Be a clearer Data-Driven Marketer
- Be a clearer Data-Driven Marketer
- The Benefits of Data-Driven Marketing
- The Challenges of Data-Driven Marketing
- Best Practices for Data-Driven Marketing
- The Steps in Data-Driven Marketing
- Data-Driven Marketing Examples
Data-driven marketing occurs when marketing teams design their strategies on the analysis of massive data. This analysis will provide insight into the preferences of customers and broad trends that will affect the effectiveness of an advertising campaign.
While adopting an approach to marketing that relies on data was not common however, the variety of channels that specialize in niches as well as the changing expectations of consumers have created data analysis as an essential method for modern marketing campaigns.
A”data-driven” media plan** approach is now assisted by the massive amounts of information organizations are able to access. Marketing teams collect information through the use of apps or websites and, with the help of”attribution modeling** which tracks every interaction with a brand throughout the customer’s journey. Once all this data is analyzed and analysed and analyzed, marketing teams can determine the creative assets that generated higher engagement and which channels yielded the greatest ROI, and much more. Based on this information businesses can improve their marketing strategies to provide the best experience for customers and maximize the return on marketing investments.
The Benefits of Data-Driven Marketing
Modern consumers are bombarded with advertising and messages from brands. This means that they are becoming more discerning of the type of messages they be interacting with. If they employ a data-driven approach marketing teams can dramatically improve the odds that their”target audience”** are likely to take a look their ads, participate in the webinar or read their blog, or complete other actions that help achieve an end-to-end conversion.
Data-driven strategies** enhance customer experience and perception of brands because they provide companies with an understanding of the needs of consumers and desires. They also increase conversion rates because the precise messaging provided with data driven marketing are more likely draw the attention of consumers. Some of the most significant advantages of data-driven marketing include:
Better Customer Experience
Data-driven marketing emphasizes using detailed profile of the consumer to help make the experience for customers more enjoyable. This is vital to the success of a website because nearly half customers** have reported leaving the site to buy the product from another site due to an unpleasant experience.
The additional personalization provided by data-driven marketing can build confidence between the consumer and the brand, while also creating favorable customer interactions. The ability to tailor the experience of consumers can yield tangible outcomes and results, with McKinsey discovering that personalization can bring approximately 5-8 five times** the ROI on marketing expenditure.
Better Attribution for Spend Optimization
One of the biggest challenges for marketers is to determine which areas of their advertising budget are going to waste. Data-driven marketing accompanied by analytics tools can help marketing teams discover what portion of their budget for advertising is having the most impact on brand awareness or conversions. This is done by looking at customer journeys with models of attribution such as UMM, which is a unified measurement (UMM )**. UMM examines multi-touch attribution, as well as media mix models to give an exhaustive overview of the process leading to buying. The organization can assess what is driving customers and potential customers through the funnel, and then allocate money in accordance with the funnel.
Produce Relevant Content and Copy
Analyzing consumer data provides marketing teams an insight into the kinds of creative images, text, and other content your targeted customers prefer to interact with. Sending the right message – one that is tailored to individual desires and adds value at the right moment is crucial to connect with your customers. However, many marketers are struggling to make their content relevant to their customers, as demonstrated by two crucial information points:
- The amount of blog content has grown by 800-percent** over the last five years, however social sharing has decreased by almost 90. This indicates that there is a gap between the messages of brands and what consumers value.
- 74 per cent** of people feel frustrated when they see advertisements that they feel aren’t relevant from companies.
If you examine your analytics, you will determine what messages and articles are connecting with your customers. This can help make better decision-making for your product and help better understand your customers.
Overall, adopting an approach that is based on data will allow teams to make better-informed choices, with 2 out of three marketers** believing it is more beneficial to make decisions based on data as opposed to gut feelings. Data analysis lets marketers make choices based on the realities of applications rather than theorizing. But, data-driven marketing should not ignore the emotional factors that influence the purchase decision of a consumer. Marketing professionals must analyze the data in a way that takes into account the rational and emotional aspects of decision-making to ensure that they are correctly balanced in campaigns.
