Any business’s success depends on a good relationship with customers. Historically, the company-client relationship has been built in quite particular ways. From ethnographic studies to satisfaction surveys, the exercise of approaching clients and better know their wishes and fears was in constant transformation as new technologies emerged.
In recent years, a new paradigm has been presented to companies: all online activities, companies have at their disposal a huge amount of data (reaching 40 trillion gigabytes by 2020, according to a study by the Gartner) but found it difficult to extract the necessary intelligence from them.
The biggest challenge, then, becomes no more the amount of information that the company has of its customers, but how to use that information appropriately. For marketing and sales, a methodology has shown the way, and many companies have based their strategies on it: Data-Driven Marketing.
What is Data-Driven Marketing?
Data-Driven Marketing is a methodology that aims to build marketing strategies based on insights coming from analyzing Big Data. This data, collected through interactions, engagements, and connections, is the foundation for the construction of campaigns and approaches, significantly increasing the company’s conversion rate.
According to eMarketer magazine, 40% of brands plan to expand their budgets for Data-Driven strategies. Makes sense. In a recent report by Certain, had a 10 to 20% increase in ROI after using Data-Driven strategies.
Why Does Data-Driven Marketing Work?
1. Easy, functional and effective personalization
Large amounts of data enable the creation of amazing campaigns segmented, made to dialogue and capture small niches. A survey by Monetate companies that met their sales targets in techniques in 83% of the time.
2. Decisions based on data
The more you know about the desires and frustrations of consumers, the more effective the propositions of value presented to them will be. Collecting data directs decision-making into a more assertive path, decisively increasing customer satisfaction and return on sales.
3. The Consumer Journey Unveiled
With so many paths, digital and physical, to reach a product and close a purchase, the consumer’s journey gains a plurality difficult to be completely designed by companies. Data-Driven strategies are built on a better understanding of this plurality, enabling the creation of specific content for each step of the buying process.
Real Case: Increasing Retail Sales with Big Data
A Brazilian retail network was in the process of Digital Transformation and saw a promising way to increase their customer database using its WiFi. Implementing Zoox Smart WiFi in their facility, visitors who wanted to access the shops’ free WiFi needed to answer some quick questions about preferences and desires.
Each time they returned, new information was requested, equipping with data the Marketing team. Based on this data, it was possible to run advertising campaigns, targeting specific offers for people with high chances of conversion. This effort boosted offered product sales in such a way that the network of stores chose to use the same strategy in all its environments.