Updated: How To Leverage Data-Driven Marketing for your Business and Increase ROI in 2021.
Consumer demands are changing rapidly, or so it seems. Hence, many marketers are turning to data-driven marketing strategies to stay ahead of the game.
This technique offers a way for marketers to use the insights from data analytics, collected through interactions with consumers, to drive business performance and optimize their overall digital marketing efforts.
Interesting Facts.
According to the Altimeter State of Digital Marketing 2019 report, many companies aim to improve their data-driven marketing – 41% of companies say data analytics is the most desired skill for new hires in digital marketing.
It’s clear why so many businesses are looking to take advantage of data-driven marketing. A survey by Forrester Consulting shows that nearly half of respondents who use marketing intelligence saw improved customer satisfaction, and almost as many saw increased customer loyalty and retention.
However, data-driven marketing is not possible without having useful data. Marketers must first understand their existing data. They must know what data to obtain, and how to obtain it. Then have good knowledge on how to analyze, and use the data to improve marketing efforts.
Prepare data for data-driven marketing
Your data needs to be clean and organized, yes, but marketers also need to look to more complex data sources, which go beyond consumer contact information.
It is essential to research detailed customer information such as demographics, education, interests, lifestyle, social profiles, and work experience. Comprehensive data files can help marketers improve their marketing strategy and create compelling content.
Marketers can consolidate consumer data by adding a robust data management platform (DMP) to their marketing technology toolbox. A DMP is a central platform on which marketers can collect, organize, and activate first, second, and third-party audience data from any source, including online, offline, and mobile.
Lotame, Clearbit, and Oracle Data Cloud are examples of data management platforms that marketers can use to implement data-driven marketing. Once marketers have leveraged data collection and preparation, there are plenty of opportunities for them to use data-driven marketing.
Improve the customer experience
A PwC study indicates that a great customer experience can translate into a premium of up to 16% on products and services, as well as increased loyalty. And by 2020, Walker predicts that customer experience will overtake price and product as a key brand differentiator.
Data-driven marketing is a great way to improve the customer experience.
For example, marketers can use the data to effectively deliver advertisements and marketing campaigns across all channels. Instead of guessing when planning and buying media, marketers can leverage the data to produce targeted marketing campaigns that are consistent and aligned with consumers.
Data-driven campaigns help marketers analyze their customers and identify areas for improvement to improve the customer experience.
Create personalized marketing messages
More than ever, customers expect brands to understand their needs on an individual level. By leveraging consumer data, marketers can create effective campaigns with highly personalized messages to target specific customers.
For example, marketers can use data to aggregate desired target audiences in an email campaign. In addition to automating emails, data allows them to easily customize messages to connect, individually, with each customer, instead of sending a single message.
McKinsey & Company found that personalized marketing could increase total sales by 15-20% and digital sales even more, while dramatically improving the ROI of marketing spend on marketing channels.
Advance product development
Developing a new product can be difficult, especially for brands that don’t fully understand their customers’ needs. Products often fail when the consumer is not the primary focus, however, information-driven marketing can dramatically improve product development.
Equipped with actionable insights about their customers, marketers can better understand their target audience and help brands develop products that are better suited to the specific market.
Although product failure rates tend to be high, a data-driven approach can significantly reduce the chances of a product failing.
Improve the efficiency of the sales funnel
A high-converting sales funnel requires the right content, at the right time, to guide potential customers through every step of the buying journey. Data-Driven Marketing can help marketers optimize their sales funnel and increase conversions.
Armed with data, marketers can identify specific pieces of content that move prospects through the sales funnel and optimize their campaigns accordingly.
By gaining a better understanding of their target audience and optimizing the sales funnel, marketers can increase both their conversion rates and their ROI.
Leverage data-driven marketing as a competitive advantage.
Marketers today have access to more data than ever before, and data-driven marketing empowers marketers to use that information to improve their overall digital marketing efforts.
But before they can implement this strategy, marketers must first make sure their data is ready for the job.
With detailed and organized data, marketers can leverage information-driven marketing to meet consumer expectations and differentiate their brand from the competition.
How are you planning to move forward with implementing data-driven marketing strategies?
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