Why Data-driven Marketing is Important for Your Business
Marketers have begun to employ personalised methods to increase revenue—and data-driven campaigns proved successful by increasing ROI on marketing spend more than five times.
Marketing has evolved so much through the years that it now seems both novel and familiar even to veterans in the field. You’d be remiss to think today that marketing simply means creating campaigns and crunching numbers—even data-driven marketing has gone past monitoring website conversion rates and cost per click.
With the multitude of data and tools available today, there really is no excuse to not know what your customers are saying and what the market demands.
Data has all but eliminated the guesswork when it comes to what your customers want, and technology has allowed marketers to listen in on their customers at every stage of the customer journey. Voice of Customer (VoC) data is one of the common methods used to put oneself in the customers’ shoes and see what they see.
Data-driven marketing helps develop campaigns that address customer needs and wants. VoC data provides the information you need to determine what works so you can focus marketing efforts on that.
Main Benefits of Data-driven Marketing
Customers demand a personalised experience when interacting with a brand despite the fact that they use a multitude of channels when doing so. In response, marketers have begun to employ personalized methods to increase revenue—and data-driven campaigns proved successful by increasing ROI on marketing spend more than five times.
Below are a few reasons why you should shift your marketing approach to a data-driven one.
It helps you reach the right people.
Strategy is still important in today’s volatile marketing landscape; a report from Strategy& shows that companies that had leaders committed to a strategy were more profitable than their peers. In crafting a go-to-market (GTM) strategy, creating the best product messaging and ensuring that your product is the best among your competitors won’t help if you’re talking to the wrong people.
With a data-driven GTM strategy, however, you ensure that your message gets across to the right audience—an audience that would want your product and, therefore, convert.
It helps create personalised experiences.
Market segmentation becomes easier when your marketing strategy is backed by data. The right kind of data allows you to tailor campaigns that speak to your audience, regardless of how niche it may be.
A 2017 study from experience optimization platform Monetate shows that marketers who exceeded ROI projections had dedicated a budget to personalisation techniques 83% of the time.
It helps you monitor performance.
Since you have access to end-to-end customer data, you can regularly monitor performance and make adjustments as necessary. Data-driven marketing helps provide insight on customer wants, habits, and behavior, which are all important factors in determining what value your product should be delivering.
This is why ensuring that you have the right data is key in monitoring and improving performance. VoC data should be a pillar of marketing data, and you can get this via customer surveys, interviews, focus group discussions, social listening, and Net Promoter Score (NPS).
It helps you choose the right channels.
Whether you’re an omnichannel or pure-play ecommerce business, your messaging should be crafted according to your audience and the value you want to create. What many marketers forget is that communicating with customers is also dependent on the channel. Even online customers can use several channels—desktop, laptop, smartphone, tablet, or any other mobile device. Data will help you determine which channel to tap at a given time and how to craft and modify your messaging accordingly.
It provides a solid basis for business decisions.
Learning how your customers shop and behave during all stages of the customer journey is vital if you want to make sound business decisions. Collecting the right data will show you what market to address, what message you should send, what media to use, and what improvements you should make to your product. Ensuring that your customers get a pleasant experience each time will keep them coming back and transform them into promoters of your brand.
Data-driven marketing has reached a stage where it’s ripe enough to affect businesses and industries significantly. Data has become a vital marketing tool, providing the power to determine potential customer behavior and how to adapt to a constantly changing customer landscape.