What is Data-Driven Marketing?
As we all know, data is the raw facts which are collected and stored in a database to produce useful information. Data can be extracted from different sources such as Surveys, Campaigns, Facebook, Instagram, Linkedin, Forms, Images and more. Higher Management/Marketers/Decision Makers use this information to take the decisions and frame the strategies to achieve their respective goals. The processed information is further presented in readable forms such as Charts, Graphs, and Diagrams.
So, you can understand that the marketing strategies built on insights pulled from the processed data are referred to Data-Driven Marketing. This data is purely extracted from customer engagement and interaction related to specific products and services. The goal of data-driven marketing is to optimize the marketing process by leveraging data to gain deeper insights into what your customer exactly demands.
Evolution of Data-Driven Marketing
- Teradata the biggest name in data analytics brought data-driven marketing concept into the limelight. Well, it’s started a few years ago but now getting a high pace.
- Under this customer information has been used for optimal and targeted media buying and promotions. It is one of the drastic transformational changes in digital marketing.
- Since its evolution, there is a high rise in quality and quantity of marketing data. Data-driven marketing is giving the answers to the questions such as what, who and where just on the basis of actionable insights.
- But this is true that this approach in marketing requires significantly more optimized media and creative strategy.
How Marketers Have Augmenting Data-Driven Marketing?
Getting the 360-degree view of the customers’ preferences and buying habits depend on the integration of data from different available sources. So now the question arises that what are those sources that are being used by marketers to augment data-driven marketing? Here are your answers:
There are different sources that can be reliable to augment the marketing data. But according to the survey of one of the leading IT Giants, there are top 3 sources that marketers generally used that are:
- CRM is customer relationship management that refers to practices and strategies used to manage and analyze customer interactions.
- So, the data which is derived from throughout the customer lifecycle is called CRM Data. It gives you a clear overview of the dashboards of your customers’ previous history with your product, their orders, issues, buying behavior and their preferences.
- Thus, the marketers and other decision-makers can use this data to improve customer service relationships and derive sales growth. Take a quick look at the image above it will give an idea of how CRM data works.
- Real-time data reshape the way marketers communicate with customers. The data that capture the information about customers’ buying trends that occur in the real world is the real-time data.
- For example, if a customer scrolls down a product on an online store and then a company representative immediately send the lucrative offers relating to that product via email or SMS to the customer to induce him/her to buy the product.
- This is the real-time data where marketers can act immediately. You can see in the above image how real-time data extracted through API.
Integrating Analytics Across Channels
In integrating analytics multiple sets of data from different channels is linked our housed together to provide marketing data that marketers can further use. The channels can be email marketing, social media, paid search, referral and even direct call to customers. When they all integrate together they provide very important insights about the paths that the customer takes to buy the product. This helps marketers to take decisions on the basis of valuable information.
The other channels are also used but still, they are not that popularized and easy as well. These three are marketers used to get the customer data to work upon their insights for data-driven marketing strategies.
With no doubt, data-driven marketing is the future. It enables marketers and companies to target, engage and connect with their potential and existing customers effectively. Below is a recently reviewed data for you by a leading business magazine on the overall scope of data-driven marketing.
Below data also shows that companies those who are adopting data-driven marketing are more likely to have a competitive advantage and have an increase in their profitability. And they still have an opportunity in emerging marketing strategy.
Benefits of Data-Driven Marketing
So now let’s begin to read some of the important benefits that data processing brought to the marketing and making it so revolutionized:
Good Chances of Leads
When you do data-driven marketing that includes refined data fetched from emails, surveys, social media you will be directly targeting your required customers. This saves your lot of time and money. You have the data with you and you know that you no need to scratch your head unnecessarily anywhere else. You can easily reach to the scattered customers with emails, calls, SMS, social media campaigns and more. In this way, you will get the right kind of leads, from the right kind of customers that you can easily convert them into sales. With well-defined data all, you need to take out your arrow and shoot on your target to succeed.
Target the Right Audience
Targeting your right audience is the primary benefit of data-driven marketing. Companies use customer insights that are derived from data processing to segregate their customers accordingly. This makes marketing segmentation more accurate. The analytics are helpful to find out the traits of their customers, their creditworthiness, their preferences and more. In this way, companies can frame their product-pricing policies to give customers what they want and boost their sales.
Improved Customer Services
Database Marketing is helpful for the companies to improve their services as well. Customer database consists of the data related to the buying behavior of customers and their feedback. These insights help companies to get to know the factors where they are lacking. You can take the measures and frame the strategies that are more likable by the customers. It is the best way to enhance the quality of your relationships with your key customers and turn them into your loyal customers.
Prompt and Prudent Decisions
The marketing information first collected, processed and analyzed by the experts then interpreted in various formats. So if you are an entrepreneur or decision maker or a marketer then you can understand the consumer’s pain points, their purchase preferences, and shopping habits. You’ll also come to know what is good and bad for your product or service so that you can take the facts-driven decision instantly on the basis of these real-time insights. This will result in a better understanding of your customers. Paying close attention to the engagement and conversion metrics can help you to tune your decision strategy.
