Every marketing campaign a company launches must aim to reach its target audience strategically, using data as a guiding factor. Data-driven marketing is a way to reduce advertising revenue loss and save time by focusing on the right target market.
It doesn’t matter which industry you’re in, your gut feelings or assumptions about your customers or how to market your business are valid.
To get the best out of your advertising spend, you must have something that can be tracked and taken action at every stage.
This article will discuss how data-driven marketing can improve your business’s ability to target niches and grow your sales.
What is data-driven marketing?
Data-driven marketing refers to optimizing brand communications and advertising for your business based on customer data. Data-driven marketers use customer data to predict future behavior, and their needs and make decisions.
Data can provide insight that will help you create customized marketing strategies to maximize your return on investment.
Data-driven marketing can be described as the combined data and strategy used to optimize marketing campaigns.
Data-driven businesses can analyze customer data and identify trends and patterns. This information can be used to determine how to best advertise, promote, or sell to future customers.
Benefits of data-driven marketing
Data-driven marketing, and particularly data-driven advertising, have many benefits.
Media buying is more efficient Data-driven marketing is the most sophisticated in programmatic buying. Ad agencies and marketers can remove much of the guesswork out of media planning and purchasing by leveraging algorithms or machine learning.
To target the right customers, advertising spending and marketing messages must be optimized so that they are shown only to the appropriate targets.
Marketing messages that are generic and universally applicable are no longer relevant. These big ideas are still possible for brands. However, marketing messages need to be more specific to appeal to consumers.
Data-driven digital marketing has the greatest benefit: you can see your customers in a tangible way. Data tools allow you to measure all online activity and collect digital marketing data that will help you make informed decisions. Traditional marketing relies heavily on guesswork and is the opposite.
What are the KPIs for digital marketing?
A key performance indicator (KPI), is a measurement that measures your company’s performance in relation to a defined objective.
KPIs are key performance indicators that measure the success of a company and help evaluate its long-term and short-term performance. KPIs in digital marketing is used to help your business grow and increase your reach, engagement, and brand authority.
Digital marketing offers a number of key advantages over traditional mediums. You can measure and track your marketing results with pinpoint accuracy. Your reports will show you the exact numbers of clicks and engagement, as well as purchases.
These are the top digital marketing KPIs that you should be reviewing for your business.
- Unique visitors
- Rate of bounce
- Clickthrough Rate
- Social media engagement
Before you can track your progress or measure your success, it is important to set goals for your business and your marketing. After all, you can’t hit a target you can’t see.
These are some of the goals business owners set when it comes to marketing.
- Customer loyalty can be increased
- Attrition rates of customers will be reduced
- Customer retention rates should be increased
- Customer satisfaction and experience enhancement
- Website bounce rates are reduced
- Increase click-through rates
- Increase brand impressions
- Increase SERP rankings
- Increase social media mentions
- Increase website visits
- Increase new customer acquisition
- Increase existing customer purchases
Marketing KPIs will be more effective if you have established goals. Once you have created a plan, the KPIs must be used to assess if you are getting closer to your goal.
The link between data and KPIs
The internet age has created a lot more information overload than it is worth, but it offers business owners the opportunity to gather and use data to their advantage.
Digital marketing data is used by all major brands to understand customers. You can too.
It is possible to see the engagement of your visitors with your website’s content and which email marketing version works best for you.
Business owners now have access to big data. They can use key performance indicators to predict outcomes, and then make adjustments to their approach.
Create a data-driven digital marketing strategy
It takes time and energy to plan your data-driven marketing strategy. You should have a team of people from different departments such as sales, marketing, information technology, and customer service to accomplish this task effectively.
A centralized analytics tool, such as a dashboard for business or access to tools such as Google Analytics, makes it possible for the team to use the data to their advantage.
1. Establish realistic marketing goals
It is a good idea not to set too many marketing goals at once. This allows you to identify the most important data and narrow down your key performance indicators so that your business goals are met. This allows you to be more focused and efficient.
Keep your eyes on the bigger picture. Even though some data points might be less than desirable, the overall success of the business is what counts.
To establish a baseline, evaluate the success of any digital marketing campaigns you already have.
Last, make sure you align your marketing and business goals with available resources. While it’s wonderful to wish to increase sales and reach, you need to know how much money is available to make that happen. Do not set unrealistic goals at the beginning. If you do, your team will be frustrated and disappointed.
2. Collect data
After you’ve started marketing and have seen results, it is time to start collecting data.
Each data set should, in principle, be managed by a particular department (e.g. social media team for analytics on social media) and then input into the central reporting dashboard.
Sometimes, data can be automatically uploaded by linking your accounts. Tools like AdEspresso can easily be integrated with tools such as Google Analytics or Facebook Ads.
You should also manually review the results from each platform every now and again. You may get accurate reports, but you might be missing important information if you don’t return to the source frequently.
3. Assess and Refine
It is crucial to evaluate the impact of data marketing results. Customers have specific needs and require a customized strategy. It is only by watching them behave that you can determine what works well.
Keep testing as you go through your results. You should always test your new approach on a small scale before making any major changes.
Don’t throw away what works. Keep the best approaches working as you refine your campaign approach. Marketing can be prone to abandon a campaign if it produces poor results. While this strategy is not wise, some elements of the campaign are still working. It’s all a matter of adjusting your approach.
Finally, make it easy for customers to buy your products. Although it may seem simple to you, the business owner, how can customers or prospects purchase your products? Find ways to simplify your sales process and eliminate any obstacles that could slow down or stop you from reaching your goals.
Most popular data-driven marketing tools
Data-driven marketing tools can make your life much easier. These are the top data-driven marketing tools that can be used across all channels.
- Advertising/Retargeting: Google Ads, Rocket Fuel, AdRoll, Adespresso
- Analysis and reporting: Databox, Tableau, DataHero, Optimizely
- Content: SEMRush. Buzzsumo. Canva
- CRM (Customer Relationship Management): SAP, Salesforce, and Sugar
- Marketing automation: Marketo. Oracle Eloqua. Mailchimp.
- Social media: Oktopost, Facebook for Business, Mention
- Website analytics: Google Analytics Marketing Platform. Alexa. Mixpanel
A reliable digital marketing agency that is data-driven can help you get the most out of the data you collect from these analytics tools.
How to use data-driven marketing to grow your business
While data-driven marketing may be rooted in numbers but it’s people-focused.
Every decision you make is intended to change the mindsets and behavior of your customers or new prospects. Make sure your data-driven marketing is human-friendly whenever you want to make a change.
It is important to not be afraid of its power as it can help propel your business towards next-level visibility, profitability, and even growth.
If you want to build relationships with customers and surpass your competitors, data-driven marketing must be a requirement. If you want to improve your results, all of your business goals and marketing KPIs should be based on data.
Data-driven marketing is easier than ever thanks to the easy availability of data and tools to analyze it. This gives you an advantage when it comes to growing customer relationships, increasing conversions, and boosting revenue.