If you are not taking advantage of data-driven digital marketing, you are likely falling behind your competition. According to a report published by Search Marketing Standard, more than 75 percent of survey respondents believe the consumer data generated by digital marketing can significantly improve their commercial success. At the same time, more than 50 percent of respondents indicate that their organization or business struggles with the ability to analyze large amounts of data.
What exactly is data-driven marketing and why is it so important?
Data-driven marketing refers to acquiring information about consumer needs, wants, and behavior and then analyzing and applying that information to marketing campaigns. In 2013, the mobile e-commerce market had a value of $43 billion. Mobile traffic comprised almost 50 percent of site visits during the first quarter of 2014. According to a recent digital marketing optimization study released by Adobe, top online marketers are able to achieve more than three times the conversion rates of other marketers because they make a point of investing in data, analyzing/testing, optimizing, and analytics.
Clearly, there is something to be said for data-driven marketing, but how can you implement it and make the most of it?
The primary goal of data-driven marketing is to take full advantage of the opportunities provided by consumer relevant data. In this regard, a data-driven marketing campaign will address technological and strategic elements to drive the marketing campaign.
The techniques used for data analysis and market research in the past are no longer relevant today due to the sheer volume as well as variety and velocity of information that is now available. As the amount of available data continues to escalate, the ways in which such data can be applied are also evolving and frequently include:
· Real-time communications
· Greater insights into consumer needs and wants
· Developing personalized relationships with customers
· Measuring the impact of individual marketing activities & tactics
The simple reality is that businesses can no longer ignore the reality of data and their import in regard to developing effective marketing strategies. You simply will not be able to remain competitive if you do not take advantage of data-driven marketing while your competitors utilize it to identify market opportunities and better satisfy customers, while at the same time doing so at a lower cost.
Simply understanding that data-driven marketing is important is not enough, however. You must also understand how to utilize that information to assist you in tracking and optimizing your marketing campaigns. Analytics serves as the vital link between the data that you procure and the success of your next marketing campaign. The following tips can help you make the most of analytics for driving your digital marketing campaigns:
1. Work on incorporating analytics and metrics into the design of your campaigns as opposed to adding them on the backend. Analytics should be used to optimize your digital marketing campaigns while they are still in progress. You can then use the results to improve the design of your next digital marketing campaign as well.
2. Make it a point to coordinate your marketing campaigns to improve user experience while also accumulating data. By implementing a circular cycle, you can utilize the new information you gain about customers to drive enhanced experiences for them in the future, which in turn can generate more information.
3. It is also important to make certain that you are collecting the right type of data. Understanding how to reduce large amounts of data to a point where it can be applied to individual consumers is often one of the biggest challenges for many companies. Ultimately, you need to gain an understanding of your customer’s identity, values, and needs. You also need to understand how your brand does or does not fit into those elements. By collecting the right type of data, you can gain tremendous insight into your customer’s buying path and behavior.
4. You should also make a habit of conducting A/B testing for all of your marketing efforts. Let the data you receive determine which option you should ultimately show your users. Adobe reports that testing is not a priority for 54 percent of unsuccessful marketers.
5. Use data to develop more targeted messages and provide more relevant content to customers while customers are still actively engaged. For instance, real-time data enhancement can prove to be useful for communicating personalized messages quickly. Such a time-sensitive communication might include a welcome or thank-you email or even a customized Web page that enables you to make more intelligent offers to engaged consumers.
Leveraging data in a real-time manner makes it possible for you to provide improved communications and interact with your customers in a more in-depth manner, thus driving increased future sales and improving customer loyalty.