Data-Driven Marketing Vs Traditional Marketing
Data-Driven Marketing is the approach of using data to make strategic marketing decisions for campaigns, creative assets, and more to ensure all marketing efforts are relevant to your target audience. The data collected can then be used to predict customer needs, desires, and future behaviors. With the right data driven strategies, your marketing campaigns will speak directly to your customers, build loyalty and trust, and improve your return on investment (ROI).
Benefits of Data-Driven Marketing
Based on research from Forbes, the pay off from using Data-Driven Marketing is critical as it enhances customer loyalty, improves customer satisfaction, and helps brands acquire more customers. Here are more benefits of using Data-Driven Marketing:
Gaining Clarity About Your Audience
Through data, businesses learn more about their customers. This allows you to make better business decisions and improve the ability to predict customer behavior, resulting in marketing campaigns that are guaranteed to reach customers.
Building Connections With Your Customers
Using data, the marketing team can build better connections with your customers at scale and in addition, use that information to fuel their new customer acquisition efforts. Leveraged adeptly, companies can provide tailored experiences through real time campaign data that can be adjusted to meet a customer’s engagement and expectations. This is important as studies have shown that customers are frustrated with irrelevant content and won’t consider an offer unless it is personalized. Data is crucial as it delivers a holistic view of your audience by identifying triggers and pain points while individual customer info enriches your brand’s communication with them. In fact, businesses that personalize customer experiences have 5 to 8 times higher ROI from their marketing efforts.
Better Attribution for Spend Optimization
The combination of Data-Driven Marketing with analytics tools allow you to find which portion of your advertising budget has the greatest impact on brand awareness or conversions. By evaluating customer journeys using attribution models, you can determine what works and allocate your budget accordingly.
Challenges of Data-Driven Marketing
Despite the many benefits of Data-Driven Marketing, 81% of marketers consider the implementation of data driven strategies to be very complicated. Implementing Data-Driven Marketing strategies can take a lot of time and resources. Here are some of the challenges many face:
Many feel overwhelmed by the idea of collecting customer information due to the overabundance of data. With the availability of various social media platforms, softwares, and other tools that provide insights about customer interactions, it can be difficult to know where to start especially when target group interests change quickly. Businesses also need to learn to avoid collecting poor quality data and being invasive.
With all the data collected, pulled, and updated, comes the next step of data analysis. After spending all the time and effort on it, there are very few businesses that store their data in one place. Instead, many have it distributed between departments, teams, and locations. This makes it difficult to provide a single customer view, thus limiting the marketing team’s ability to gain full insight and maximize the potential of the data.
Data-Driven Marketing Strategies
Today, Data-Driven Marketing is all about delivering the right message at the right time. Even with the proper technology and talent in place, it can be difficult to know where and how to start. Marketing teams should have a detailed plan or partner with an agency that serves as a guide throughout the entire process. At DDM Generation, our team of experts ensure that your business is following the best current practices to make the most out of your data and incorporate it into your marketing efforts. Here are some of the steps we take to ensure that you achieve your Data-Driven Marketing goals:
Collecting The Right Data
The success of your marketing campaigns depends on your customer data. We recognize the importance of data that correctly reflects your target market. To collect accurate data, we conduct research, build buyer personas, and share the information with your team.
Managing Data and Resource Allocation
Data management is critical in Data-Driven Marketing. Constantly expanding and evolving, we compile and analyze your customer data and evaluate opportunities to save you time, money, and other resources.
In your target audience, there are different customer groups based on several variables such as location, age, gender, preferences, and more. Our team can help your company to achieve personalized targeted messages for each group. This is especially beneficial if your business has different product categories or are based in different locations.
Retargeting is a method to keep your brand at the forefront of your potential buyers’ minds. When they browse for specific products on your website, strategies such as abandoned cart email marketing or social media advertising helps your brand to resurface those products to them.
In Data-Driven Marketing, most if not all content is created with the customer in mind. Without customer data, there is a high possibility that the content may be irrelevant to your customer. Using customer data, all content should be optimized starting from keyword research.
Customer data is useful in all departments. Using a customer data platform (CDP), we compile all the data to create customer profiles that can be useful for everyone in your company. By focusing your sales, support, and marketing services around the CDP, all staff are working with the same data to achieve the same goals and customer experience.
Collaborating With DDM Generation
DDM Generation offers a unique partnership by filling in the gaps in your business. A digital marketing company powered by data, we help to structure, scale, and manage paid digital media programs. Some of our services include: