Data-Driven Marketing: How Big Data Generates New Revenue
Any business’ success depends on a good relationship with its customers. Satisfaction surveys and loyalty programs are some examples of engaged relationships. However, understanding customers’ fears and wishes have transformed with the influence of newer technologies.
Every year, companies are having larger amounts of data, but they struggle with extracting the ideal insights. The biggest challenge is not the amount of company information, but how to use that information appropriately. For marketing and sales, many companies are embracing data-driven marketing.
What is Data-Driven Marketing?
Data-Driven marketing is a method that aims to build marketing strategies from Big Data insights. This collected data is the foundation for campaigns to increase the company’s conversion rate.
In a recent report by Certain, companies realized a 10-20% increase in ROI after using data-driven strategies. For million dollar companies, such an increase can justify the investment in data-driven marketing.
Although, some people believe that data-driven marketing might be a bad idea.
The author of Performance Partnerships, Robert Glazer, says “clicks, time spent, and conversion rates only describe what people do, not why they do it. Senior executives are addicted to the numbers and have become dependent on the analytics. This approach fails to understand what truly motivates customers.”
We agree data is very helpful, but it is not always the only thing that will help your business. However, if your business is innovative, we believe a data-driven marketing approach will elevate your business.
“A company can have the world’s best data, but its campaign will fail without good ideas. Use data to supplement strategy–not substitute it,” says Glazer.
So, Why Does Data-Driven Marketing Work?
- Easy, functional and effective personalization
Specific data enables segmented campaigns to encourage dialogue and reveal small niches.
- Data-Based Decisions
The more you know about consumers’ desires and frustrations, the more effective your value propositions will be to them. Collecting data directs decision-making into a more assertive path, which increases customer satisfaction and sales.
- The Consumer Journey Unveiled
With several paths to discover a product and make a purchase, the consumer’s journey can be complex for companies. Although, data-driven strategies builds a better understanding in creating specific content for each step of the consumer’s journey.
Our Last Words
As the adage says, “practice makes perfect” and data-driven marketing is a practice. It is a practice of distilling abundant data to understand how to make offers that people want to buy.
If it interests you to learn more about how data can help your business, download our eBook about getting insights out of data.