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How Advanced Data-Driven Marketing Can Impact Your Business

Data is the new oil, and businesses capable of harnessing the data are the new superpowers. With the ease of access to technology, collecting and utilizing large amounts of data has been easier than ever before.

Data-Driven Marketing

Data is the new oil, and businesses capable of harnessing the data are the new superpowers. With the ease of access to technology, collecting and utilizing large amounts of data has been easier than ever before.

The data provides businesses with business intelligence, which they can use for data-driven business decisions. For businesses all around the world, data plays a key part in optimizing campaigns to boost marketing results while reducing spend.

Not only that, both small and large businesses can utilize advanced data-driven marketing analyzing big data gathered from all customer touchpoints to better understand which point of sales work the best, which marketing campaigns have better conversion, and which are likely to bring more results over time.

If you’re a small or medium business owner, implementing data-driven marketing can also boost sales over the long run.

Let’s dive in deeper and see what Data-Driven Marketing really is, and how it can have an impact on your business.

What is Data-Driven Marketing?

Data-driven marketing is used by businesses to build their marketing strategies based on the analysis of large amounts of data. This analysis offers insights into target audiences, customer preferences and broader trends that stand to impact the success of a marketing campaign. 

While previously frowned upon, due to the multitude of niche media channels and evolving consumer expectations have made data-driven marketing and data analysis an essential process in modern marketing campaigns. 

A data-driven planning approach is now enhanced by the vast amount of information that businesses have access to. Businesses collect data through the use of tools, software or various websites, and with good attribution modeling, they can track each brand interaction along the customer journey.

When all of this information is analyzed, businesses can see which strategies drove more engagements, which channels offered the highest ROI, and more. Based on these findings, businesses can augment their campaigns to ensure the best customer experiences and the greatest return on marketing investment.

This helps businesses to double down on strategies that work, and find critical business intelligence which provides an edge over the competitors.

Data-Driven Marketing Best Practices

The following best practices ensure you’re making the most of your customer data when incorporating it into your marketing efforts.

Know Your Audience

The success of your data-driven marketing depends on the accuracy of your customer data. You could have the most seamless data collection process in place, but that data would be useless if it didn’t correctly reflect your customers and target market.

Before you work to apply data-driven marketing strategies to your business, make sure you’re intimately familiar with your audience.

Conduct research on your ideal customers, build your buyer personas, and educate your teams on these profiles. Reach out to current customers to better understand who’s shopping for and buying your products. Hold focus groups to ask questions to a live audience and receive unedited feedback.

Once you know your customer, you can trust your customer data.

Manage Your Data

Data-driven marketing is an iterative process, meaning it’s constantly evolving and expanding. This requires not only high-quality data collection but also data management.

Data management is critical to the success of your data-driven marketing efforts — it helps you better understand your customers, routinely analyze your customer data, evaluate new marketing and acquisition opportunities, and save your team time and resources.

Stay Compliant

All the data in the world is worthless if you don’t follow the law, stay compliant, and respect your customer’s privacy. In recent years, countries and organizations have cracked down on how businesses leverage their customer data. You’ve likely seen these ordinances reflected in laws like General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

These laws aren’t the enemy — they’re designed to protect consumer data and hold organizations accountable regarding how they use that data. If anything, these laws make your marketing more transparent, trustworthy, and effective.

To ensure the success of your data-driven marketing, research these laws to better understand how your business must comply.

Data-Driven Marketing Strategies

You have to keep in mind that data is going to be the driving force behind all your successful marketing campaigns. So, your responsibility is to set a system to track all the data of your business and store them in one place. Once that is done, you need to decide on your performance metrics and success benchmark. Based on this data, you need to evaluate, plan, execute, test, analyze, monitor, and re-plan everything according to the data and results.

Let’s dive deeper and discuss important steps you need to go through in order to build a comprehensive data-driven marketing approach.

1. Segment Your Audience

There are differences among members of your target audience, and they shouldn’t all be treated equally. The segments that make up your broader target audience vary by product, and it’s your job to define them.

Personalized, targeted messages achieve greater results than general broadcasts, and segmentation helps you get in front of the right people at the right time. Suppose your store sells both men’s and women’s apparel. To reach those segments, you would need two different marketing messages. Furthermore, if you have multiple stores, you might use different marketing tactics in Toronto and Ontario.

You can divide your audience in virtually any way you like. Aside from demographic differences – including gender, age, and location – your target audience also has different needs and preferences. Their buyer journeys also differ.

Through data-driven marketing, you can accurately segment your audiences (and automate segmentation). Segmentation is particularly important with email marketing, social media marketing, and retargeting.

2. Retarget Your Advertising

Marketing strategies like retargeting (aka remarketing) are critical for all marketers, especially for cross-channel marketing. Your brand can be kept top-of-mind among users who have previously expressed an interest in your products or services through retargeting.

