There is no doubt about the fact that marketing has become more data-driven than ever before. The popularity and growth of tools such as analytics is testament to the manner in which data is playing a much more active and proactive role in shaping and readjusting a business’ strategic goals and objectives. This has led to the rise in data-driven marketing, which, can offer numerous advantages for businesses and allow them to achieve significant growth.
Marketing activities that are influenced by concrete data ensures it meets customer expectations and leads to higher chances of financial growth. In this blog, we will explore what data-driven marketing is, what it consists of, and what are some of its benefits.
What is Data Driven Marketing?
The term ‘data-driven marketing’ speaks for itself; it is any kind of marketing decision that is influenced purely by solid data. The data comes from various innovative tools such as ERP, CRP, business intelligence and analytics tools such as Data Mining software. These tools can collect a substantial amount of information, providing managers with a rich understanding of trends and patterns in customer buying habits, customer age groups that are most profitable, whether shopping preferences change according to key variables, such as gender or family status, and so on.
A business does not need to invest in highly innovative tools in order to gather data. Methods such as online surveys, social media, and consumer feedback from interviews and other offline methods can also be used to inform marketing decisions.
The importance of data-driven marketing is particularly important in an age of cloud computing and Big Data technologies, in which data collection and data-sharing are causing a radical shift in the way businesses operate and form relationships with customers. Clorox, for example, is one of the companies that are transitioning towards a data-driven marketing structure.
Data, hence, is the mediator and focal point behind much of a company’s success and competitive advantage. Companies that choose to give second preference to data in their marketing decisions will inevitably be left behind; this is why basing all business and marketing decision on data is crucial.
How Data Driven Marketing can add value to your business?
Marketing that is based on valuable and reliable sources of information lead to a range of benefits for businesses. Firstly, it allows companies to become much more customer-focused through which they can develop closer and long-term relationships, enhance their brand appeal, and lead to a competitive advantage over rivals.
Deciding what price consumers will be willing to pay and what channels of distribution will most resonate with key customers can go a long way in winning their expectations and establishing a good first impression.
Secondly, data-driven marketing will be beneficial in reducing risk of marketing campaigns that are conducted at a large-scale since it will be backed by accurate data. As a result, companies can operate with greater confidence knowing that their marketing strategies and goals conform to the tastes and expectations of their customers, as well as the latest trends. Marketing, thus, is not only accurate, but also up-to-date.