The Many Benefits of Data-Driven Marketing

Every marketing recognizes the importance of substituting gut feeling with cold hard facts in the process of promoting a product. When people hear the word marketing, they may picture a “Mad Men” type of situation,  however, nowadays, that couldn’t be further from the truth. The stakes have been raised with the surge of social media sites, which give their users opportunities to tailor the content they want to see, and because of that, they have become picky about what is shown to them. That is why data-driven marketing is all the rage when examining customer’s needs.

Let’s Start With the Basics

Before we explore the benefits, there is one question that we have to ask, what is data-driven marketing? In the last few years, data-driven marketing has changed from an innovative strategy to a significant part of every marketing campaign. It is based on the approach that the first thing that is done before any campaign is mining collecting, and analyzing data on previous projects and using them to improve the chances for success on new ones. The main goal is to enhance the experience and build trust with the customer so that your relationship will continue in your future projects. There are a number of benefits with this approach, and about 67% of the greatest marketing gurus have put it down as their preferred strategy.

Having Insight into the Full Picture

The first and biggest benefit is the ability to have all of the important information related to your business in one place. The data-driven approach deals with every aspect of the comings and goings of your dealings, including social media presence, SEO, website traffic, content consumption, promotional material, media presence, and many more. This helps you get the full picture and makes less room for mistakes. Transparency with your and your client’s data will also strengthen the bond of trust you have with them and make them more approachable and accepting of new projects and ideas.

Easier Analysis of the Data You Collected

After you mine and sort out the data, you have everything ready for its analysis. Nowadays, every social media site has its own ads-manager or application that helps with having insight into sales, presence, and customer behavior. Having everything in one place will be beneficial if you want to do an efficient and thorough analysis of your content. Having cold hard data in front of you instead of just going on hunches fills the blank holes that simply couldn’t have been filled in the past before this approach took wind. Estimates have become facts, and that is the key to unlocking the path to making real-time decisions.

More Efficient Targeting

Target marketing is the way in which marketer looks and who is taking an interest in their product and advertising. Through it, you can determine the demographic of your audience and even other things, like what device they are using to view your content. It will help you aim for specific groups, which makes your campaign more efficient and focused. It is also more budget-friendly, as your spending is directed at the audience who has a potential interest in your product instead of spending a lot of money on a wider range of audience who may not appreciate it. Some of the parameters which you can deduct through data mining are age, gender, race, profession, income, location of your audience, and more.

Better Personalization

By finding out all of this about your audience, you can find out what attracts them to your product, and mainly your advertising. You will have an easier time creating ads that appeal to the people you are trying to sell to. The timing is also important, and by knowing when to offer what, you will use the full potential of your campaign. It will show you what works and what doesn’t in an unbiased and accurate manner.

More Conversions

Getting more value from a single customer is achievable by cross-selling and up-selling. Cross-selling means offering the product that is related to the one that your customer is intent on buying. For example, if your customer chooses to buy a laptop, you will try to compliment their needs with an offer of a computer mouse. It will make a one-time buyer into a two-time buyer, adding to a score of multiple repeated purchases. Up-selling is similar to cross-selling, except that the offer will consist of offering a higher-end product. Both concepts increase the number of conversions on your website and make more products visible to your customer.

Easier Insight in Customer Experience

With the collected data, you can see how your buyers react to your product and content. This doesn’t just help with bettering your brand but is extremely helpful with website development. Seeing the different perspectives will make you aware of the whole picture, with all its flaws and weaknesses, which will make it easier to be fixed. You will also have the ability to follow the journey from potential to a regular buyer, to observe all the steps, and to later try and replicate them with the rest of your audience. 

Tailor Future Product to the Audience

Customer reviews are also very important when trying to fix the flaws of your product. You will find out what they like and what they don’t and tailor the future product to respond to their needs. Additionally, that will help you get new ideas and freshen up your brand. You will get closer to your audience and have exclusive insight into their thoughts and buying habits. Don’t be arrogant about the feedback; if somebody leaves a negative review, and it is not the end of the world. Learn to use all the information to your benefit and create a successful and popular brand.

Data-driven marketing encompasses all the possible aspects of your brand and helps you promote it as efficiently and successfully as possible. It makes no room for oversights and omissions as it is based on cold hard facts. Also, every piece of data will be used to your advantage. It is the marketing strategy of the future, and it should be a part of every other approach. It has already gone impossibly dominant in the marketing world. The uses of your data that you haven’t even considered possible will be at your feet.

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