Data driven marketing allows companies to optimize the useful information collected about their customers and use it to improve marketing strategies. This type of approach has spread especially with the growth of digital , which has made it easier to collect and analyze large amounts of data.
Let’s take a closer look at the main features of data driven marketing and the best strategies that companies can use to increase conversions and profits.
Data Driven Marketing: What It Is and Its Main Features
When we talk about data driven marketing we are referring to a specific marketing strategy that is based on consumer data and trends, focusing primarily on the collection and use of information to make decisions within marketing campaigns.
Professionals who work in this field study customers’ purchasing habits , how they react to advertisements and how they behave. The purpose of data driven marketing, therefore, is to offer useful and valid answers to questions that companies ask themselves about their target audience, namely “How”, “Who”, “When” and “Where”.
The collected data is used to make accurate predictions about the needs, desires and future behavior of customers. Thus, marketing strategies based on the data collected on the ideal consumer can guarantee a high ROI (Return On Investment).
The main differences between data driven marketing and traditional marketing
The goal of data-driven marketing and traditional marketing is essentially the same: to attract the company’s target audience and push them to make a purchase.
But what are the differences between these two?
Let’s start by analyzing traditional marketing , which includes any type of activity that is not done online. We are talking about print, radio, TV, sending mail, phone calls, billboards and posters.
In the process of creating the most effective message for the target audience, traditional marketing uses data from focus groups, customer surveys, and sales trends. Various methods are used to reach the public, from newspaper articles to radio and television spots.
Data driven marketing , on the other hand, mainly uses data as a source of marketing activities. Through their analysis , marketers can:
decide which textual content will be most successful among the web audience;
determine the effectiveness of audience segmentation in reaching your target audience and getting the desired response.
In this case, data is searched through the use of digital and multimedia channels.
In general, traditional marketing requires higher budgets and has lower profit margins , and also achieves less results than data driven marketing. The latter, on the other hand, is more cost-effective and guarantees higher profit margins , as well as ensuring a wider reach than traditional marketing.
This tool, therefore, gives companies a more effective sales help in achieving business goals.
The advantages that data driven marketing offers
Data driven marketing is an extraordinary tool for those who deal with marketing professionally and should be used in every marketing strategy. As with any system in this field, it has specific benefits.
First, it allows you to have a deeper and more detailed understanding of your target, so you can create a message that arrives directly and is well understood. Data driven marketing offers marketers a clear knowledge of their target. You can discover their behavior through the analysis of historical data . This allows you to improve the relationship with the audience.
In traditional marketing, you have an idea of your audience based on past habits and trends. However, there is no real data available to support these considerations.
The data driven approach also helps to create content relevant to the interests and preferences of your target audience, so as to offer them what they really want. Being able to understand the problems that the public is experiencing allows you to present them with the right solutions.
Buying a phone number marketing list is a productive method of data sharing. Businesses are able to efficiently communicate with how to build phone number list prospective clients in this way. We offer telemarketing data from various nations, guaranteeing the confidentiality and originality of the information while offering users many benefits. Improve conversion rate: Direct communication with potential customers can increase sales conversion rate and achieve business growth.
By analyzing consumer data , marketers can gain important insights into:
content styles innovation success measures report that shape user engagement;
the types of visual elements to propose;
the type of formatting that america email list most impacts interaction.
Data driven marketing strategy offers a personalized experience with the brand. This increases customer loyalty. It also generates a stronger bond with them through messages and content created specifically for them.
In fact, customers often do not like receiving generic messages from the brands they follow and from which they usually buy. It is therefore essential to offer them personalized content that can increase conversions and purchases.
Data driven marketing can help you develop a strategy. It can allow you to create personalized experiences for your target audience. In addition, you can monitor how your audience interacts with your brand, their purchases, and demographics.
Finally, this strategy offers the advantage of being able to understand which channels are best to exploit. In fact, through specific tools, you can monitor the customer journey starting from the initial contact to the final sale, tracking the different actions and behaviors that loyal and potential customers carry out within your site, on social channels or through email marketing campaigns.
By collecting and analyzing all this data, you can understand which channels work most effectively for your target audience.
Sharing data across channels
Today, in fact, customers do not interact with a company using only one. This means that the differentiation of information represents an obstacle for all those companies that want to base their marketing campaigns on an omnichannel strategy .
Trends and information from one channel should be shared with others, so that decisions can be made that are more effective. This type of approach also allows for unifying customer profiles.
For example, if a customer views a service or product on a social channel, they should be able to easily find it even when they are browsing the company’s website. Sharing information and data between channels, therefore, makes conversions smoother whenever customers move from one platform to another.
Another plus of this strategy is the possibility of using successful actions on one channel in another. For example, if a Call To Action (CTA) that has obtained numerous clicks and conversions in emails, it can also be tested on the website or on a social media post.
Additionally, if certain keywords used in paid advertising are achieving a particularly high number of clicks and conversions, these can be shared with the social media team, so that winning posts can be created aimed at the same target.
Exploit demographic data for the planning of the campaigns
This is another very effective data-driven marketing strategy.
The most important demographics are: age, birthplace, income, education, occupation, marital status.
Collecting lead information is important. We can get it from social media accounts and online contact forms. This helps us optimize buyer personas and create targeted marketing campaigns.
Personalization of the customer journey
Creating customized experiences is essential for a company that aims to retain customers and generate greater conversions.
Consumers also expect brands to provide them with personalized interactions, and most are disappointed when this doesn’t happen. Statistics show that growing companies can achieve 40% more profits through personalization.
This strategy needs to exploit customer data.
There are various methodologies for leveraging data to create tailored content. The most common ones to start with are:
offer customers personalized recommendations on products or services .
This type of action can be performed via landing pages, home pages, emails, paid ads or posts on social networks. It will be enough to automate the data regarding recent product views and purchases. In this way, up-selling or cross-selling
proposals can be made ;
offer personalized discounts and coupons .
Thanks to the data collected on customers, it is possible to offer them discounts on items that have been abandoned in the cart or coupons to redeem gifts on special occasions, such as a birthday or to reward loyalty.
create personalized messages:
Names within the body of emails or messages and gifts on a customer’s birthday are simple ways to leverage customer data for tailored content creation purposes.
Predictive analytics
This strategy uses machine learning to analyze customer data and predict future behavior. In fact, companies collect a large amount of information that they are then unable to organize and use manually.
Through predictive analytics, on the other hand, analysts get help in managing this data. The benefits they get are, mainly, two: creating more accurate customer profiles and identifying the best accounts.
Data Onboarding
We present one last useful strategy regarding data driven marketing, that is, the deepening of information on your target through data onboarding.
This is the process of acquiring offline customer information and moving it to digital platforms such as CRM . The data collected can be of various types, such as contacts, purchases in physical stores and much more. After their correct transfer to your online platform, they can be used to improve digital marketing campaigns.
This type of activity could require a lot of effort and the investment of several resources, as well as a lot of time. The biggest difficulty is to respect privacy and make every information obtained anonymous. However, it is a crucial process to provide your marketing team with very useful and valuable data.
