What is Data-Driven Marketing?
Data-Driven Marketing is transforming its innovative aspect into a fundamental part of business and advertising strategy. This branch of marketing can be defined in many ways and benefits companies with its many advantages, do you want to know them? Keep reading!
It is no surprise that data is already an essential part of many businesses: Data Science, Big Data, and Business Intelligence are three of the disciplines that are most needed today. But what do marketing departments do with that data?
What is Data-Driven Marketing?
The Data-Driven Marketing strategies are based on the knowledge extracted from the analysis of Big Data. Data collected through interactions and engagements with consumers that businesses need to deliver personalized content to customers, and understand future trends and behavior.
Although there are many reasons why companies use Data-Driven Marketing, most of the time their goal is to improve and personalize the customer experience, which involves understanding the data you already have, the data you can obtain, and how to organize, analyze and apply that data to best efforts.
The benefits of Data-Driven Marketing
Businesses and consumers alike can gain a lot from adopting Data-Driven strategies. So when these strategies are done correctly, their benefits can be several:
# 1 Personalized Marketing: Companies must convey the right message to the right audience at the right time. Marketing based on data or Data-Driven allows brands to create a personalized campaign that converts potential customers through a deeper understanding of the customer profile.
# 2 Clarity: With a large amount of information in their database, marketers can more precisely examine information about customers and prospects. With a data-driven approach, it becomes much easier to separate and group the target audiences you are trying to reach
# 3 Multichannel Experience – Marketers can leverage data to extend their reach across multiple networks as well as take communication beyond email. Data-driven ad delivery through automated marketing channels or campaigns ensures that the message is consistent, aligned, and reaches each recipient in the perfect place at the perfect time.
# 4 Customer Experience – Many popular brands use Data-Driven Marketing to improve their customer experiences. For example, organizing customer satisfaction surveys and pointing out specific areas for improvement.
# 5 Better Product Development: Data-driven marketing dramatically lowers product failure rates. Businesses can establish a better understanding of their target audiences, which leads to the development of more suitable products for that particular market.
Data-driven marketing challenges
Having the right team: Due to the niche of the job and the skills required, it can be a challenge to attract the right kind of data specialist staff. For both companies and professionals, proper training is a challenge to adapt to business changes.
Commitment: some companies continue to make the mistake of not committing to change. Businesses can have a well-defined strategy, but if they do not have the tools and digital culture, it is difficult for them to be applied successfully.
Integration: If a company fails in the integration process, marketers will have a hard time working through the data. For example, retail companies and e-commerce websites are often faced with the task of collecting and structuring data from social media and mobile devices.
How to Take a Data-Driven Approach
- Automation – Integrating new tools and technology into your marketing strategy can be overwhelming at times. By creating an automated process that still allows for customization, you’ll stay true to your goals and avoid complicating your results.
- Cross-team collaboration – Since data is something that must be managed across an organization, marketers must ensure that information is shared across departments and teams.
- Monitoring Industry Changes – Keep a close eye on your competition so you can follow their lead or learn from their mistakes. Like any other area in this industry, data-driven marketing is constantly changing. Staying up-to-date on the latest trends will only help you with your branding strategy.
- Continuous measurement: Data-driven marketing is not a one-size-fits-all solution. It must be constantly monitored and adjusted based on the results (successes or failures) that are being seen. This will help identify which tactics work and will encourage buy-in from the organization’s leaders.
Forecasts indicate that data marketing or Data-Driven will be applied in most companies to reach their customers, something that is due, in part, to the needs of consumers and their expectations of user experience.