Data-driven marketing

The world is oversaturated with information and drowning in numerous data. On the Internet, you can find information on any topic, about everything and everyone, and trying to digest it is simply impossible. But there is also a positive point. Possession of information helps companies reduce costs, increase revenues and increase customer loyalty.

Any marketing campaign aims to reach its target audience, using data as a guide in finding customers. Addressing your target audience, as opposed to single shots in the air, reduces the risk of losing advertising revenue and wasting time, which, as we know, is also money.

The reality is that no matter what industry you work in, you can’t just rely on intuition or guesswork about what your customers want. At every stage of your marketing campaign, you need to get data and track the numbers. 

Today we'll look at how data-driven solutions can help businesses grow and navigate their chosen industry. 

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What is data-driven marketing?

Data driven marketing is a tool for optimizing advertising and brand communication with the customer based on the information received. Marketers use data about the target audience to analyze and predict their needs, choices, decisions, and behavior in the future.

Customer insights allow you to create personalized marketing strategies to maximize the effectiveness of your advertising. Companies collect customer data, analyze it, identify trends and patterns. And then use this information to create ads and effectively customize the display of a specific target audience.

Benefits of Data-driven marketing

Data-driven marketing allows you to:

• get to know your customers better, study their needs and offer the most relevant product or service;
• effectively choose platforms for advertising;
• Set a target for a specific audience, reducing advertising costs.

KPIs in digital marketing

Key performance indicator (KPIs) is a way of measuring the performance of a business. Key performance indicators measure the success of a company and evaluate the short-term and long-term effectiveness of a business. From a digital marketing perspective, working with KPIs helps improvecoverage,involvementandbrand authority.

One of the key benefits of digital marketing is the ability to measure and track marketing results with high accuracy. Data eliminates the need to make assumptions: reports indicatekey performance indicatorsthat need to be analyzed when running a company: 

• number of unique visitors;
• bounce rate;
• click rating;
• conversions;
• cost of engagement;
• income;
• engagement on social networks.

But before you can start tracking your progress and measuring your success, you need to define your business and marketing goals. You can't achieve a goal that doesn't exist. 

Here are some typical goals that business owners set before launching an advertising campaign:  

• attracting new customers;
• increasing customer loyalty;
• percentage increasecustomer retention;
• improving service quality and customer satisfaction;
• increase in attendancesite;
• reduction in the rejection rate;
• increase in clicks;
• improving brand awareness;
• increasing the number of mentions on social networks;
• improving search engine rankings.

Having defined a goal, you create an action plan and with the help ofmarketing KPIstrack performance.

 The relationship between Data driven marketing and KPIs

The Internet age has led to information overload, but it has also given business owners the ability to collect and use data to their advantage. You can see how users interact with your site's content, which design elements and calls to action are most responsive, and which marketing options are most effective.by emailworks for your audience, etc.

How to create a data-driven digital marketing strategy?

Planning a data-driven marketing strategy takes time, energy, and a centralized analytics tool like a business dashboard or Google Analytics. The algorithm will be something like this:

1. Goal setting

There shouldn't be many goals. First, to avoid being scattered, and second, to better track effectiveness. When analyzing individual indicators, don't forget about the big picture - this is the main thing, even if individual indicators sometimes sag. 

Determine the financial possibilities for investing in the campaign. They should correspond to the goals. Unrealistic goals are a path to nowhere. 

2. Data collection

It all depends on your capabilities. You can create different departments to process different data, for example, a team responsible for social media promotion for social media analytics, or you can limit yourself to a small team and try to automate processing as much as possible.

Data can be loaded automatically by connecting different accounts. For example, Google Analytics or Facebook Ads are easily integrated into tools like AdEspresso.

Sometimes it's worth manually checking the results on each platform to keep your finger on the pulse. 

3. Evaluation and verification

To adjust your strategy in a timely manner and meet changing customer needs, it is important to analyze and double-check the data obtained during the campaign. To effectively checkA/B testingOnly by observing and evaluating customer behavior can you understand what works best.

There is a tendency in marketing to completely write off a campaign if it produces mediocre results. It is more effective to keep the tools in place and replace the ineffective ones. And sometimes it is enough to simply adjust the existing approach.

Finally, you need to remove barriers that prevent the buyer from making a purchase. The site should be intuitive, the purchase process as simple and fast as possible. Take care of qualityhostingto ensure fast page loading speed and site responsiveness, protect customer data by purchasingSSL certificateLook for ways to simplify and eliminate any obstacles that may slow or limit sales.

Data-driven marketing tools

The correct use of data-driven marketing tools can significantly facilitate the process. Here are some of them to consider: 

• advertising/retargeting: Google Ads, Rocket Fuel, AdRoll, Adespresso;
• analysis and reporting: Databox, Tableau, DataHero, Optimizely;
• content: SEMRush, Buzzsumo, Canva;
• customer relationship management (CRM): Salesforce, SAP, Sugar;
• marketing automation: Marketo, Oracle Eloqua, Mailchimp;
• social networks: Facebook for business, Oktopost, Mention;
• website analytics: Google Analytics marketing platform, Alexa, Mixpanel.

Or you can choose a reliable marketing agency and entrust the process to them.  

Resume

Although data-driven marketing is all about numbers, it is built for people and is focused on satisfying their interests. Digital marketing helps you build closer relationships with your customers and continuously improve your results.

The abundance of data available and the availability of tools to analyze it make data-driven marketing simple, accessible, and effective. 

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