The Challenges of Data-Driven Marketing
The data-driven marketing strategies can be beneficial for both consumers and marketers. But, there are a couple of obstacles that could prevent marketers from reaping the full advantages of their data, or from reaching their customers effectively.
Poor Data Quality
If you want to create an action plan that is that is governed by data, it is essential to have the appropriate procedures for data in place. This will make sure that you’re making decisions and strategies based on data of high-quality** that accurately reflects the needs of your customers. If your data doesn’t match the quality criteria for data like timeliness, accuracy and completeness, as well as representativeness and so on. You risk making decisions using data that offers only a limited understanding of the needs of your customers. In fact, almost half of new data records have at least one critical error in them and an HBR study could only loosely rate 3 percent(https://hbr.org/2017/09/only-3-of-companies-data-meets-basic-quality-standards) of data quality scores to be acceptable. In this regard prior to implementing strategies based on data, marketing departments must make sure they have quality standards for data and guidelines in the place.
Extracting the Right Information
A lot of companies have invested on big data (often investing millions) however, they have been in a position to earn a tangible benefit from the investment. If you’re collecting massive amounts of databut not the correct information – it’ll not be able to help you formulate how you market. 70 percent of marketing and sales executives have reported data-driven marketing as an important initiative, yet only about 2 percent(https://www.forbes.com/sites/bernardmarr/2016/06/27/why-investments-in-big-data-and-analytics-are-not-yet-paying-off/#12a6e2a07963) have seen a positive impact when investing in these solutions.
To make the most value from their data, businesses must have the appropriate personnel, policies and the infrastructure** in places. That means data scientists who can draw conclusions from large data sets, processes that keep data free of dust and the appropriate software partners to organize through, analyze, and process huge amounts of data. It’s the result of having staff with the right capabilities and the appropriate software tools to aid them in making the best choices.
Avoid Being Invasive
While consumers would like to have individualized experiences, they do not wish for companies to have all the information about their personal information. And, even more importantly should they choose to divulge personal data they’d like to know how this information can be made use of to benefit them. The majority of consumers are concerned about data privacy and transparency, with 79 percent of consumers** saying they will not do business with a firm if they discover that their personal information is being used and gathered without their consent.
When contacting customers via messages or other personalization strategies businesses should think about how they are delivering benefits to the consumer. Examples include helping customers to buy products versus telling consumers how much you know about the person they are. Furthermore, marketing teams must be incredibly transparent with how data is collected and used – giving consumers the ability to opt out of data collection, especially in light of regulations such as GDPR(https://www.csoonline.com/article/3292578/california-consumer-privacy-act-what-you-need-to-know-to-be-compliant.html) and CCPA(https://www.csoonline.com/article/3292578/california-consumer-privacy-act-what-you-need-to-know-to-be-compliant.html).
Implementing a strategy for marketing based on data requires time and effort since marketing teams have to ensure that the appropriate policies and procedures is in place. Although many marketing professionals aren’t comfortable with the process however, the results are worth the effort.
If your company does not have the appropriate skills and technologies in place however, it may be difficult to figure out where to start. Marketing teams should make sure that they have a thorough strategy in place prior to setting out, or should collaborate with a third-party team** that can assist their efforts to get the most value from their information.
Best Practices for Data-Driven Marketing
When determining how to implement data-driven marketing particularly at a time where global data collection policies are getting more strict (especially in the context of GDPR, and CCPA) Consider the following aspects:
Data-driven marketing is about enhancing the success of marketing** by leveraging an improved customer experience that is facilitated by data-driven insights. The customer experience is the most important aspect of this equation. Every campaign designed using information should provide an elucid solution to “what is in it for the customer?”
This is why designing a template that promotes your product does not suffice to spur downloads. Take into consideration the needs of the customer and what they might appreciate. Based on the information you have what’s the issue your client is trying solve? Where on the buyer’s journey do they stand? From there, identify the most useful piece of information or content you could provide.
Outline Clear Advantages
Consumers are more likely give their personal details when they believe that they will receive better deals or greater benefit from their interactions with brands. It is important to let customers know that they will get some benefit if they permit your business to make use of their personal information and create profiles of users. It could be specific product recommendations, or information that is insider-only in an email format. Marketers should highlight the benefits that consumers will benefit from.
