Marketing based itself a method that uses data capture, acquired through constant monitoring of interactions with customers and third parties, to gain a better insight into customer motivations, preferences and behaviors. Thus, the implementation of this perspective helps us optimize the performance of marketing channels while we manage to improve the customer experience. Objectives that determine the success of the omnichannel approach to sales processes.
Why data-driven marketing is important
The use of this data-driven approach in marketing strategies could already be thought of as a standard for decision-making, as it provides a snapshot of customer buying habits.
This data collection starts in traditional dimensions and metrics such as age, income level, marital status, number and ages of children, birthdays, and other demographic data. But also aim for precise foci like A/B testing to select one creative over another, based on click data over a given period of time.
Marketers can use data-driven marketing practices to set goals by leveraging various data sources. In the B2C market, for example, these may include demographics, psychographics, social media metrics, CES (customer effort scores), NPS (Net Promoter Scores), and others.
Studying these data can reveal segments of a general population that have similar preferences, behaviors, or inclinations. Understand the data achievedhelps brands refine their messaging and offerings to fit as closely as possible to those segments. This process clarifies the establishment of objectives that will later be those of the strategy.
How is the data used? If they are done product marketing campaigns through various channelsthe data can be used to identify the best performing channel at each stage of the brand funnel, and thus take advantage of attribution solutions for marketing.
Streaming companies, for example, both audio and video, suggest movies or songs, based on user recommendations or past searches. On the other hand, the big retail brands organize and plan special offers or discounts based on the searches that customers have on their pages.
There are references to how chains like Walmart appeal to the use of Artificial Intelligence and machine learning to identify the products most sought after by consumers and automate discount campaigns that have boosted their website by 10% and 15%.
Steps for a data-driven marketing strategy
1. Identify the objectives of the strategy from a SMART perspective in its definition:
- specific (Specifics). Instead of “increasing” revenue, be specific: “increase revenue by 12%.”
- Measurable (Measurable). They must be reducible to a number.
- achievable (Achievable or attainable). The goals must be achievable. Otherwise, they are useless.
- relevant (Relevant). The achievement of the goal must benefit the company in some way.
- Prompt (Time bound). Set a reasonable time frame for accomplishing each goal.
2. Decide what kind of goals you want to set
These could be about attracting new customers, revenue, profit, improving the customer experience, or a mix of the above.
3. Build a team with the necessary skills to analyze the data you capture
Value the incorporation of interdisciplinary teams: sales, IT, marketing and customer service, for example
4. Work on defining your buyer persona
5. Prioritize the data you need
Depending on the goals of a given campaign, you may need to look at web page view time, browsing routines, social media interactions, data captured by CRM, survey results, or more.
6. Automate your workflow
The amount of data available exceeds the ability of most teams to process and gain insights. Select automation tools that work with the type of data to be collected.
7. Capture your data
Whether they come in real time, through an intermediary or from third party sources. Then, use the automation tools that you have selected for the analysis.
8. Decide the channels you will use to carry out your campaign
You can choose PPC ads, email marketing, content marketing or any method compatible with your needs.
9. Finally, launch your campaign
Monitor the results, calculate your ROI, and then take what you’ve learned to improve the next iteration.
Essential tools for data-driven marketing
. Website analytics tools like Google Analytics will tell you about the actions your visitors take on your site, how they got there, what they bought, what your most engaging content is. You can also take advantage of Google’s tool to collect additional reports from digital marketing channels outside of your website.
, either Finding potential clients is easy. Finding high-quality leads that really grow your business is the tricky part. Marketing automation software like Marketo, or Pardot can help you capture, qualify, and distribute high-quality leads.
Marketing attribution software like Bizible will provide you with strategic insights about your business. With trends like shrinking attention spans and excessive use of emails, marketers need tools to help them effectively understand how to best spend their resources.
, Salesforce or Oracle are great options for customer relationship management, or CRM, software. You can create a database to store information about your prospects and customers throughout the funnel, and this data will give you a status about the return on investment and retention.
As you collect data, it’s critical to keep the information accurate and secure. Data platforms like Segment improve the integrity of your data. According to a survey conducted by PwC, the of CEOs believe that data on customer needs and preferences is relevant. This software helps marketers show management that they are taking consumer data as seriously as their leadership team.
Miguel Ángel Blanco Cedrún, CEO and Dean of Spain Business School
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