winter and, contrary to belief, after the first snowfall of the sales year.
How Does Data-Driven Marketing Impact Business Performance?
Forbes research shows that focusing on data is very profitable. Increasing customer loyalty, attracting new customers, increasing customer satisfaction, etc., are just some of the benefits of data-driven marketing.
78% of organizations say data-driven marketing increases lead conversion and customer acquisition. But implementing data-driven marketing is not that simple.
Data-driven marketing is critical to the success of any marketing campaign. This style of marketing helps you provide the right information at the right time at every stage of the customer buying process and helps them convert from potential customers to buyers.
A data-driven marketing strategy can help you build more valuable relationships with your customers and better adapt to their changing tastes. It also helps your company better compete in a changing market.