How to Utilize Data-Driven Marketing for Your Business

Customer data is now the most reliable source of information. Gone are the days of relying on gut feelings and assumptions. Learn about data-driven marketing, its benefits, and how to use it.

What is Data-Driven Marketing

Data-driven marketing is the approach that focuses on optimizing brand communication deriving from consumer information. Marketers use this information to predict customer needs, desires, and future behaviors; this information can also help create individualized marketing strategies to yield a high return on investments (ROIs).

Whereas traditional marketing uses market studies that are available at the time, makes assumptions about a target audience, and often results in trial and error, data-driven marketing opens a bridge for marketers to connect with customers at the right time, personalize the customer experience, get new customers, hone in on well-defined marketing segments, and most importantly, measure and improve their strategies in real-time.

The Benefits of Data-Driven Marketing

1. Clearer Insight About Target Audience

Information on customers gives marketers a better understanding of their target audience and allows a marketing campaign to guarantee that customers receive the right message at the right time. In addition, they can create campaigns that satisfy their audience.

2. Best Channels for Promotion

Data gathered can serve two functions. The first function is revealing a target audience's preferences. The second function is possibly suggesting what avenues brands should use to engage with an audience as time goes on. This information can also help position a message where the target audience will shift over time.

3. Personalization

With customer data, marketers can comprehensively understand their target audience, which can be used to identify potential triggers for potential customers. Customer information is then used to strengthen communication between brands and their customers.

How to Make a Strategy With the Data

Now that you know what data-driven marketing is and its benefits, it's time to put that information to good use. Read below for instructions on how to use this information to your advantage.

Step 1: Create an Objective

Here, you should create a clear goal on what you want this data to do for you. Your goal will serve as a guide through the following steps. Furthermore, you will know the most important information and where to get it.

Step 2: Gathering Data

After selecting your goal, it is time to figure out what information must be collected. Referring to objectives can help you contemplate what information is necessary, and you can then pinpoint where you can access said data.

Step 3: Collecting and Organizing Data

This is two steps condensed into one. Before collecting data, you must decide on a data platform to organize your data. Afterward, you can use it to start collecting your data.

Step 4: Creating a Team

At this point, it would benefit you to build a team to analyze and respond to the data collected.

Step 5: Organizational Buy-In

To incorporate the data-driven approach, you may need permission from stakeholders.

Step 6: Measuring and Tracking Progress

Here, you must create a process for monitoring the campaign's performance. This process will be required for better analysis and reporting progress to stakeholders.

Conclusion

Data Marketing is a vast field that can be explored. With the correct data combined with the right goals, data marketers can do anything they desire to do.