A lot of consumers are concerned about how companies use their personal information – from intrusive messages to the possibility of losing their information during a breach of your network. Marketing teams need to be transparent about the information they collect and how they intend to make use of that information and the way in which it is stored and protected. Also, allow customers to have control to modify their information or even to cancel their account. This is required under GDPR and CCPA. The ability to have a clear view to where data is stored allows marketing teams to keep track of and update information as requested by customers.
The Steps in Data-Driven Marketing
The process of the implementation of a data-driven marketing strategy can be a challenge. The complexity increases when a crucial process is missed, which causes teams to retrace their steps and extend their time to market for the plan. Before you begin your marketing strategy go over these essential actions to follow and ensure that you have a strategy and the resources needed to complete each step.
Determine Which Data You Need
It will be contingent on the objective that your application is trying to achieve. If you’re looking to create person-level user profiles, you should focus on collecting information from consumers. If you’re trying to monitor the journey to purchase and the customer’s journey, you should focus on the attribution information. Once you have established your goals ensure that you’ve established KPIs which will enable you to evaluate the performance of your plan.
It’s crucial to comprehend what you intend to achieve with your data. Collaborate with your team of data scientists to identify any gaps in the current data and figure out how you can fill them in to determine KPIs and proceed.
Implement Data Quality Best Practices
If your program’s data-driven model is based on insufficient or incomplete data , you’ll not get the results you want. In fact, you could be making adjustments to your campaigns that diverge from the experience that your customers desire. To avoid this ensure you have precise data quality guidelines. This will help ensure that you are making decisions using the most current and accurate information available. Set up policies across all departments to ensure that each team has the same data using the exact format. The top dimensions of data quality** to take into consideration are:
- Completeness / Comprehensiveness
Data-Driven Marketing Examples
Data-driven marketing can be utilized effectively to help inform short-term campaigns for performance or”brand building” campaigns to build brand**. Here are some ways marketing teams can make use of data-driven strategies in their plans:
Data collection and analysis allows marketing professionals to monitor branding efforts that, while essential, are harder to measure. Through branding initiatives, companies gain greater insight into the consumer values they can appeal to as an entity. The brand’s reputation and its loyalty are vital for customer retention and growth** However, it can be difficult to prove this ROI to those who are involved – because they don’t always correspond to a tangible, direct sales.
Utilizing information such as “leading indicators** helps marketing teams discover what makes a brand resonate with customers and pinpoint areas where they can take swift steps to boost their brand’s health.
Attribution information can give your team an insight into which kinds of messages are most effective in grabbing the attention of your intended audience. The information is used to inform the user’s profile with details such as “responds to humor in ads” or “responds to humor in ads. Marketing teams can produce this kind of content and then, AI-enabled systems** can serve this message to the appropriate audience at the right time , giving them a more personal experience.
The Right Time
Be sure to make use of analytics and data to identify the most effective times for your marketing campaigns. This is a crucial aspect in personalizing your message to your customers and optimizing spending. It is the answer to one of the most important questions “What time of day or what time of the week are your customers most receptive to ads?”
For an B2B business, this could be during the working hours, where consumers are looking for a solution that can help them tackle a particular issue they face. For retailers, this could be on a weekend prior to when shoppers head to the mall to check out new styles for the season, or perhaps for Black Friday shopping. When you understand when your customers are more likely to respond to ads it is easier to reach potential customers with relevant information that they are eager to get it.
The current consumer demands demand an era of data-driven marketing, particularly when combined with the increasing amount of channels, applications and devices that you can reach customers on. Once they are implemented, these strategies enable you to leverage the potential of your data by making your customer experience more personalized as well as optimizing spending, increasing ROI.
The Right Media Channels
As an entrepreneur, your task is to connect with your target viewers in the places they’re. For younger generations, this could be through television or Snapchat. In the older generation, it could be in newspapers or magazines. Knowing the specifics of which channel to choose for specific audience segments is crucial for optimizing media spending efforts. This ensures that you get the most engagement with the least amount of budget.
With the help of attribution data marketing teams can pinpoint the most profitable channels by looking at how often an ad asset was viewed and what impact it played in helping them move down to the sale funnel.