Data-driven marketing is a set of techniques and tactics that leverages massive amounts of data to create effective marketing processes, targeting specific demographics and user groups at an individual level. This data can provide fantastic insights into consumer behavior, and taking advantage of it can be of vital importance to your company. Data is increasingly important for elite marketers and has the potential to become the most valuable resource in marketing. A survey by Forbes recently discovered that 88% of marketers use third parties to extract big data for the purpose of marketing.
Introduction to data driven marketing
Before we proceed any further into this article, it would be good to start by defining exactly what data-driven marketing is. Data-driven marketing is the practice of gathering and analyzing data to perform precise marketing actions. In this context, ‘data’ refers to the tangible information you have available to you, such as customers’ purchasing habits, customer support calls and other information you have collected over the years. The concept of data-driven marketing is not new, though it has taken on new meanings with the advancement of technology and the rapid growth of the digital marketing industry. The most basic definition of data-driven marketing is ‘the use of information for the purpose of making decisions and making predictions based on that data.
What is data-driven marketing?
Data-driven marketing has been employed for quite some time, but has only been publicly embraced as an umbrella term by marketers at this point. During this research process we’ve compiled a set of digital marketing techniques that can help you to improve your current strategies. How does data-driven marketing help me? As digital marketing has become one of the most significant and widely used tactics in the world of marketing, the demand for ever more data on its users has continued to grow. Data-driven marketing can be used to glean information about your customers, who they are, what they are interested in, and how you can improve your marketing to more effectively target them. There are two main benefits of using data to drive marketing efforts.
How can you employ a data driven approach to digital marketing?
Most of us are more familiar with the idea of a marketing campaign or a campaign agency, but what does a data-driven campaign look like? First off, what do you need to collect to be successful? The first thing is the data itself. Most digital marketers are familiar with the idea of tracking, tracking, and then tracking again. This may seem like a painful process, but with a little forethought and precision it can be done in an automated way. Even if your company is not large enough for a large data analysis, or you simply want to keep up with trends, you can still create tracking tools that allow you to obtain data that can help you as you make decisions regarding your marketing campaigns. Secondly, you need to understand how people respond to the product or service you provide.
How do you store and use your data?
Evolving technology has changed the way in which data is stored and managed. With companies pushing the boundaries of how their data is harvested and stored, it can be difficult to tell where the line between the right and wrong is drawn. The first step to a successful data-driven marketing strategy is to seek out trusted partners who will be able to combine your organization’s information with customer data that is already in their possession. The goal of this approach is to source data that will allow you to measure and analyze your customers’ behaviors and preferences. You should then use these insights to create tailored and targeted advertising and marketing campaigns, to the end that the data you generate is actionable and will lead to increased sales.
How does this kind of data-driven approach provide benefits for marketers?
According to an article in Business Insider, data-driven marketing can help in many ways. One of the primary advantages is the ability to analyze traffic that comes from customers using a website and infer important consumer patterns that could be useful for your company in the long run. This type of profiling also allows you to have a higher estimation about customer behavior. For example, you can gather data on which types of traffic generates the best conversions, and use these insights to improve your company’s online marketing strategy. Furthermore, data-driven marketing allows you to reach potential customers and current customers at the perfect time.
The world of digital marketing is rapidly changing as the role of the web becomes more dominant. It is imperative for companies to adapt to this new world. This requires great levels of research and understanding of the marketplace in order to help establish a marketing strategy that works. Data-driven marketing can be the difference between a great company and one that gets left behind. Make the switch to data-driven marketing and reap the rewards.