Marketing keeps evolving to counter the new challenges of acquiring customers, targeting specific customer-base, or to give the brand a new image.
Data-driven marketing is the method of relying on data acquired from customers, market insights, and research to lead a marketing campaign. Some experts opine that “Data-driven marketing is the strategy of using customer information for optimal and targeted media buying and creative messaging.”
With the rise in the use of the internet, marketing saw a new prospect i.e. digital marketing. This form of marketing relies heavily on the data to create, manage, and analyze marketing goals.
Data-Driven marketing relies on two aspects, Predictive Analysis research and Big Data. Acquiring and analyzing actionable data to predict the result improves any marketing campaigns.
The world produces an astounding 2.5 exabytes every day. For that data to be useful, though, you need to have a plan for turning it into insights to improve your marketing campaigns. ~Lotame.com
According to Marketing Gurus, every company should start optimizing their marketing approach and fill the gaps to attain the maximum best results.
Marketing Gurus highlight the following points for effective marketing strategies
- Improve targeting of marketing offers
- Obtain a 360-degree view of the customer
- Access internal unstructured data
- Access social media data
- Apply behavior scoring to customer data
- Provide offers customized to individuals
- Predictive model used to drive decisions continuously in real-time
Some of the strategies for Data Driven Marketing
STEP 1: Set a Well-Defined Goal
What is a successful goal for you? It can either be the increase of email list up to 10,000 customers, 5,000 units of sale, 1 million subscribers, 10 million website visits, etc. As with any successful marketing campaign, you first need to determine what does success means to you.
The realistic goals that you set early in the process can help guide your marketing campaign and team without the need to overdo anything. The smartest strategy for running any successful marketing campaign is to set a realistic goal.
Marketing Goals are well-defined by
- Their specific purpose
- If you're goals are measurable such as the number of sales, website traffic, email list, subscribers, etc. Quantifiable goals are always measurable.
- Set an ideal goal that is achievable. You can always set another goal after you've completed the previous.
- Relevance of the goal answers the 'Why' of your marketing campaign.
- Set a deadline for achieving your goal
STEP 2: Have a Clear Understanding of Your Target Audience
Understand who your audience is! To accomplish your objectives, you must find your niche audience. Since no business can afford to target everyone with its marketing, you need to narrow down your scope to find the group of people most likely to take the action you need them to.
For example, you must ascertain what age group of people or an economic-background is more likely to purchase a kitchen counter-top. A householder between the age of 25 and 50 is more likely to purchase a kitchen counter-top. This will help you ascertain your target audience.
The things that determine the target audience are as follows:
The demographical data stands for age, gender, marital status, education level, income level, location, and geography of the customer. It’s also helpful to ascertain the psychographic requirement such as their interests, values, habits, and opinions to help personalize the marketing campaign.
The behavior stands for the psychological parameter of the customer. Studying their behaviors is likely to boost the marketing campaign. For this, you can study their past purchases and purchase history to determine their behavior.
What motivates your customer to buy something? If you know about their goals, you’ll have a better idea of how you can appeal to them. It helps to personalize your marketing campaign and entice your customers to take immediate decisions.
STEP 3: Line up the Right Data
The availability of data provides great leverage in business advertising, marketing, decision-making, and optimization. A report suggested that Bad data is estimated to be costing the US roughly $3.1 trillion a year.
The availability of the right data can help a great deal to realign your marketing goals and drive marketing campaigns. To get the right kind of data, you would need to accumulate the right channels and personnel such as:
Sales histories – determine what products are the customers buying most
Customer service communications – the feedback about the product, complaints, and referrals
Actions visitors took on your website –what product did they visit the most, when did the customer abandon the shopping cart, etc.
Completed customer surveys – you can ask customers to fill-up surveys to determine their taste, preference, and requirements.
STEP 4: Select Your Marketing Channels
Digital marketing relies on different marketing channels, where some are organic and others are paid. Examples of channels you could include are social media sites, company’s blog, pay-per-click ads, email, search engine, etc. Google Pay per click, and Instagram and Facebook’s sponsored sections bring in the most amount of visitors. But these are paid channels. You should determine your marketing need and work on them.
As most marketers point out, “Go where your customers are.” So start digging into your data and find out what kinds of media your customers are more likely to use.
STEP 5: Keep Track of Your Campaigns
Use performance metrics to identify if your marketing campaign is going in the right direction. A successful data-driven marketing strategy requires continuously collecting Big Data such as customer basic information, purchase history, behavior, economic background, occupation.
This will also help you ascertain what you’re doing is either right or wrong. With the increase in digital metrics such as Google Analytics, SEOMoz, DoubleClick, etc. it has become easy to capture and analyze marketing related data.
The smart strategy for data-driven marketing drives customer acquisition and helps to meet your marketing goals.