Marketing might once have been done based on gut feelings and guesswork, but not anymore. Now, data-driven marketing is reinventing how business does what it does – and especially how business-owned brands understand, target, and engage with their audience. By taking an objective, data-driven approach, you are able to create campaigns with a high level of personalization and effectiveness, as well as ensure that efficiency and ROI are maximized.
If you’re eager to change the way you market your brand, you’ll want to stick around to find out what data-driven marketing is, how to use it, and examples of success in action.
What Exactly Is Data-Driven Marketing?
What Is Data-Driven Marketing
Data-driven marketing is a marketing engagement strategy where personalized customer experiences are derived from specific tactics. When leaving the game plan in your marketing approach to data-driven solutions, you will see results in terms of strategy and optimization. Rather than operating on a hunch or by the seat of your pants, data-driven marketing incorporates information obtained from a myriad of sources – e.g, website analytics, customer behaviors, and purchase histories – to make more intelligent decisions.
Why Is It Important?
Nor is the move to data-driven strategies entirely happenstance. Here’s why using it is essential for marketers today:
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Wiser strategy: Make decisions that are based on solid facts, not guesswork.
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Personalization: Leverage information, such as ad or message relevance, to target the audience.
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Better ROI: Maximize campaigns and finance spend where it works harder.
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Deeper customer connections: Leverage intelligence to know your audience’s needs and likes and deliver messaging that resonates.
Setting Clear Goals and KPIs
Before you start swimming in data, it’s important to establish what success would look like for your marketing efforts.
Defining Objectives
What is the objective you want to reach with your marketing? A well-defined goal, Focus , and direction are provided by clear goals. Your goals might include:
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20% More Website Traffic in 90 days
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Producing About 50 New Flips Every Month
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Increasing Email Click-Through Rate by 15%
Make your goals SMART = specific, measurable, achievable, relevant, and time-bound.
Quantifiable measures that the company uses to measure performance.
Selecting KPIs
Once you define your goals, you need to select the KPIs to track your progress. For example:
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Website Traffic KPI: Unique page visits or page views, or bounce rate
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Lead Generation KPI: Downloaded eBooks, filled out forms, or requested demo COMPANY experience possible! important
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Sales Conversion Metric: Revenue earned, recovered abandoned carts, or number of deals closed
These can be some of the KPIs that will provide you with a sense of how you are doing or let you know that you need to tweak your approach.
Data Collection Methods
At the core of data-driven marketing is strong data gathering. To learn what your audience wants and to identify pain points, turn to these sources:
Website Analytics
Products like Google Analytics offer powerful user behavior analytics, such as:
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Traffic volume
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Average session duration
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High-performing pages
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Bounce rates
Analyze these measures to determine what is working and where you need to make adjustments.
Social Media Analytics
Sites such as Facebook, Instagram, and LinkedIn all have native analytics to help keep tabs on:
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Click-through rates (CTR)
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Audience demographics
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Click-through rates to the website
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Other engagement (likes, comments, shares)
Use this information to refine your marketing messages forward.
CRM Data
You also have customer data housed within your CRM, including purchase history, email interaction, and customer lifecycle stages. Knowing these numbers can allow you to personalize your engagement for the optimal effect.
Surveys and Feedback
Sometimes the shortest route is the best. Gather surveys and feedback directly from your audience to discover insights you could miss through analytics. Leverage tools such as Google Forms or Typeform to make this process easy.
Analyzing Data for Insights
When your data is gathered, that’s when the real work starts. Data analysis is key to revealing actionable insights.
Tools and Techniques
Here are a few tools that help me effectively and efficiently analyze data:
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Google Analytics for site metrics
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Tableau or Power BI for Intermediate to Advanced Data Visualization
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HubSpot or Salesforce for intelligence around CRM stuff
Trend and Pattern Recognition
What you are looking for are patterns in your data. For example:
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Do certain days or times see their highest sales?
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What type of customer responds the most to your email marketing campaigns?
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What types of content bring the most visitors to your blog?
Answering questions like these provides much-needed clarity around what’s working (and what isn’t).
Staffing a Data-Driven Campaign
To do this, Savary put into practice data-driven strategies.
Your actions tomorrow are led by the wisdom you gained today through analysing your data. Below are some ways to put your insights into action.
Personalization
Personalize every interaction by using customer data. Examples include:
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Dynamic email content is created based on the user’s purchase history.
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Recommendations based on previous browsing products
Content Optimization
Types of data can inform the kind, style, and delivery of your content:
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Experiment with A/B testing to determine whether headlines or designs work better.
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Write for blog work around words with significant search volume, as identified by SEO.
Targeted Advertising
Leverage data-driven audience segments to make sure your ad is served to the right people. Services including Google Ads and Facebook Ads Manager offer an incredibly granular level of audience targeting based on demographics, interests, and online behavior.
Gauging and Adapting Your Approach
Your marketing strategy is never set in stone. Track results, see the effects of efforts, and tweak campaigns on a daily basis.
A/B Testing
Tinker with variables to see what gets the best response from your audience. For example:
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Test an ad with two different headlines.
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Compare two email layouts to see which one receives the highest click-throughs.
Continuous Improvement
Marketing is not static. By what worked and what flopped in each campaign. Then take that information and adapt your approach so that you can do better next time.
Case Studies and Examples
Data-driven marketing in action – 3 examples in the wild
Here’s how data-driven marketing shook things up in the real world:
Netflix
Netflix, for example, is well-known for relying on data to create personalized recommendations for its users. This customization is key for retaining and engaging customers.
Amazon
Amazon’s sales are driven in part by its product recommendation engine, which offers suggestions tailored to a customer’s purchase history. Data is power: these recommendations generate 35% of Amazon’s income.
A Summary of Data-Driven Marketing
Unlocking the Power of Data-Driven Marketing
Data-driven marketing is the new trend on the horizon.
The data revolution has transformed marketing like never before. From knowing your audience to how to make your campaigns impact, being data-driven in marketing is crucial.
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