10 years ago, only a handful of tech-savvy companies were using data-driven marketing strategies. Of course, these companies no doubt found it easy to get ahead of the competition to grab big market share.
These days, however, more and more business leaders are gaining insights from big data and using it to optimize campaigns by personalizing the customer experience.
If you’re new to data-driven marketing and are unsure if it’s something you want to explore, here are some benefits of this approach:
Perhaps the biggest benefit of data-driven marketing is the enhanced ability to create highly-targeted campaigns with personalized messaging. A McKinsey study found that data-driven personalization led to greater ROI on marketing spend. This, combined with optimum delivery time, boosted the overall success of engagement and effectiveness.
2. Easier Marketing Integration
When you leverage data, you can easily extend your reach across multiple channels of communication. Customer insights ensure messaging remains consistent, aligned, and reaches prospects at the right place and the right time!
3. Know What’s Working and What’s Not
Data-driven marketing helps you to identify specific content that is leading prospects through your sales funnel. This helps you determine exactly where your time and budget should be spent.
4. Simple Segmentation
Segmenting prospects based on behavior and action allows you to target consumers more easily. Sift through your data to uncover the most accurate and actionable information.
5. Strike While the Iron’s Hot
With data-driven marketing, you can pre-target consumers. This means you can predict their preferences and tailor your marketing messages while they are still in buying mode. It doesn’t get much more relevant or timely than that!
6. Product Development
If you build it they will come, right? Nope, not unless they want to. You may think you have created the world’s greatest widget, but if no one has want or need of that widget, you’re out of luck and stuck with a warehouse full of useless widgets.
Data-driven marketing greatly reduces product failure rates. When you can truly understand who it is you are serving, you can develop products that serve their specific needs.
Tips for Adopting Data-Driven Marketing
Now that you know the benefits of data-driven marketing, let’s look at some ways you can begin to adopt the strategy:
In order to keep up with what the data is telling you, leverage automation tools, which will allow your marketing strategy to work for you at times when you can’t.
Think of how well a well-oiled machine operates. In our scenario, the oil is data, and it needs to get to all parts of your organization to keep the entire machine running smoothly. Put in place processes that will ensure information can easily be shared across departments and teams.
Spy on the Competition
Data-driven marketing is constantly shifting and evolving. An easy way to stay up-to-date and ‘go with the flow’ is to pay close attention to what your competition is doing. Either follow suit, or don’t do the same things they’re doing if it’s no longer working.
You’ll need to keep an eye on your campaigns and continually measure results. This will help you identify which strategies and data are giving the best results.
Along with predictive and artificial intelligence marketing, data-driven marketing is becoming an essential tool for many business leaders. If you want to supercharge your marketing campaigns and personalize your customers’ experience, consider adopting a data-driven marketing approach.