The world of marketing has changed its way of functioning over time. Marketing has seen different phases where the old ways of marketing are very different from the new approaches. In today's sphere of marketing, there is no space for walking on assumptions as everything is based on data and statistics.
Important aspects of marketing are carried out based on thorough marketing research by the marketing professionals in every company. The most famous marketing approaches in recent years are driven by data. Unfortunately, there remains some gap to fill when working with the data-driven marketing approach.
Marketing professionals sometimes struggle to find the relevant data, make forecasts based on those data, preserve and extract data and so on. An online CMO programme with good insights can help one understand the approach of data-driven marketing and how to work with it. Read on to understand the concept of data-driven marketing and its importance in making precise marketing decisions.
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What is Data-driven Marketing?
Data-driven marketing may at first seem scary and confusing. But if one does away with all the technical jargon, many of its tactics and methods ought to be instantly recognisable. Data-driven marketing is a marketing approach where the marketing unit of a company comes up with new strategies and methods on the basis of big data analysis. The thorough analysis helps in identifying customer preferences and recent trends that can result in the success of a marketing campaign.
A data-driven marketing approach is completely based on the large pool of information that businesses have access to. The marketing units of organisations use multiple applications and websites to collect data and understand the taste and preferences of customers which helps in planning better marketing campaigns. In this way, it is easier for marketing teams to determine which marketing step has generated more engagement and which method fetched the most return on investments. On the basis of the evaluations, companies can fine-tune their efforts to guarantee the best client experiences and the highest return on marketing expenditures.
Benefits of Data-driven Marketing
The modern approach of data-driven marketing is completely based on recent trends and customer tastes. Intriguing marketing campaigns are more likely to achieve success as potential customers tend to click on those ads and make purchases. Data-driven strategies help to identify the target audience and enhance customer experience with brand perception.
Data-driven marketing approach provides numerous advantages to companies that are enumerated as follows:
Improve customer experience
Better customer experience is the driving force of digital marketing and it is done by marketing professionals with in-depth customer profiles. It is essential as customers tend to leave a website if they do not like the brand's response.
Data-driven marketing approach provides enhanced personalisation that fosters a pleasant customer experience and also establishes the trust of the consumers in the brand. It has been seen that personalising customer experience is a great way of increasing the return on investments. The better the brand's response will be, the more customers it can attract.
Enhance attribution for spend optimisation
A very common hindrance for companies is to identify the area where the marketing investments are going to waste. With the help of data-driven marketing and the various analytical tools it offers, it is easier for marketing units to identify the fraction of the marketing spend that is not yielding desired results. The analytical tools allow marketing professionals to determine what is creating brand awareness and increasing engagement rates and what is not working in their favour.
Evaluating the journey of customers by using multiple attribution models is the best way of doing it. It generates a comprehensive list of the purchases made by consumers and designs marketing campaigns accordingly.
Generate relevant information
The marketing team can gain insights into the taste in preferences of the customers, what they frequently purchase, what areas they like to explore and so on by analysing consumer data. Once the relevant information and data are analysed by the marketing teams, it is easier for them to send relevant messages and ads to the consumers at the right time. This is a value-added method of converting one-time customers into frequent buyers.
Unfortunately, not all marketers are equipped with the ability to collect the relevant information only. Hence, some marketers face a lot of trouble in matching their content with that of the interest of the potential buyers. In such a scenario, it is best to select only the information that can align with the interest of the buyers.
Better decision making
The data-driven approach of marketing allows marketing professionals to make more informed decisions that are not based on assumptions but on facts and information. The approach is not based on theories and works based on real-world use cases.
However, data-driven marketing also takes into consideration the emotional factors that influence the choices and preferences of the buyers when making a purchase. That is why marketing professionals build strategies that value both the rational and emotional aspects of marketing by evaluating multiple frameworks.
Creating a Data-based Marketing Strategy
Marketing professionals can design a marketing strategy that is based on data by following the below-mentioned steps:
- Step 1- Setting clear objectives for the data: before collecting data, the marketing team must be clear about what the focus point of the data should be. Identifying clear goals for the data helps in retrieving better insights.
- Step 2- Gathering relevant data: The data must be collected in accordance with the objectives. Only that data should be gathered that helps in forming better strategies for marketing campaigns.
- Step 3- Organising the collected data: The gathered data is to be organised on a compatible data platform. It also helps to determine the sources of data.
- Step 4- Building a dedicated team: For the purpose of analysing the data, a company has to prepare a dedicated team of marketing individuals.
- Step 5- Getting specific permissions: Designing campaign-specific marketing strategies may require seeking the permissions of the stakeholders.
- Step 6- Monitoring and tracking progress: A marketing team must come up with a strategy to constantly measure and track the progress of the campaign. It improves the analysis and helps to regulate day-to-day reports to the stakeholders
As the marketing world is constantly changing, obsolete marketing strategies will not yield suitable results. If you are a marketing professional and want to make it big, the Executive Marketing Programme for Strategic Chief Marketing Officers by Imarticus can assist you in achieving your target. Become a CMO of the future with the best knowledge and abilities to make marketing decisions.
Today data-driven marketing is a necessity to meet consumer expectations and make prudent marketing decisions. As there are numerous applications, websites and channels of promotions, analytical tools function better when coupled with data. Increase your chances of becoming a CMO by learning all about the data-driven marketing approach.