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The importance of data driven marketing

Every single consumer is getting smaller and smaller in a world moving faster and faster, getting louder and louder. And still, never before it was more important to commit your attention to every single consumer. Due to this development data is getting more important. All marketing uses data so why did the term data driven marketing even emerge? And how can businesses benefit from it?

First, what even is data? Is it information yet? They are related but not the same. Data needs to be collected and analysed then it turns to information. Data can be collected primarily or secondarily. Surveying consumers directly means collecting data primarily however tracking online social interactions, web browsing behaviour or online search behaviour may be secondary. Every business needs to collect relevant data about its customers and turn it to useful information which will lead to successful marketing activities.

With the relevant data, a business can create an effective strategy, referred to as data-driven marketing. The term emerged because of today’s digitally connected world where social media and mobile devices have risen and data has become the key to success. You need to understand your customers to know what they want. Officially data-driven marketing is defined as ‘the marketing insights and decisions that arise from the analysis of data about or from consumers’ by the Financial Times.

Now that data-driven marketing should be clarified, let’s have a look at its’ benefits.

  • A buying process is really extensive nowadays. To understand the process starting with the first contact to the final stage of purchasing a lot of data is needed. Data-driven marketing is essential to optimizing the buying process.
  • Advertising is irrelevant if you make a lot of wastage. The key is to reach the right people with the right message at the right time. Again, data is essential here.
  • If done right it certainly helps a business to maximize existing profit.
  • Data can also help you to improve your future performances. For example, if a marketing campaign failed you need to analyse the data why it failed. On the other hand, if a campaign was successful you need to find out why, what have you done differently this time?
  • This marketing strategy rises the level of personalization vastly. If you know what your customer bought in the past, you will likely know what it will buy in the future. With the right recommendation ads customers are can get swayed easily.
  • Target marketing becomes easier if you can separate and group the customers due to the gathered information.
  • Multi-channel ads will help you spread your message beyond just emails.
  • Better product development gets possible because you know exactly what suits your customers.

All in all, data-driven marketing will lead to increased sales, better customer interaction and more personalization. Data is big, getting bigger every day in our fast-moving, connected world. What holds the future in store for data-driven marketing? Improvement can be seen in platforms and technology which leads to better data. Marketers are understanding the data more and more and use it to improve their performance. A survey points out that most ideas come from analysing data. In conclusion, the future looks bright for data-driven marketing and if you haven’t already included this strategy to your daily-business life you should start right now.

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