Data-driven marketing is the approach of optimizing brand communications based on acquired data through customer interactions and third parties. Data-driven marketers use customer data to predict their motivations, preferences, and future behaviors. Such insight helps develop personalized marketing strategies for the highest possible return on investment (ROI).
While taking a data-driven approach to marketing was once rare, the multitude of niche media channels and evolving consumer expectations have made data analysis an essential process in modern marketing campaigns.
In other words, it’s just as important to understand and organize information from customer experience, while deploying the right marketing tools and strategies to make the most of the data.
Data Driven Marketing vs. Traditional Marketing
In its simplest form, marketing has always focused on two objectives. First, to discover customers’ needs and desires. And then, using that insight to deliver what customers wanted to buy.
- Gaining a deep understanding of the target audience first, then,
- Identifying and anticipating customer needs, and finally,
- Designing strategies to deliver goods promising to solve those needs
Traditional marketing teams rely on market studies available at the time as well as their assumptions about the target audience. Unfortunately, this approach often meant trial and error. Companies had to launch many strategies to find the one capable of achieving their goals.
In contrast, data-driven marketing allows marketers to connect with customers at the right time – and with the right offering. With the data, brands can also measure and improve their strategies in real time. Customer insights are used to:
- Personalize the customer experience,
- Target well-defined marketing segments, and
- Get new customers.
Data-Driven Marketing Trends in 2022
Data-driven marketing, according to 64% of marketing executives, is crucial in today’s landscape. Below are some of the most important trends to consider when forming your strategy.
- Marketers Will Tap Into More of Their First-Party Data
GDPR regulations and other data privacy laws have cut down on marketers’ ability to capture and use third-party data. Search engines also intend to tighten privacy restrictions in the future. In response, marketers are turning to data that they’ve captured from their own audience to use for their marketing strategies.
- More Touchpoints Are Involved in the Buying Journey
Today’s consumer journey is more fractured than ever before – between 20-500 touchpoints depending on the complexity of the purchase, based on a recent consumer journey study from Google. This makes it doubly important to have proper attribution for your marketing channels and touchpoints.
- Consumers Have Higher Expectations for Personalization
Eighty percent of customers are more likely to purchase a product or service from a brand that provides personalized experiences. It’s critical that your data-driven approach unifies disparate channels and creates a cohesive brand experience for each consumer.
- Brand Loyalty Is Fading
Marketers have to ensure that they deliver a seamless experience to every customer on every channel — otherwise, they’re only a click or call away from choosing a competitor. If you quickly connect consumers to the right person to meet their needs, you’ll be more likely to win their business.
- AI and Marketing Automation Are More Important Than Ever
To scale personalization, marketers are depending more on AI and marketing automation. Leading marketers are leveraging AI for everything from optimizing ad bidding to targeting audiences to personalizing web experiences to capturing insights from phone conversations at scale. If you’re not investing in AI now, you’ll soon be left behind.
Data-Driven Marketing Approach: The Future Of The Economy
Data-driven marketing enables marketers to identify what works, what doesn’t, and how to optimize marketing efforts to include the most effective tactics. For this reason, the process allows for faster decision-making and better insights into what the customer wants from the brand.
Here are the benefits of using Big Data in marketing
- Time and Clarity: With an immense database in hand, marketers can quickly filter through critical data and determine the most relevant and accurate information on which to take action.
- Segmentation: Data-driven marketing can also help to segment a target market which helps to ensure that these personalized messages are falling in the right place.
- Personalization: Personalized marketing can help brands connect with the right target markets and deliver more personal and meaningful messages. Needless to say, this helps provide an improved user experience, while placing relevant products or services in front of the customer.
- Customer Experience: Many marketers use data-driven marketing to improve the user experience via user feedback forms or customer surveys to provide even more insights into what areas need improvement.
- Product Development: Data-driven marketing can significantly reduce the risk of product failure, while helping businesses better understand what consumers would like to see in future products.
- Multi-Channel: Big data can be used to reach out across multiple channels and communicate the right message through adverts and content marketing.
To learn more about how data-driven marketing can help with all your sales, marketing, and customer service needs, try SwaysEast for free today. Want to see SwaysEast in action? Request your personal walkthrough.