Everybody around you is talking about data-driven marketing. The marketing head whom you report to, the CEO who shoves down a report you’ve already read a month ago; the Marketing Guru, who gives you an over-the-top explanation, and your competitors, who endorse its significance but are themselves stuck in a loop.
At the top of it, you have your own reservations around it.
Because as easy as it may sound, data-driven marketing is still in its nascent stages in the Indian market and has witnessed anxious reception leading to sluggish growth. Whereas on the other hand, the global adaption of data-driven marketing approach has seen a rapid development where marketers are able to implement their marketing strategies effectively.
Data-driven marketing, as any layman would explain, refers to the marketing insights and decisions that arise from the analysis of data about or from customers. It helps the marketers in bringing the data together, translate it, classify it, store it, and eventually leverage it to achieve desired results and achieve better RoI for their marketing efforts.
Below mentioned are some benefits of data-driven marketing, helping marketers to optimize their marketing efforts in the age of an empowered consumer, and big data –
Benefits of data-driven marketing
1. Target and focus on the right audience
Make marketing relevant –In today’s cluttered marketing landscape, reaching the right audience is not sufficient to drive engagements and revenue. Reaching the right audience at the right time with the right message has become necessary to drive relevant engagement and meaningful revenue. In order to achieve such precision, marketers can drive their marketing through Data and deeply understand different user profiles and initiate interest-based communication with them.
2. Optimize customer experience and buying process
A typical marketing life-cycle from awareness to conversion has seen rapid modification due to the introduction of diverse marketing channels and platforms. Data-driven marketing enables the marketers to practice dynamic personalization across their customers’ buying journey, i.e. determining the key points in user journey and attaining visibility across these till the final purchase.
3. Scale across different marketing channels
Versatility is the key to drive meaningful conversations across multiple marketing channels available today to marketers. And thus, a data-driven approach provides intelligence on how individuals prefer to communicate on each platform.A marketer can easily gauge on how one particular customer responds to deals and offers through social media. And how another customer prefers e-mail for customer service requests, and most frequently responds to coupons and offers over e-mail. Organizations can thus introduce a data-driven approach to reach individuals in the most effective way possible and garner positive responses.
4. Product pricing strategies
Marketers rarely consider product pricing as a tactic to drive Marketing ROI. However, pricing when linked to organized data can significantly improve a company’s bottom line.The key is to vary product prices based on customers, market conditions, supply demand economics, competition, etc. These parameters need to work together to arrive at right price points to justify stakeholder’s interaction with the product.
A full-proof marketing data bank can fuel business’s potential to explore different pricing strategies which suit its product suite.
5. Enhanced product development
Data-driven marketing gives you improved and refined insights of your audience that decreases the rate of product failure. This not only helps the marketers in strategizing their marketing campaigns but also assists the operations and technical department in constantly improving and updating the product.
6. Effective Marketing Automation
Automating your marketing tasks in absence of right data and without any consideration of buyer behavior and preferences would only lead to automating inefficiencies. Therefore, the amalgamation of data-driven approach and automation creates an effective way to collect, sort, and gain insight from thousand of data points about campaigns, channels, users, and products and services.
Marketing Automation is thus more rewarding when combined with Big Data. It uses big data and analytics to predict the right action to take at any time and would allow marketers to create a user experience that puts the user in the driver’s seat.
The future ahead –
69% of marketers plan to increase their budgets for data-driven marketing in the year ahead – GDMA
How to introduce data-driven marketing?
Data is omnipresent. However, picking the right data and utilizing it effectively makes a significant difference in today’s complex marketing ecosystem. In next chapter, we would be discussing the role of Data Management Platforms (DMP) – a platform which helps marketers to introduce a data-driven approach to their marketing efforts and helps to achieve disproportionate ROI.