What Does it Mean to Be Data-Driven in 2019?
Data-driven marketing is one of they key topics in marketing right now. Since data can be applied to marketing in so many ways, it can be difficult to know what data-driven marketing actually means to marketers and how they use data to improve performance.
What is Data-Driven Marketing?
Data-driven marketing can be described as the approach of optimizing brand communications based on customer information. Data-driven marketers will use customer information to predict their needs, wants and future behaviors. This insight helps to develop personalized campaigns that deliver the highest possible return on investment.
How Does Data-Driven Marketing Differ to Traditional Marketing?
Marketing has always been focused on two simple objectives; First, uncover the customer’s needs and wants. Second, use that insight to deliver what the customer wants to buy. This process translates to getting an in-depth understanding of the target audience, identifying and anticipating the customers needs and creating strategies to deliver solutions to the customers problems.
In contrast, data-driven marketing gives marketers the opportunity to connect with customers at the right time. And with the right offering. The benefits of using data go way beyond improved communications. Modern marketers use customer insights to personalize the customer’s experience, target well defined and segmented audiences, develop strong lead generation strategies and measure and improve their strategies in real-time.
But How Does Data-Driven Marketing Affect Business Performance?
The payoff from data focused efforts can be significant. Data-driven marketing leads to greater customer loyalty, it contributes to the acquisition of more new customers, and generates increased customer satisfaction and more.
How Hard is it to Implement a Data-Driven Marketing Strategy?
We’ve established that a data-driven marketing strategy is pretty much essential to the success of your organization but what is that makes the implementation so difficult?
#1 – Gathering the Data
With the abundance of information readily available to us, it can be quite overwhelming figuring out where to start. You most likely have all of this data already but it’s not easy to work with mostly isolated data, which brings onto challenge #2.
#2 – Getting the Data Together
To benefit from data, it needs to be as clean as possible. If data is not captured in real-time, then it must be reviewed and updated regularly. Pulling and updating data regularly can be a tedious task at the best of times but that’s where you need a marketing dashboard. Data visualization is one solution that allows you to aggregate and display data in an easy to understand fashion.
#3 – Storing Data in One Place
Data can often be distributed between many teams, departments and locations, making it more difficult to effectively deploy a data-driven marketing strategy. The main challenge with dispersed data is that it makes it harder to provide a single customer view. This limits your ability to run detailed reports and turn your data into insight.
#4 – Tracking the Right Metrics
To ensure your data-driven marketing strategy is effective, you need to measure it at multiple levels. We’re not just talking about the product or channel levels here. A cross-team solution can be highly beneficial as it has the ability to meet specific needs from multiple departments. Get started by deciding what outcomes to measure and how to drive the measurement conversation throughout your organization.
Long story short, data-driven marketing isn’t going away anytime soon and one way to stay on top of all the changes happening in your industry is to attend a conference. Data & AI Marketing Toronto will bring together over 60 expert marketers that are leveraging data to drive success in their organizations. Register now.