Data-driven marketing is no longer a trend — it’s a non-negotiable strategy for any company that wants to survive in their ever-evolving industry. Using data-driven marketing, your company can back up your marketing strategies with data that shows you exactly what you should do to satisfy your customers. In this article, we will tackle how data-driven marketing works, and how it can benefit your business in the long run.
What is Data-Driven Marketing?
Marketing teams use data-driven marketing to gain insights into what their customers want. Data-driven marketing allows teams to collect data across multiple channels so they can improve the overall experience. They use a variety of information to understand their customers’ needs and desires to craft effective marketing strategies, and in turn, improve their return on investment (ROI).
Why Use Data-Driven Marketing?
Data-driven marketing increases the chances of customers converting, whether this involves reading a blog post, downloading a digital business card, or any other action that’s aligned with a conversion goal. The reason for this is that data-driven marketing uses the right messaging to get the word out about the brand to people who would most probably be interested. Ad agencies leverage algorithms to be absolutely certain that their marketing strategies connect with their consumers.
Below, we’ve broken down the benefits of using data-driven marketing strategies:
#1 It Targets the Right Customer
Even the rookie marketer knows that you shouldn’t target everyone — instead, you should target the right group.
Through data-driven marketing, you’ll get to know your customers beyond the basics such as age, geographic location, and so on. You’ll not only know who they are, but you’ll also be able to look closely at what they want, what they’ll most likely buy, and what it will take to convince them to choose you over your competitors.
#2 It Boosts Brand Awareness
People’s perception of your brand (also known as brand equity) plays a critical role in their decision-making process. In fact, Onbuy.com found that 71 percent of customers say they would buy a product from a brand they’re familiar with.
When they’ve heard of your brand before, they’ll be more likely to buy your product over your competitor’s products. It doesn’t matter if it’s more pricey, what matters is the perceived value they have toward your products.
Through data-driven marketing, you can create a need for your product and improve people’s perception of its value. When you get the right message across, people will be aware of the value it brings to their lives, and as a result, they’ll be more likely to buy it.
#3 It Shows You What Is (And Isn’t) Working
Data-driven marketing shows you where your strategies are (and aren’t) working. Since you aren’t leaving it all to guesswork, you have every opportunity to change your strategies as you go. Maybe your email marketing campaigns are doing great, but your Instagram campaigns could be better. In this way, you can focus your energy on strategies that work and put an end to those that don’t.
#4 It Allows You to Connect With Customers Better
By generating personalized campaigns, you can create content that’s sure to attract your customers. Data will show you who each customer is, what they want, and what content they typically consume. In that way, you can give every customer highly targeted content that connects with them.
For example, is your customer a young professional who’s struggling to find the time to exercise? To market your at-home workout kits, you could “hit them where it hurts” — or in other words, show them how your product solves their pains and provides value to their lives.
According to KO Marketing, 70 percent of brands say that personalization has increased their ROI by about 200 percent!
#5 It Helps You Create Relevant Content
Forty-four percent of users find that ads are irrelevant to their needs. By evaluating data, you can generate creative visuals, content, and copy that your target audience will react to positively — in short, they won’t find your ads annoying. Since your content caters to their preferences, you can increase the chances of converting your customers.
If you’re wondering, “What content do customers want?”, the answer is deep within data. Data-driven marketing will show you what kind of content 21st-century customers engage with. For instance, if you find that today’s customers have a short attention span, that indicates that you should focus your efforts on short-form video content.
In addition, marketing data also shows that sustainability is one of the purchasing factors for 60 percent of consumers. With that in mind, you should try to incorporate sustainability into your content to build a connection with the eco-conscious consumer.
#6 It Enhances the Customer Experience
Data-driven marketing not only increases your ROI — it can also improve the experience of existing customers.
According to Epsilon, 80 percent of customers prefer to purchase a product from a brand that offers tailor-made experiences. When your customers see that you’re taking the time to get to know them (for example, you show them content that they actually want to see), they’ll be more likely to purchase your products. You’ll be able to establish a loyal customer base who will do business with you for years to come.
Wrapping Up
By leveraging data, you can create marketing campaigns that work and are aligned with your target customers. Data-driven marketing gives you insights into your customers and allows you to give them the right information at the right time, and eventually, work your way towards conversion. You’ll be able to adapt to what they want and be more adept at navigating the ever-changing market.
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