By collecting customer data, you can choose to resurface products to consumers who browse specific products on your website, through methods such as social media advertising or abandoned cart marketing.

3. Optimize Your Content.

Writing copy for your website, blogs, social media, advertising … who is this for? They are your customers. If you didn’t have customer data, creating content would be a guessing game.

By incorporating data-driven marketing into your content, you can enhance its context. It enables you to understand and serve your customers through the content you publish on your website and the ads you run. Regardless of demographic or psychographic data, the insight into customer questions, complaints, and desires can help you craft engaging content.

A good place to start is with keyword research. Don’t make assumptions about what terms and phrases people search for. Make use of your customer data to optimize your content and research keywords.

4. Align Your Teams

Customer data is not only for marketing, but can also make sales and support operations more efficient. Big data offers the flexibility to bring these teams together to ensure that their efforts and strategies are aligned.

A customer data platform (CDP) is one way to accomplish this. Using a CDP, you can create individual customer profiles that can be used throughout your company. Having access to such data eliminates the need for siloed customer information.

Your company can present a cohesive customer experience by focusing marketing (as well as sales) efforts around the CDP.

5. Delight Your Customers

Today’s consumer browses and shops across different devices and platforms. Based on these behaviors, do you think they want to be treated as multiple customers? Absolutely not.

You can provide a fantastic omnichannel experience by using data-driven marketing and accurately identifying your ideal customers across different devices. You not only save time and resources by doing this, but you also refine your customer’s experience and show them you’re paying attention to their needs and behaviors.

6. Be Committed to the Plan

Whether the business is small or large, a sudden change in plan is a difficult thing to cope up with. And this is not an exception for the case of consolidating a data-driven marketing approach.

Time and resources must be committed in order to see a data-driven marketing approach succeed. Without these efforts and resources, it is highly difficult to form a comprehensive future plan. Therefore, commitment in wanting to execute the prepared plan is very important in building a data-driven marketing approach.

7. Track Data From Their Source

Not tracking your data is costly and a beginners mistake. If your business operations are online, you can track all your customer interaction and website traffic data from Google Analytics for free. Not having a big budget is not a legitimate excuse for this anymore.

Similarly, all advertising platforms including social media offer analytics dashboards to advertisers. A business must monitor these data and figure out what is and what isn’t working and why it is or is not working for you.

Data flow automation is another crucial part because you need all the data to be stored in one place. Otherwise, you are going to have a difficult time correlating them with one another. There are thousands of analytics solutions that you can choose for this purpose.

8. Provide Value

Data-driven marketing is all about improving marketing based on an enhanced customer experience which is enabled by analytics and data. Each digital marketing campaign designed with data needs to demonstrate a clear answer to the question “what is in it for the customer?”

With the customer in mind, consider the user and what they would find valuable. Based on the data, what is the problem the customer is trying to solve? Where in the buyer’s journey are they? From there, determine the most helpful piece of content or information you can provide. 

9. Set Key Performance Indicators

Selecting Key Performance Indicator (KPI) for your operations such as marketing, sales, finance, accounting is an important step. You need to find out how these KPIs work with your data tracking & analysis process. You need to define your KPIs and create a reliable system to analyze it.

For example, in Canada, the Digital Marketing agencies focus on brand perception over brand awareness. On the other hand, digital marketing agencies worldwide have a strong incline towards valuing the conversion rates over brand perception or brand awareness.

7. Outline Clear Advantages

Customers are more likely to offer their personal information if they believe they will get better deals, incentives or more value out of their interactions with your brand. So provide incentives to customers if they allow your business to leverage their data and build user profiles. This may be anything from personalized product recommendations to earlier access to latest products or insider information in a newsletter format. Businesses must highlight what consumers will gain.

8. Perform A/B Testing For Better Optimization

One of the biggest issues with many businesses, both small and large, is that they do not want to do A/B testing and in the worst case scenario, they are prone to making assumptions based on past experience. As a result, your business cannot perform up to its level best.

For example, if you are an ecommerce business, a cart abandonment rate of 40% might sound great to you, however, unless you do more A/B testing, you will never know if that is the best result you can achieve. The more you scale up, the bigger improvements you can achieve through testing your ideas.

9. Report Your Outcomes & Redeploy

One way to tackle and organize all the data and reports you are receiving, is to give attention to things that have a maximum impact on your business results.

This way you will be able to prepare data and reports that will act as a guide for future growth. Find out the strategy that works the best for you, produce the best results, replicate them in your next campaign, and re-optimize them for better results.

