At this point, we can all surely recognize the importance of working with trustworthy data. We are not just talking about quantity here, what’s relevant is having actionable information that will help us move our business decisions. This is especially true when it comes to marketing, a field that is greatly influenced by consumer behavior. In this article, we’ll take a closer look at what data-driven marketing really is, how it can help your business, and why you should consider it as part of your overall strategy.
Data-Driven Marketing is the set of decisions and strategies created after analyzing Big Data from consumers taken from first-party (clients) and third-party sources (market and industry reports). In other words, Data-Driven Marketing is a strategy that organizes, processes and uses the vast amount of information you have about your clients to obtain valuable insights about them. Its objective is to understand even the smallest detail of consumer behavior in order to design more precise and results-oriented digital marketing actions. Thus, Data-Driven Marketing only stores the data relevant to a business in an organized way with the purpose of guiding Digital Marketing actions to meet the increasingly complex needs of customers and retain them.
1. Become customer-oriented Considering that 43% of marketers say their company has not embraced a customer-centric culture, companies can take advantage of the growing body of information to create a memorable experience for their users. It turns out that Data-Driven Marketing is inherently a customer-oriented strategy. Given that all the information with which decisions are made comes directly from customers, it indicates what to do to personalize content, define communication channels, launch loyalty campaigns and, ultimately, satisfy customers.
2. Boost ROI By understanding the needs and pains of your Buyer Persona, you can plan and execute more focused marketing actions. This will prevent you from wasting your resources on actions that do not have a strategic foundation. Consequently, by making efficient use of your resources, you optimize your results and earn a higher ROI. Having a solid base to objectively identify the strengths and weaknesses of your strategy allows you to make the necessary adjustments to reach your customers at the right time and with the right message.
3. Streamline the decision-making process By avoiding relying on such subjective variables as intuition or experience, marketing teams can save a lot of discussion time by trusting data and letting it guide decisions.
4. Predict the results of your marketing campaigns When this is integrated with other developments such as Machine Learning, past and present trends can be used to predict consumer behavior through predictive models.
5. Identify the appropriate content to achieve greater visibility Data also shows you your most visited content and your most effective channels. If you use this information, you can find a pattern in the messages that are most interesting and valuable to your customers. You can then direct your entire content marketing strategy towards the topics of your interest and distribute them in the channels chosen by your users to expand their reach and attract new audiences. Data-Driven Marketing, together with Content Marketing and SEO, allows you to have a clearer vision about the types of content preferred by your users (blog posts, infographics, ebooks, video, interactive content), relevant topics and even the ideal posting frequency.
As we explained above, it is important to know that the benefits of data-driven marketing, far beyond the increase in sales of your company, are perceived on the customer's side. When you know your target audience, you can only reach those who are truly interested in what your business offers. This leads high-performance marketing teams to drive consumer data to develop that 360-degree view of the target audience. This, in turn, allows for the creation of personalized campaigns according to the customer journey, which naturally leads to better results. Through collecting and analyzing the right data, marketing teams can target specific consumer behaviors - for example, where and when they use social media or even what types of content they react to - and use that information to be sure that your product has a chance to reach them.
At Rootstack, we can help you take advantage of your data by putting together an effective data science strategy that nurtures machine learning and business intelligence capabilities. Let’s jumpstart your journey today!