Why Your Business Should Be Using Data-Driven Marketing
With the current onslaught of content in all aspects of our lives, consumers are becoming increasingly picky about what they read, buy, and want to see on their feeds every day. These behaviors have led to a new kind of marketing, known as data-driven marketing. This method involves collecting data about the consumer at every touch-point to better understand your audience. You can then interpret this data to predict future behavior and make real-time marketing decisions to alter your strategy. We break down the benefits of using data-driven marketing, and why you should start incorporating it into your strategy today.
Where to Begin
As always, you need a plan before you can begin your data-driven marketing. Set goals to define the purpose of collecting this data. Do you want to personalize your customer experience or acquire new customers? Maybe you want to measure your ROI or re-target your individual market segments. There are many uses for data-driven marketing, and they are all beneficial to your strategy’s success, but it is important to identify why you need the data in order to know where to look for it and how to apply it. Depending on your goals, you can collect customer data, data on the target market, competitors, online purchase behavior, browsing patterns, or social media activity, among others.
No matter what goal you choose for your data-driven marketing, they all play into a bigger picture, which is enhancing the customer experience.
Identify Target Markets
Though it may seem best to target as many customers as possible to gain a greater reach and increased purchases, oftentimes this leads to incorrect targets and unread messages. Instead of staying broad in the hope of reaching potential customers, use data to target customers with the most interest in your offerings. Data-driven marketing can not only help identify who is in your target market, but it will help you separate and group your targets into audiences with diversified messaging. Making small but significant changes to your messaging can better target those in your varied markets. You can even use data to re-target customers based on their past behavior.
Data-driven marketing can help you craft highly targeted campaigns. In collecting data, you can experiment with different types of content—video, infographics, gifs—to see what resonates best with your audience. Analyze that data and apply it to future campaigns to create relevant content that will increase engagement through clicks, likes, and shares. Creating campaigns that fit with the tastes and needs of your target market builds brand trust, which often leads to increased purchases, loyalty, and positive feedback.
Improve Product Offerings
Collecting data can help you improve your product and service offerings when you listen to the feedback provided by customers. Whether there are simple improvements to be made, like a faster response time to inquiries, or a major change addressing the functioning of a product, listening to what your customers have to say will improve your brand reputation. This will also help your business overall, as an improved product will encourage more sales.
Data-driven marketing is not a one-and-done plan. Time and effort need to be put in to receive the best results. Continuous monitoring of the data will help you identify what is working and help you make adjustments where needed. If you need help with incorporating data-driven marketing into your strategy, contact Kraus Marketing today to talk to a digital marketing professional!