How can data marketing benefit an agency?
More and more, the trend is the increasing investment of time and money online. This factor makes the use of data-based marketing strategies more vital than ever.
In this article, you will read:
- What is Data-Driven Marketing?
- The importance of data Marketing
- Importance of a Data-Based Marketing Agency
- 11 Benefits of Data-Driven Marketing
- How to create a Data Marketing Strategy?
- The most common KPI’s and how they relate to the data
- How to Use Data Driven Marketing to Grow Your Business
- 7 Ways to Create a Data-Driven Culture
- Process Optimization
What is Data Driven Marketing?
Data-Driven Marketing or Data-Based Marketing is the set of tactics and techniques based on the collecting, processing, and analysis of large amounts of data obtained through the brand’s interactions with consumers.
This data allows you to better understand customer behaviors, preferences, and motivations and develop effective marketing plans. Thanks to this data, you will be able to predict your future marketing goals and actions, as well as develop customized strategies that enhance the ROI (Return On Investment), as they allow you to predict the needs, decisions, and future behavior of consumers.
Data represents an essential part of the growth of a digital marketing agency, as it forms the basis of decision making.
Did you know that...
- Data-Driven Marketing companies are six times more likely to remain profitable year after year?
Data Marketing: the new must have
Data-driven marketing gives you access to actual insights about your marketing activities.
Through this data, you get information about the habits and interactions of users with your website. These data allow you to:
- Get to know what works and what doesn’t, allowing you to adapt messages and content.
- Impartially and accurately assess your marketing tactics, strategies, and campaigns.
- Know what kind of content to communicate, in which channels, and when. By not investing in poor tactics that you know won’t work for your target audience, you’ll be saving time and money
- Know where your customers are – through marketing automation and analytical tools, you can find out through which channel users arrived at your website or online store, which social networks they frequent, what time and days are the most frequent. Knowing this, you can adapt your campaigns and communication.
- Understand the needs and desires of consumers, improving their perception of your brand and the consumer experience. These strategies lead to high segmented engagement and better conversion rates
Importance of a Data-Based Marketing Agency
These agencies have access to both the knowledge and tools needed to use the data effectively. By working with a Marketing Agency, you will be able to access all the tools needed with Big Data. This partnership also means that you will be able to focus on the day-to-day operations of your business, without having to invest time and money in learning all these techniques and tools.
11 Benefits of Data-Driven Marketing
Data Driven Marketing guarantees you access to data and specific information about your customers and your target audience – such as their interests, needs, lifestyle, online activity, pain points, and channels they use and don’t use. Basically, it allows you to get to know your current and potential customers at a deeper level. This information brings you several benefits, making your Marketing strategies more efficient in terms of time and costs. Through Data-driven Marketing you can:
- Create personalized and highly targeted campaigns
- Communicate more consistently
- Use resources efficiently
- Segment your audience
- Know your consumers in advance – you can have access to data about your consumers even before they know your brand or have interaction with your content.
- Improve Product Development – you will be able to adapt the value and features of your product depending on the information you have, increasing the probability of success.
- Personalize your Marketing even more
- Improve the Customer Experience
- Increase cross-selling and up-selling opportunities – You will be able to slide potential customers through the sales funnel more quickly and cost-effectively.
- Increase Revenue and ROI
- Embrace Marketing Automation in an easier way – With the help of the right marketing automation tools, you can transform the insights and data you access through Data Driven Marketing into marketing workflows and tasks.
64% of marketers agree that using data-driven marketing strategies is crucial for a company in the modern economy to be successful.
The adoption of these marketing techniques and tactics offers you enormous specificity, increasing the ROI and the overall success of your marketing campaigns, making all the work more efficient and effective.
How to create a Data Marketing Strategy?
Planning a data-driven marketing strategy takes time and energy. There are a few points you can base yourself on when creating your Data-Based Marketing strategy:
- Set realistic marketing goals – start by setting a limited number of goals, so you can determine the data you need to analyze and define the Key Performance Indicators that matter. Remember to look at the data from a bigger perspective: even if some data points don’t seem so positive to you, the overall success of the business is what matters most. If you have some digital campaigns, determine their success, so you can create a foundation for later use. Finally, align your business and marketing goals with the resources you have available.
- Collect data – After starting your marketing activities, you must collect data.
- Evaluate and refine – Evaluating the impact of results is essential. Your customers have unique needs that require a tailored strategy, and you can only know what works best if you pay attention to their behavior. Remember to test content on a small scale and not discard what is bringing you good results. Finally, remove any barriers you may have to purchase – look carefully at all the steps and check that there may not be points where your consumers believe there are barriers – simplify and remove obstacles that could slow or limit your sales.
The most common KPIs and how they relate to the data
KPIs are key success indicators that measure the performance of your business in relation to a specific objective. They allow you to measure the success of your business in the short and long term. In digital marketing, they are used to ensuring business growth and to verify the evolution of brand engagement, reach, and authority.
Before you start measuring your business KPI’s, it’s important that you set goals – both business and marketing goals. Some of the most common goals of digital marketing include: Increasing customer loyalty, increasing retention rate, improving customer satisfaction and experience, reducing website abandon rate, increasing click-through rate, increasing purchases, among others. KPI’s will help you follow the progress of your goals.
The most used indicators in digital marketing that you might want to pay attention to are:
- Unique visitors
- Abandon rate
- Click Through Rate
- Cost per Acquisition
- Cost per Opportunity
- Engagement in Social Media
All big brands use data to understand their consumers. Through the data, you can see how consumers interact with your content and what kind of content they prefer.
KPI automation allows you to improve the efficiency of your company. Discover the 4 KPIs that you can automate.
How to Use Data Driven Marketing to Grow Your Business
Although based on numerical data, it is important to bear in mind that data-based marketing focuses on people, as all decisions that are taken are aimed at improving the customers’ experience, their interaction with the content, and with the brand and influencing their behavior.
Take advantage of the data, but make sure that the changes you want to implement make sense on a more human level.
Data-driven marketing can drive your business to the next level of visibility and profitability, enabling you to improve your customer relationships, increase conversions and drive revenue.
7 Ways to Create a Data-Driven Culture
1. Involve the entire team in the data
It’s not just the marketing team that needs data – every member of the company should have access.
2. Use the right analytical tools
Technology is essential if you want to use data effectively. Be sure you have access to effective analytical tools.
3.Train your teams
You must teach members how to interpret numbers and use analytics and CRM tools.
4. Define what you want to measure
You’ll have access to a lot of data, so it’s important that you define your Marketing efforts and focus on the KPI’s that are important to generate and measure results. The metrics you should measure depend on your goals and your customers.
5.Avoid data silos
Data silos are groups of raw data that are only available to one department in the company. These result in a lack of transparency, efficiency and trust within the organization. To counter this, you must ensure that everyone has access to the numbers.
6. Define KPI's and target audiences
You must define these factors so that you can measure performance and stay focused on the things that show the most results.
7. Use the data
It may seem obvious, but many companies invest in data sources and analytical tools and then don’t use statistics.
Thanks to a data-driven marketing approach, you are able to target the right audience, capture their attention and offer them what they want at the right time, which leads to a bigger Return on Investment.
With the right analytics tools, you can identify where you want to allocate your marketing budget, as you have accurate information on which campaigns had the best impact on brand awareness or conversions. In short, you can allocate your budgets in an informed and effective way.
Furthermore, through the data you have access to, you can understand the copy, visuals, creatives and content that work best for your audience. In other words, you are able to communicate the right message at the right time.
An effective Data-Based Marketing strategy allows you to learn from the data and, through it, improve your marketing efforts on an ongoing basis.