Data-Driven Marketing: 5 Important Reasons Why You Should Take It Seriously In 2021.
A good understanding of what of Data-Driven marketing is needed before you do anything else in your marketing. This process allows you to collect and process relevant and meaningful information from your target audience and use it for the benefit of marketing.
In this article, let’s find out what Data-Driven Marketing is and how to properly implement it in your marketing.
What is Data-Driven Marketing?
As we have seen, data plays a key role in marketing (especially digital!).
Data-Driven marketing can be considered as marketing that exclusively uses data. Besides that, the marketing mix seems a bit dated. The trend is towards the personalization of the message.
Indeed, goodbye to messages that are addressed only to large and non-segmented groups. Your message now has to reach a specific customer depending on their journey through your funnel. Data makes it possible to understand what stage the customer is at in the customer journey.
Thanks to this new aspect of marketing, you will be able to send the right offer with the right words, at the right time, and through the best possible channel. And this is where Data-Driven marketing is highly efficient.
Data is useful, use it as it should!
Customer knowledge is, therefore, more than consolidated thanks to the multitude of information that companies receive through data. And this information is more and more complete and is processed more and more quickly.
3 Things Data-Driven Marketing Is Good For.
Retrieve More Information.
All information is linked in a consistent way. This gives clarity on what actions your target audience is taking and why they are taking those actions.
Process Information Faster.
It is possible to process the information collected in real-time.
Target More Carefully.
The messages are very personalized and will be sent to the right target.
More and more companies are familiar with this system but are not yet taking advantage of it. You don’t know your customers as much as you think, so use the data!
The Benefits of Data-Driven Marketing
The conduct of a Data-Driven strategy has many advantages, first of all, it allows you to obtain increased knowledge of its customers and its market. You know who is heading to your site, and who is doing what.
The notion of persona becomes almost obsolete. All of your messages will be different depending on who you are talking to.
For example, you will be able to effectively retarget your site visitors through Data-Driven Marketing. If you sell t-shirts on your site, a customer visits it but does not make the purchase, you can target it in a personalized way.
The data will help you to know who this potential customer is, what interests him or not, thus leading you to offer him a specific offer.
Data-Driven marketing also allows it to have a very good return on investment of its campaigns (RI).
Well, quite simply because your communication will be well-targeted.
Your expenses will inevitably have an impact. If your messages are in line with what the consumer wants, there is a good chance that they will take the act of buying.
As you know, the end goal is to convert your customers. Thanks to precise communication, the lead will have a message that he likes. The probability that he will buy a product will then be increased tenfold.
Of course, Data-Driven marketing does not have the same cost as mass communication. It is easier to deliver the same message to everyone.
However, if you take the leap and deliver precise and personalized messages, you will see real benefits from this new marketing method. Through ultra-personalized communication, your client will feel privileged.
Who stays a satisfied customer, stays a loyal customer.
Think long term.
How to set up a Data-Driven marketing strategy?
Knowing about Data-Driven Marketing is one thing. But now that you know this new marketing “technique”, it will have to be put in place. Here is a list to help you understand how to implement a Data-Driven marketing strategy.
- Identify all the data you have.
Before you jump into Data-Driven Marketing, take stock of all the data you have. You probably have more data than you think.
- All data can be useful to you: data collected using cookies, all navigation data, customer loyalty data, etc.
- Also, do not hesitate to collect data from your partners or other external persons who could be useful to you (“second-party data”).
External data can be another opportunity in Data-Driven marketing.
- Set your goals to understand what data to use
All the data is not necessarily exploitable and interesting. You have to be able to eliminate superficial data which would be more of a brake than anything else for you. Keep only the data that could be relevant to your online store.
As with any marketing campaign, think ahead about the goals you want to achieve. Think about what might help you answer your questions. However, don’t stick to your goals. Stay open to all kinds of data that could potentially be useful in the future.
- Also, define KPIs to then see what works and what works less with your campaigns. You can then measure the impact of your campaigns.
- Set up relevant tools
Your data very rarely comes from the same source. This is why it is more than necessary to use tools that will be able to allow you to collect all your data. Several solutions exist to overcome this problem.
- The DMP (Data Management Platform), makes it possible to reconcile and segment customer data.
Thus, all the data can be integrated and normalized, to make them correspond for the same individual. This allows having a complete view of the profile of the individual concerned.
- CRM solutions like SalesForce or analytics like Google Analytics also make it possible to collect data.
However, the data collected is considered “cold”. That is to say that the data is not “deep” enough. Data-Driven goes much further and makes it possible to analyze consumer behavior in depth.
- Be careful, this does not mean that you should exclude these solutions from your strategy.
However, it will be necessary to add additional platforms to Google Analytics and other solutions to be as precise as possible.
- Other solutions such as the CDP (Customer Data Platform) exist to go further and fully understand the behavior of Internet users.
The software you choose will depend on many factors, such as the size of the business, the activity, or the goals you want to achieve.
- Test and learn from your mistakes
That’s it, you now have all the elements to set up your campaigns. So you can start testing your campaigns. Depending on the data collected, you will know how to target Internet users.
You will know when to target your consumer, when in the conversion funnel, with what message, and how.
You will therefore test in different ways. You will go to a certain client with different strategies and you can see which one works best.
Do not hesitate to test, it is by testing that you will understand where your campaign has weaknesses. Perhaps the timing will not be the best, or the channel is chosen will not be the most suitable.
Measure the impact of your campaigns.
After having collected your data and having tested several campaigns, you will have to measure the impact of each of your campaigns.
To measure the effectiveness of the latter, you will base yourself on the KPIs set-upstream. This can be to increase the notoriety of your site, to generate more purchases, to generate more subscribers.
After measuring the impact, you can optimize your campaigns, as we saw in the previous point. Indeed, A / B testing will be your biggest friend during these campaigns!
Also, the data is constantly renewing itself and will allow you to set up new campaigns continuously!
Other steps can be taken into account in the implementation of your strategy, such as calling on real experts in the field, making the data available to the entire company (within reason), or using the data. of your competitors to be inspired by them. The list offered here is not exhaustive but will allow you to understand in a fairly broad way how to use the data.
Today, brands must now adapt very quickly to customer demand. They must be responsive, fluid, and dynamic. The customer is constantly on the move and companies must be, like the consumer, as lively as him.
More and more, companies have the task of placing Data-Driven marketing at the heart of their strategy. In a logic of inbound marketing, the consumer is increasingly reticent vis-à-vis the communication of companies.
The latter prefers targeted, personalized, or even tailor-made communication!
There are still few companies today to take the plunge into Data-Driven marketing. If this is still not your case, you can get started now to stay ahead of your competition!
How are you planning to move forward in this age implementing data-driven marketing?
Feel free to check out this training on “Leveraging Data-Driven Marketing Strategies To Scale & Maximize ROI For Your Business!“ when you click here.
It holds great value.