Data-driven marketing intends to personalize and enhance customer experience. It is based on a simple combination of the data you have, and the data you can get, to best analyze, organize and implement the insights that you find. These metrics and data insights are then used to drive maximum success out of advertising campaigns, social media advertising, and other digital strategies.
Each year businesses across the globe reserve millions of dollars for their marketing and advertising spend, and there are big expectations to see good ROI. Data is no secret weapon; what makes the difference is your approach to research and analyze the right trends.
Data-driven marketing is no longer considered an innovative marketing tactic – it has become a business requirement. The last few years have witnessed a seismic shift that has encouraged marketing strategies to revolve around data and analytics.
The benefits of data-driven marketing are:
Better Audience Insights
Data-driven marketing strategies make businesses aware of the demographic and behavioral data of their customers which then plays a crucial role in establishing a robust communication plan. Gaining the right information helps to roll out increasingly targeted campaigns which deliver a better ROI.
Data-driven marketing enables business strategies to reach the right people with the right message at the right time. It allows the company to study their customer behavior in-depth and execute proper segmentation. For an example, baby diaper companies always send their email in the first half of the day, the time when most babies are actually sleeping and moms get enough time to check their emails etc. A study from McKinsey has revealed that businesses those who apply data-driven personalization tend to deliver 5 to 8 times the ROI on marketing spend, which can also reduce advertising cost.
In essence, data-driven marketing is the perfect strategy for using customer information for optimal and targeted media buying and creative messaging. It is a transformational change in digital advertising. The tremendous rise in quality and quantity of marketing data has been followed by an increase in the belief in online advertising and social media marketing in general.