The Need For A Data-driven Marketing Strategy In 2022
In 2021, marketers have access to more data about their consumers and using these insights can drive successful results for a business. For many businesses, it has required an update in the re-modelling of their obsolete marketing processes.
Marketing has undergone a significant shift over the last couple of years. Learning more about customer behaviour has become a numbers game rather than subjective personality profiling. Subsequently, marketers are turning to the most direct and reliable source of information for their marketing implementations; consumer data, having identified a data-driven strategy, is now more important than ever.
Data-driven marketing refers to extracting big data through consumer interactions and engagements to predict future consumer behaviours and ultimately deliver the highest level of return on investment (ROI). A study by Forbes highlighted that 57% of respondents reported increased ROIs by using data-driven marketing campaigns compared to non-data-driven campaigns. Marketers can derive success bound strategies through gaining a deeper insight into consumer behaviours and motives, using data to quantify consumer behaviour like never before.
Data-driven marketing extensively revolves around the use of technological advancements that have enabled extensive data to be collected and analyzed. These advancements have seen an increasing number of marketers focus more on data than traditional forms of marketing. The continual use of data-initiated marketing has increasing benefits and driving a new marketing world with quantifiable results.
It is evident that by adopting a data-driven marketing approach, both businesses and consumers can benefit significantly. Through successful strategy implementation, a data-driven marketing strategy can derive the following:
1. Personalized marketing
Personalization is fundamental to the concept of data-driven marketing, and marketers cannot overlook its importance. It involves delivering individualized content through data collection, analysis, and the use of automated technology to convey the key brand message to key prospective audiences. A study conducted by Forbes outlined 48% of survey respondents significantly valued more targeted campaigns and personalized messaging. Personalization is a fundamental element and boosts sales and conversion rates if undertaken successfully. Businesses can achieve this through curating personalized content and campaigns to relevant customers, boosting CRM immensely.
2. Gaining precise clarity around the target audience
Another key benefit of enlisting a data-driven marketing approach is the opportunity to gain clarity around the target audience. Knowing who your customers are, allows acute and accurate reach through marketing activities, yielding stronger results than other strategies. Customers are central to the concept of producing a data-driven marketing strategy, and being able to identify them accurately enables a refined customer experience to flourish. A study conducted by Forbes highlighted an immense 67% of respondents reporting programmatic advertising has improved segmentation and targeting of its customer, imploring its grand benefits.
3. Refined customer experience and deeper connections with potential customers
With each interaction from brand to consumer, marketers receive valuable and insightful information. This information is invaluable in improving the customer experience and potentially the actual service. Understanding and adapting to the needs of the consumer results in deeper connections and increased brand loyalty that can be highlighted using data-driven marketing. Satisfied and happy consumers are likely to share experiences with those around them, increasing brand awareness and judgement. Furthermore, these experiences correlate to the increase in one’s loyalty and positive association to a brand, positioning the business in a more successful position than its competitors despite their efforts to lure consumers away.
4. Better product development
When a business can identify what its consumers want, the likelihood of success when launching into the market is extremely favourable. Successful and better product development requires a considerable amount of thinking. By taking actionable measures from insightful data, marketers can convert key insights into what customers demand. Companies who understand target audiences can successfully develop well-suited products desired by those directly dealing with the brand, resulting in higher ROIs. Marketers should note that buyer behaviour has significantly changed due to the pandemic’s effects. Such externalities have required brands to adapt and develop the foundation to create products that add value to their consumers.
Data-driven marketing metrics have played a prominent role in shaping the businesses that have survived the pandemic. A new world of marketing has been discovered, leading to more targeted and considered marketing tactics from companies.
If your business wants to develop a data-driven strategy bound for success, speak to our marketing consultants today.