Data is one of the most important elements of marketing because it allows you to make strategic business decisions. You must know how to use data effectively so that it drives your sales and marketing efforts correctly. Data-driven marketing may sound daunting, to begin with however, it opens up so many opportunities to get your marketing materials in front of the right people at the right time.
What is Data-Driven Marketing?
Wiki states that 'Data-driven marketing is a process by which marketers gain insights and trends based on in-depth analysis informed by numbers. Data-driven marketing refers to strategies built on insights pulled from the analysis of big data, collected through consumer interactions and engagements, to form predictions about future behaviours. This involves understanding data already present, data that can be acquired, and how to organise, analyse and apply that data to better marketing efforts. The intended goal is generally to enhance and personalise the customer experience.'
How do you use data within your marketing?
To set goals
Setting goals is a vital process for tackling any marketing task. I would recommend using the SMART model which means setting Specific, Measurable, Achievable, Relevant and Timely goals. Without existing data, it's hard to set specific goals and measure ROI. However, if you've already been measuring previous marketing activity to see the success rates this will help you determine how successful your next campaign will be. It'll also help you to make strategic decisions on what can be done better to increase sales and ROI.
Did you know?
To build personas
To increase sales and create more direct marketing campaigns you need to know who your target audience is. By using a CRM system and marketing tool you can easily build demographic and psychographic segments. This will give you insights into who your customers are and how they behave. You can then build buyer personas so that you know exactly who the people are that are buying your products or services. From this, you can create content that adds value to your customer's lives and motivates them to buy because you already know what they want from the data that you've been analysing.
To personalise communication
With existing data on your customers and prospects, you can create more direct and personal messages for them. I'd recommend collecting data on the businesses' industry, their company size, their location and their preferred communication method as a starting point. Within that, you will also need to collect data on the specific contact that you're communicating with, their email address and name. When you have all of this information you can create emails with the individual's details on so that they feel special. This is a great way of increasing engagement and sales because the marketing industry is so competitive at the moment, buyers want to receive more than your typical sales email.
To select the correct channels
If you're using social media channels I'd recommend that you report on your social media analytics. You can find these within the actual channels or you can report on them using a third-party tool like Hootsuite that also schedules content for you. Analysing this data will show you which channels you are getting the most sales and engagement from. By testing, you should also be able to make the decision on what time of day your content should be published.
Using data-driven marketing with all of the strategies I have mentioned above, your marketing efforts will become a lot more focused and direct towards your target audience. It'll allow you to create more specific content based on your customer's desired outcome, this will result in more sales and an increase in ROI.
Are you looking to start building personalised campaigns from your data that actually work?