10. Be Transparent

Be transparent on how you use customer data. Many customers are concerned with how businesses use their data – ranging from invasive messaging to risking data leaks in a breach of your network. Businesses must be highly transparent about the information they are collecting, how they will use that information, and how it will be stored and secured. Additionally, provide customers control to change their data or to delete their account.

Today’s consumers need rapid changes. The product life cycle has become way shorter than it used to be. This is why marketers are bound to get the expected result without a data-driven strategy.

The Benefits of Data-Driven Marketing

With billions of brands constantly fighting for our digital attention, bringing business through online channels can be overwhelming for small businesses.

By using a data-driven approach, businesses are able to drastically increase the chances that the target audience will click on their ad, read a post, see a content or interact with the business to drive a conversion goal. 

Data-driven strategies improve customer experience and brand perception, as it gives businesses an understanding of the customers needs and interests. They also drastically improve conversion rates, because the highly targeted and customised messaging enabled by data-driven marketing is more likely to catch the attention of users. 

Some of the top benefits of data-driven marketing are discussed here. 

Better Customer Experience

Data-driven marketing focuses on using in-depth research on consumer profiles and analysis of past actions taken by customers to make their experience customised and better. This is an  essential part of a businesses success, as almost half of customers report leaving a website to purchase a product or service elsewhere is due to a poor experience.

The personalization factor provided by data-driven marketing enables the building of trust between a brand and its consumers while also creating positive customer experiences. Personalization of customer experience for consumers can provide 5-8 times the ROI on marketing spend.

Better Attribution for Spend Optimization

One of the most common challenges for businesses is determining where their advertisements aren’t performing well and where their budget is being wasted.

Various analytics tools together with data-driven marketing allows businesses to find which portion of the advertising budget is providing the most impact on conversions and brand awareness. This is done by evaluating customer journeys using attribution models. 

Businesses can determine what encourages conversions in prospective customers, and then allocate budget accordingly.

Produce Relevant Content and Copy

Analyzing and evaluating customer data provides businesses insight into the types of content your target audience prefers to engage with. Delivering the correct message – one catering to personal interests and creates value – at the right time is critical to connecting with your customers.

By evaluating your analytics, you can find what messaging and content are resonating with your audience. This can lead to more effective product decisions and help you understand your clients.

Better Decisions

Taking a data-driven approach to marketing allows businesses to make more informed decisions, with 2 out of 3 digital marketers agreeing that one should justify decisions on data. 

Data analysis allows businesses to make choices based on real-time and past data, instead of theoretical predictions. Data-driven marketing also takes into consideration the emotional considerations that can go into a consumer purchasing decision. 

Businesses must evaluate data within a framework that considers both rational and emotional decision making to ensure they are balanced properly in campaigns.

Conclusion

In summary, a data-driven marketing strategy provides you the ability and scope to collect complete data at every point of interaction with customers. Also, it lets you take advantage of the analytics for better insights. The entire process is action-driven so you can assess the result of your activities all in real-time.

There are various tools, both free and paid, that small and large businesses have access to with which they can analyze the behavior of users.

However, one needs to keep in mind that, no matter how good a digital marketing strategy is, it can’t perform miracles. If you want to see improvements in your business in just one day, a lot of time and effort needs to be put into planning beforehand. 

Data-driven digital marketing will not stop, it will instead get more and more sophisticated. You should bring all your marketing channels under this strategy to discover what helps you to achieve your business objective in the best possible way.

Business Data Analysis Concept. Marketing Strategy, Analytics with People Characters Analyzing Financial Statistics Data Charts on Computer. Vector illustration

Increase Your Outreach With Damex Digital!

As with all things, learning to collect data and outline data-driven marketing strategies and using them to their fullest takes time. Precious time which you may not have due to other matters regarding your business, family or maybe you wish to use that time to produce more content, whatever the reason maybe. 

The shortage of time has resulted in most people neglecting or completely abandoning the idea of developing a comprehensive data collecting strategy and optimizing their content based on that strategy. The mistake they make is to think that they will attract customers as long as they put out their product in the market. They expect the customers to come to the.

That’s a huge mistake. Most people who do this either do not have a good sense of business or are just starting their business as such do not have the know-how’s.

You don’t wait for customers to come, you need to be proactive and attract your potential customers.

If you lack the time to develop a data-driven marketing strategy from the ground up, by yourself, you should hire professionals to do it for you! Damex Digital is a professional digital marketing agency based in Smithers, Canada providing comprehensive solutions to all your digital marketing problems— including helping you out to develop data-driven marketing strategies.

With us you get highly-skilled, professional strategy developers managing all aspects of your content roadmap and optimization. Leave the SEO and content optimization to us, while you take care of other matters pertaining to your business.
Get higher ROI, boost your conversion rates and increase your revenue with professional Digital Marketing services by Damex Digital!

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Damex
http://damexdigital.com

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