Data is and will continue to be one of the most important resources we have when it comes to marketing. In just a few years, this resource has developed at rocket speed, and we now talk more than ever about the importance of Big Data.
The large amount of data has become indispensable when discussing modern marketing processes and disciplines, and it plays a major role in the continuous improvement of user experience and resource allocation of marketing campaigns.
Let’s take a closer look at data-driven marketing below.
What does data-driven marketing mean?
Data-driven marketing is a new approach within marketing that focuses on the concrete customer data available to the company.
The purpose is to actively use this information to predict future customer needs, plan campaigns, better understand the target audience, specify segments, etc.
It is often said that data-driven marketing has created a divide between traditional and modern marketing.
Instead of relying on gut feelings or intuition, data-driven marketing is about making decisions based on real data and information, which can help ensure numerous benefits for the customer experience and, therefore, a company’s performance.
What are the benefits of using data-driven marketing?
Data-driven marketing helps ensure a personalized experience for the customer, which can help create long-lasting relationships and significant value for the company.
In a previous post, I described the benefits of the relationship-based approach to marketing and why it’s so important in today’s oversaturated market.
Fundamentally, the benefits of data-driven marketing can be described as follows:
Personalized messages
We are now in a market with tons of opportunities, and consumer attention is naturally drawn to the messages that make sense to them among the crowd.
In other words, personalization is more important than ever to engage customers.
With the help of data, pain points along the customer journey can be detected, where personalized messages can be created to convince consumers that what your company offers is directly relevant to them.
In-depth insight into the target audience
As the name suggests, data-driven marketing offers a wealth of valuable data about consumers, providing valuable insights into consumer behavior patterns.
With this insight, campaigns can be targeted, improving the chances of reaching consumers right where they are, whether it’s on social media campaigns, retargeting ads, or something entirely different.
Improved customer experience
In broad terms, the benefits of data-driven marketing can be boiled down to an improved customer experience.
This takes into account customer data and feedback, which, with the right analysis and subsequent implementation, can help customers feel seen, heard, and understood.
Thus, the company can ensure that it meets consumers’ specific needs and creates a valuable relationship with them.
What pitfalls are there in data-driven marketing?
Data-driven marketing involves significant analysis of the data collected.
It is important to be both objective and critical when approaching this work to avoid pitfalls that can lead to questionable results.
In particular, it’s crucial to keep the following in mind:
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Lack of context: Ignoring external factors that can influence data and lead to misleading analyses.
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Bias in data selection: Focusing only on trends that confirm existing beliefs.
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Interpretation of insufficient data: Making too quick conclusions based on incomplete data.
What are the results of data-driven marketing?
The result of successfully using data-driven marketing is the effect of an improved customer experience.
With satisfied customers, greater customer loyalty is generated, which leads to increased conversion and higher ROI.
There will also be the possibility to better predict future customer behavior and trends, constantly adjusting marketing efforts for the best results.
How to work with data-driven marketing
Before you start actively working with customer data, it is important to set specific goals for what you want to achieve with your analysis.
It can be difficult to know which data you should be looking for unless you have a specific goal for the collection, such as a higher conversion rate, better ROI, greater reach, etc.
With these goals, you can better assess which type of data will help you gain insights into how to reach these objectives.
Platforms that collect data include, for example, Google Analytics, Hotjar, Hubspot, Shopify, etc., depending on the specific type of data needed.
With this data, patterns can be analyzed, future customer behavior predicted, segments identified, A/B testing of campaigns done, etc.
As in any other process, it’s important to always monitor how your campaigns are performing and how they can be adjusted along the way.
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