The Advantages of Embracing Data-Driven Marketing
A data-driven marketing approach is when an organisation uses customer information to create more effective sales and marketing campaigns.
We’ve discussed the benefits of investing in data management tools and systems previously. However, the next step is fully embracing a data-driven marketing approach to doing business!
Embracing data-driven marketing strategies will benefit your organisation in many ways. This is true whether it’s related to product development, CX changes or key business decisions. Data-driven marketing has these 5 competitive advantages:
1. Product Development Improvements
Using data insights, marketers will continuously get a greater understanding of what elements of products customers are using, what they aren’t using and what they like/dislike.
Research conducted to collect data on product usage aids brands in product planning for the future. This data can be used to formulate or alter new products, services and initiatives.
Data-driven product development research also reduces the chance of product failure. Without this data-driven understanding of what your buyers want, you run the risk of developing a product or multiple products that don’t meet your customers’ needs.
2. Refined Customer Experience
The data and insights gathered from marketing using the different tools integrated into your organisation help create a holistic picture of a consumer audience. A data-driven approach enables marketers to reach new levels regarding personalising and creating a great customer experience.
Not only will data-driven marketing help refine the customer experience, it’ll also improve customer engagement. Customers expect modern brands to use the data collected to create the most relevant and engaging content.
With the right data, your organisation can create the content you definitely know resonates with your customers.
3. Multi-channel Experience
Marketers can use the data derived from customers to create effective multi-channel marketing campaigns. No longer relying on simple email campaigns and integrating multiple channels helps elevate communication with customers.
Over-reliance on a single channel can alienate parts of your customer base. A multi-channel approach however ensures a consistent and appropriately targeted message is received by all customers regardless of the channel used.
Automated multi-channel marketing campaigns are often implemented to allow data-driven ads to be targeted at customers at specific times in the customer journey.
4. More Informed Business Decisions
Data aids current and future business decisions. Without insights to base decisions on, campaigns can lose their way and easily end in failure.
Insights from gathered data are a great way to establish “cause and effect” relationships in business. However, it’s also important to note that data shouldn’t always be completely relied on to make important business decisions.
Data should ultimately act as a strong input into collective business decisions. Data-illiterate organisations are often susceptible to more challenges when attempting to make important decisions. These challenges can cost organisations millions in added costs as well as lost opportunities.
5. Encourages Longevity
Modern organisations are often stuck in their ways when it comes to processes and procedures. These organisations that aren’t willing to change internal processes can very easily fall behind the competition.
Consistently implementing a data-centric approach to your strategies is a great way help create the data-driven culture many organisations strive for.
Employees knowing where you’re the right data is and how they can use it in marketing strategies encourages longevity for the not just campaigns but the organisation itself.
While the implementation of data-driven marking strategies isn’t an easy task, the benefits greatly outweigh the challenges.
Data-driven marketing is essential for succeeding, getting ahead of the competition and thriving in a constantly evolving consumer environment. Do you wish to find out more about the services we offer to improve your data strategy? Be sure to contact us today on +353 1 8041298!