Email Marketing becomes More Responsive
Being a Marketer you can use data insights to reach to your clients easily. Shooting bulk emails and SMS to only targeted customers become very easy. You will get the desired response from them within a quick span of time this makes email marketing more responsive. This is such a time-saving activity that is all possible with the help of a database. This will give you more leads and more chances of conversions.
Identifying Channel Deficiencies
You would have no idea what is working for you and what is not until you evaluate the success of your marketing program. This is possible only once you have the data related to your product’s sales, customer satisfaction analysis, customer preference analysis, profit analysis and more. You can hire outsourcing agencies they fetch processed data through different channels related to your products or services. It shows you the graphs of every aspect and identifying the channel of your deficiencies. So, that you can frame your policies accordingly and overcome it. Majority of them believe that data-driven marketing makes them more customer-centric company.
Market Research Form Processing is a Boon
Market research form processing is a boon for marketing. It extracts, recognize, processed and serve marketing data with the most accurate results and actionable insights. With form processing, a launch of a new product in a market is no more a daunting task. You can easily get the insights about your competitor’s products, their advertisement campaigns, and pricing. It will help you to decide the variances of your new product accordingly. Thus, it ensures that your marketing planning is on the right path and gives you a successful product launch and correct feedback as well.
The data-driven approach in marketing is saving lots of time of the marketers. Now on the basis of processed and relevant data of the customers, marketers can approach direct to the potential customers. They do not need to wait so long for the response from the customers. They can hit the right market with the right kind of product and boost the sales. It becomes a time-saving approach where marketers can use their spare time in other promotional activities.
Right & Attractive Campaigns
With the image, forms and order processing, marketers can get the data of the customers easily. They analyze what the customers prefer and what they want to buy actually. They can also study what kinds of campaigns attract most of the customers. So instead of wasting their time in the bulk of campaigns, they can plan different promotional campaigns accordingly that actually yield good ROI for them.
Better Understanding of Global Market
After data-driven marketing, it becomes easy for marketers to understand the global market and competitors. They can get the deep insights about the customers’ behavior, taste, preferences, and creditworthiness. Thus, to hit the global market with the help of refined information marketers plan their strategies. They can easily do the SWOT analysis on the basis of this data that enables them to stand and win amongst global competitors.
Continuous Strategy Improvement
Data processing brought new hopes in marketing. It gives you a continuous strategy improvement in marketing to move towards better results. Optimization of marketing channels with updated information is one of the important improvements in data-driven marketing. You can also improve the mainstream strategy and evaluate it as per latest trends according to customers’ behavior and preferences. Overall your business can generate immense productivity through a data-driven marketing.
Leveraging Competitors’ Insights
As a successful marketer, marketing will be fruitful for you when you already know what your competitors are hatching. You already know their product, pricing, promotional insights through data processing. This will make you win half of the battle. You have all the required data to frame the plan to hit the market with a bang and persuade your competitors’ customers towards you. You can play with pricing and promotional campaigns and make them more lucrative.
Processed customer data help marketers to target their customers with personalization. For this, they do personalized communication with them to increases the chances of their conversions. Data-driven marketing always has a powerful and active database that helps marketers to influence a large number of potential prospects. Hence, this data helps marketers significantly to create effective marketing strategies according to the likes and dislikes of the customers. This brings the customer-centric approach to the marketing that is a proven tactic to increase the number of customers.
Optimization of Marketing Channels
With data-driven insights, you’ll understand what type of customers like your product, how you can directly approach them and how you can turn them into conversion. For multi-level marketing channels:
- You can optimize the significant marketing channels on the basis of this information to provide a better customer experience.
- Your website is the most influencing channel that will take you to your maximum number of customers. Furthermore, you should optimize your website’s content according to the new data time-to-time.
- You should also use social media insights, emails and mobiles as well that also give you a lot of understanding about your customer segment to reach the right targeted audience.
Increase Brand Awareness
Data processing gives you the most relevant and refined data about new challenges that your brand is facing. Analysing the processed data will help you to improve the performance of your marketing activities. This will give you the results that show where you are performing well and what the areas you are lacking are. The comparative study of data also shows how your competitors are using different media to increase their brand awareness. So you can also create a big noise about your brand on different channels to enhance your brand.
Marketing has evolved immensely over the past few years. It is like a melting pot for every business to generate leads and increase the brand presence all over the globe. The level of competition in the digital world has reached its threshold that has increased the pressure on marketers to generate more leads. They are now keen to discover new and innovative techniques of marketing to focus on the right segment of customers.
Data-driven marketing makes it possible for them to attract the targeted customers, with the products and pricing what they are looking for. Hence, the actionable insights help marketers, management professionals, and decision-makers to understand the emerging trends of this data-driven world and plan their marketing strategy accordingly.