Data-driven marketing: understand the importance of Data-Driven Marketing in your business!
Data-driven marketing has been gaining more and more space, so you must understand the importance of applying Data-Driven Marketing in companies.
Studies in digital marketing are a constant: if tools understood as “traditional” have changed over the last few years, what about digital marketing, which is dynamic in itself?
It is essential to understand, however, that Data-Driven Marketing – or simply data-driven marketing – is not new: basically, it consists of analyzing information and data collected to make decisions and create personalized strategies for the company’s growth through the optimized and assertive reach of your target audience.
Understanding Data-Driven Marketing
What has changed in data-driven marketing over time is the progressive expansion of the Internet and the consequent emergence (and improvement) of tools that provide total control in the collection and monitoring of this data and also in audience segmentation, enabling the resources invested to be optimized to the maximum.
With data-driven marketing, it is possible to collect data through customer interactions (using satisfaction surveys, for example) and, from there, analyze the information obtained to understand your company’s lifestyle, preferences, behaviors and motivations—audience, and point out trends. By enabling access to such information, data-driven marketing guides planning, purchasing media, and creating creative and personalized messages.
According to Adverity, a vital data-driven marketing platform, personalizing your campaigns can provide an ROI of 5 to 7 times more excellent. Two out of three top marketers recognize that decisions based on data-driven marketing are much more effective than those found on instinct. ZoomInfo further states that data-driven marketing leads to increased conversion and customer acquisition, according to 78% of organizations.
How it was then, how it is today:
Data-driven marketing differs from traditional marketing mainly because, in the beginning, conventional marketing teams did not have the same resources and tools that we have today, so many of the decisions were not data-driven but made based on limited studies. Available on the market then, as well as assumptions about the target audience (trial and error, in practice). This implied investing in many “blind” campaigns because data and information were more restricted.
With the rise and improvement of Data-Driven Marketing, it was possible to interact with customers optimally, offering assertive proposals at the most appropriate times. Furthermore, data-driven marketing allows you to personalize the entire customer experience, segment your audience appropriately, acquire new customers and improve the strategies already being used.
Although advances in data-driven marketing are strongly related to the advancement of the Internet, one of the initial techniques in Data-Driven Marketing precedes its emergence: CRM software (used in customer relationship management) that initially allowed companies and brands to target specific messages to certain population segments.
The challenges in implementing Data-Driven Marketing – and how to overcome them
As we saw previously, Data-Driven Marketing is directly linked to successful business performance, promoting greater customer loyalty and satisfaction and significantly increasing lead conversion and customer acquisition. But, we also know that, besides the advantages, there are some challenges in implementing data-driven marketing in companies.
Data collection, for example, can be brutal because marketing professionals do not initially know how or where to find the data and information, or even because they suffer from the excess of information available, not knowing how to use it assertively. Therefore, it is essential to know which platforms and tools to use to obtain customer interaction information, analyzing them together and separately.
In addition to collecting data, gathering it and keeping it updated is a task that requires dedication, effort and time, especially when you need more automation resources and must work with manual spreadsheets, for example. When you have a marketing dashboard, you will have at your disposal an analysis and visualization platform that connects and concentrates all data sources, displaying the information in order so that you can use it efficiently and assertively.
After all, how do you implement a data-driven marketing strategy?
Before anything else, it is essential to carry out an excellent objective analysis to implement Data-Driven Marketing. This way, you can establish in advance the data you will need to create personalized customer profiles, understanding their journey assertively. In this part of the analysis, KPIs (Key Performance Indicator or Key Performance Indicators, in literal translation) also come into play.
In addition to analysis, it is also important to automate processes as much as possible. For this, you must have intelligent, intuitive marketing platforms and dashboards that integrate different data in one place. It is worth mentioning that the platform must have a collaborative nature so that not only the marketing sector feeds it but also the other departments of the organization, providing information and data about their respective teams.
It is also necessary to be aware of new developments in the market, as not only Data-Driven Marketing but different concepts and resources of digital marketing are constantly changing. Therefore, the idea is to observe the work of other companies and brands that have adopted data-driven marketing, paying attention to market trends and how they progress over time.
KPIs must be monitored periodically, and we must observe whether Data-Driven Marketing follows the metrics and indicators intending to adopt its strategies fully.
Meet Quality SMI, which carries out marketing work dedicated to data-driven marketing!
With more than 15 years of activity in the market, Quality SMI is an agency focused on digital marketing that has always based its actions and strategies on data-driven marketing. We follow Google standards when building websites and developing organic search work, which gives us the expertise necessary to dominate this segment.
Therefore, if you are interested and want to know more about Quality SMI’s digital marketing services, contact us and understand how we can help your company grow.
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