Customers have started demanding personalized experiences and with no surprise, almost 66% of marketers are personalizing their communications based on consumer data. The data-driven model of marketing isn’t just about what’s right for companies looking to expand, but it’s more focused on what’s right for customers. After all, customers are in the driving seat now.
As a modern-day business, it’s about time you get involved with data-driven marketing before you get left in the past. Let’s explore the data-driven structure of marketing and its benefits and understand the latest data-driven strategy trends that no company should ignore.
What is Data-Driven Marketing?
Data-driven marketing is the process that helps marketers to understand their customers, and learn about new market trends by analyzing data gathered from various industry sources. These data are then changed into actionable decisions.
The main objective of data-driven marketing is to pull marketing procedures and strategies to discuss the changing trends and the unique demands of target customers by leveraging data to get a deeper understanding of what consumers want. The company needs to understand the who, what, where, when, why, and how customers are engaging with your marketing efforts, so you can make better business decisions. That’s why a data-driven framework is important for your marketing strategies, helping you make well-informed decisions.
Why is Data-Driven is so important?
Data-driven marketing is all about collecting information on your customers, then using that information to guide your marketing efforts. There are three reasons why we think that companies should start using Data-Driven marketing.
1- Brand reach to the right people
When your sales reps send messages to the customers, not every customer is going to buy your product immediately. Unless you are selling a time machine, the company should lower their expectations. Studies show the average conversion rate for a sales landing page is around 2.35%. Data helps you tailor your brand messaging so it is more relevant for the audience who see it. That way, you can hope to convert more people.
2- Monitor performance
By using consumer data, you can gather insights on a range of behaviors and interests. Then, you can make measured adjustments to your strategy and measure the impact.
One potential warning here is that you need to be sure you are working with high-quality data. More than 50% of companies fear poor-quality data is hampering their efforts in data-driven marketing.
3- Connect with customers
Reaching to the right people is the most important part of any marketing but connecting on the right channel is yet another challenge. Today, people use multiple mediums to go online, with the average shopper using six channels during the customer journey. Data-driven marketing allows companies to present a united brand message that engages prospects on multiple digital platforms. Therefore, you will be ready to respond and serve customers when they’re ready, on the channel they prefer.
An extensive study by Invespcro reflects the stunning growth of data, and its importance in modern marketing:
- 64% of executives agree data-driven marketing is vital in the current economy.
- 88% of marketers use data from third-parties to learn more about their customers.
Data-driven marketing is here to stay. The challenge that many small businesses face is getting started. You can’t stick to the traditional way of marketing, it’s time to get on board.
Let’s take a look at the most recent data-driven marketing trends which can take your business to the next level.
1- Data onboarding
One of the most under-the-table data analytics trends is data onboarding. This is when you take offline data about your customers and transfer them to an online environment. Once you do that, you can analyze it and put it to good use for your marketing needs. You can use data onboarding to connect offline records with online users, effectively finding people online and leveraging the offline data you have gathered to hone your marketing. This enables you to create very targeted ads, facilitating a memorable 1:1 experience for people.
2- Various channel
Gone are the days when marketers focus only on one channel. Now, you must recognize that people use multiple devices, websites, mediums, and methods for searching and shopping. By marketing in a different channel, your brand will establish a strong presence everywhere your audience is, both online and offline.
For example, a fashion retailer merged his online and offline channels to simplify the shopping experience. People can come into the shop and talk to sales associates who have iPads, which are shopping portals and mobile point-of-sale systems. This enables:
- Up-to-date product information and quick answers.
- Instant online orders for home delivery when an item is out-of-stock.
- The ability to check out from anywhere in the store!
3- Mobile Applications
If we look at today’s marketing campaign, the company wants to reach their customer in every possible way which includes-
- Social media posts
- Television commercials
- Google Ads
We have already told you that using various channels can help you in gaining more sales. One of the most effective ways to reach your audience through all the noise is by using mobile apps. Reports by Statista suggest that there will be 6.95 billion mobile users all over the globe. And, mobile devices generate nearly 50% of the worldwide website traffic.
Isn’t it interesting? It’s better to invest your efforts in trying to engage the vast market of mobile users. The data you can collect from app users offers you a great opportunity in terms of marketing and advertising.
The rise in data-driven marketing has made companies select the right keywords to make their SEO work. In 2020 and beyond, you’ll have to use data-driven SEO tools like Ubersuggest to exceed your competition. These tools can help you find out:
- The average domain score of sites ranking in the top 10 for your desired keyword.
- The average number of backlinks of sites ranking in the top 10 for your desired keyword.
- The average word count and readability for websites ranking in the top 10 for your desired keyword.
- The average monthly search volume for your desired keyword.
- Other relevant terms to include in your content.
All of this data can help you make better decisions about selecting the keywords. Plus, you can define the amount of effort needed to promote certain content pieces. For instance, if high volume keywords have lots of backlinks, you’ll perhaps have to do more aggressive backlinking outreach.
5- Data Integrity
As data-driven marketing has risen in popularity, the need for accurate, clean data has also grown. Poor-quality data can misrepresent your data analysis, mislead your team, and cause some pretty disastrous decisions. According to Gartner, the average financial impact of poor data quality on businesses is $9.7 million per year.
On the one hand, data gives companies the chance to form stronger relationships with people, spreading brand awareness, and improving your reputation. But if the data isn’t high-quality, it may do more harm than good. You should ensure you use reliable sources to mine your data and perform regular analysis and cleaning to keep everything current and accurate.
Data-driven marketing is popular because of its established ability to maximize ROI. It helps you increase the efficiency of your marketing efforts by decreasing excessive spending and enhancing resource allocation. Ultimately, it empowers you, as a brand, to deliver a more customer-centric approach to marketing. Today, data-driven marketing is easy to implement because of the availability of easy-to-use analytics tools that do much of the heavy lifting.
FunnL has been successfully generating sales qualified meetings and has generated more than 10,000 leads for about 100 companies. Keeping the sales time on point with the prospective leads and making sure the engagement level is high. Contact us for generating leads!