To put it simply, data driven marketing is a marketing strategy that is based on data that a company collects. This data is based ultimately, on what the consumer needs or wants.
What is Data Driven Marketing About?
In order to market based on data, you will have to collect data, analyze it, and then integrate it into your marketing campaigns. This data can be obtained from external sources as well as the internal ones. The data you collect can be sourced from:
- Global market research
- Interactions on a social level, both online and offline
- Online consumer activities
- Offline consumer activities
- Intelligence reports
- In-house market research
The internet has changed the way consumers shop, which makes marketing that is data driven even more relevant.
In order to market in a way that is truly data driven, you need to take a number of steps to get there.
Steps to Data Driven Marketing
1. Create a marketing management approach that is integrated
You cannot market using data if you do not obtain that data in the first place. That is why you must integrate all marketing methods within your organization.
You need to streamline all management systems that you use in order to improve the process of capturing the data. Your internal workflow must be simplified. External data sources must be integrated too. You need to use innovations to enhance client interaction with your business across all the channels that you use. These in turn will provide continuous feedback on consumer behavior so that you can keep up with their changing shopping trends.
2. Internal and External Analysis
You must take stock both internally and externally of what is happening within your organization. This means that you should conduct in-house research into what your customers need or want.
You also need to analyze the challenges that your employees have within your business. These challenges could be personal or related to your consumers. Research should also be done externally. This will be based on external perceptions of your company from all stakeholders as well as non-stakeholders will.
The aim of both internal and external analysis is to gain a deeper understanding of what your company is doing wrong or right as well as what more needs to be done.
3. Use the best practices
Once you have gained insight from the data you have been able to collect from your business management systems and research, then it is time to use the best practices possible.
Best practices vary. However, you will have to overhaul your marketing methods to be able to meet the new goals that you have set based on your newfound insight. You should consider using the best marketing experts available to help you implement these new methods.
4. Get the help of experienced partners
Despite your best efforts, you will stumble in your quest to implement data driven marketing within your organization. This is where the experience of others comes in handy. It never hurts to get mentors in form of companies similar to yours. You will be able to learn about what works for your situation and what does not. By learning the ropes from more experienced people, you will cut down the time required to meet your marketing goals.
Learning by experience is something that you will do by networking, and listening to others. Take time therefore, to attend workshops that are concerned with the issues that your company will be dealing with.
5. Simplify regularly
When you implement the new integrated marketing systems, the data you collect will accumulate and become complex again. This is something that you must avoid at all costs. If you want to stay on top of consumer centric data, then you must implement IT strategies whose function is to keep on simplifying and streamlining the data you will be collecting regularly. When you let the ball drop, then you lose sight of your goals, which can be a very big problem for your marketing team.
Real World Applications of Data Driven Marketing
It is important for you to know how to apply data driven marketing in real life. Otherwise, the data that you have managed to collect, analyze and integrate into your business systems will cease to be effective.
Below are some examples of how you can apply this marketing strategy in reality.
- Content marketing is part of marketing in a data driven way. This marketing entails producing content that is entertaining and educative. The content should be relevant to the internet users who are searching for information related to your business niche. This content can be in form of text, images, or videos. Content marketing is one ways in which you can draw your target audience in, by creating interest in issues for which your business provides the perfect solution.
- Effective ad placement is another way for you to use the data you have obtained to market to your target market. These ads can be placed within content or through different marketing channels. Using the insight you have obtained, you will be able to determine the right ads to be displayed at different times to specific consumers based on their behaviors. This makes such ads very effective in persuading your target audience to buy your products.
- You will also be able to fine-tune your segmentation strategies. This will allow you to advertise certain products to one group of people then a different product to another group of people based on what you predict they will need. You will also be able to determine which channel is the best for each type of advert. This means that you do not need to waste time and energy, advertising to the wrong crowd. By meeting the needs of consumers even before they think of it, you ensure that you are in a better position to make a larger volume of sales.
The world has become increasingly busier and this trend is set to continue. What this means is that potential clients have very little time to decide on what they want to buy in order to fulfill their needs. Your ability to make your business a success lies in meeting these needs in the shortest time possible based on a second or two that you have to make an impression.
Collecting data on every aspect of your business from all perspectives is therefore, the best way possible to find out what your consumers want, before they realize they have the need. That is why data driven marketing is the best option for your business needs.