Have you ever wondered why you see many advertisements which are related to something that you want to purchase at that time? It may look like magic, but actually, there is a secret behind those advertisements. Today, we’ll introduce you to a strategy which is called a data-driven marketing strategy.
What is data-driven marketing?
Data-driven marketing is when marketing teams use the analyzed data to create a strategy. It mostly includes customers’ behavior, preferences, or any up-to-date trend. They gather this information by observing the use of each social media platform or website.
The benefit of data-driven marketing
- Increase customers’ attention
As data-driven marketing uses in-depth information from the customers’ profile, the company will know exactly what customers need. Moreover, it could help the company with the slogan, mission statement, or the goal to increase customers’ attention as well.
- The relevant information
The system will collect the information from the engagement or which product or service that customers prefer, and the company can produce something that relates to customers’ needs. It helps the marketing team to work easier on how to create advertisements, visuals, or media to deliver the right message to customers.
- Better decision
Since you have customers’ data, your marketing team can use it to help in identifying buying decisions. For example, when you know customers’ preferences or understand why they’re interested in those products or services, you will be able to provide the right one that meets their needs. Also, having these marketing strategies will make your teams decide wisely and effectively. Besides, their decisions will be applicable to what is happening in the real world.
The downfall of data-driven marketing
- Privacy intervention
Even though customers allow you to gather data, they may feel insecure at some point, and want to keep their personal information private. As a matter of fact, revealing the scope of data, and elucidating how it’s used can help your customer feel certain. Moreover, it will make your company become transparent, credible, and well-grounded. For example, you should clarify all info that has been collected to them. Plus, you must stop collecting their information immediately if they request it. Don’t forget that data security and the privacy of your customers are high-priority, and can greatly affect the image of your business.
- Difficulty of accurate information
When you accumulate a massive amount of data, it can be hard to extract and sort out which information is really important or cannot be used in marketing analysis. Hence, you have to provide teams with good skills, and appropriate tools such as personnel, software, or infrastructure so as to get the right high-quality data.
One thing that you probably encounter during data-driven marketing strategies is that it’s a time-consuming process. However, you will find out that the results are worthwhile. If you have the appropriate methods, and elaborate plans, it’s not too complicated.
4 reasons why marketers should use data-driven for marketing plan
- Know how best to satisfy customers and customers’ behavior
It’s important to understand the behavior of the target audience who will become your customers in the future, so you should bring data to improve marketing to meet more customers’ needs. Plus, making your customers into customer loyalty will create opportunities for marketers to know more about their target audience. By the way, it not only uses data analysis but also you can use Demographic data to analyze the behavior of the target audience when using social media, including access to the website. In addition, the data that marketers analyze can be further used in personalization marketing by creating new products that are more satisfying to customers.
- Help entrepreneurs develop product and service
Many companies may have effective goods and services, which are useful to users. It cannot deny that if marketers do not use data to analyze the target audience, it may cause sales to not meet the target. For this reason, your products are not in demand in that group of customers. Thus, using data-driven in online marketing will help your brand design products to better meet the needs of consumers.
- Maintain customer relationship management or customer loyalty
Today, everything is driven by technology or called the ‘Digital Era’. Most customers always have a new brand search behavior known as ‘Discovery Generation’ which isn’t attached to any particular brand. They will decide to purchase products and services that can respond to them. Data-driven will help entrepreneurs strategize to better take care of their loyal customers by bringing the behavior of use from the website.
- Able to real-time responses
Data-Driven Marketing enables marketers to reach customers by presenting information, which is content from various sources, whether on the computer screen at the workplace or using smartphones while traveling. Put simply, the target audience can reach your brand anywhere and anytime.
Real-time customer response or instant customer interactions make it easier for consumers to reach your brand. Also, they will have an opportunity to purchase more products from you and tend to change their mind about using services from other brands because they are going to use your service brand.
Now you know about this strategy, it could help you work easier as a marketer. However, you have to consider the downfall and try to fix it as well.
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