Want to know more about Data-Driven Marketing? In this blog, we’ll fill you in on the following:
- Data-Driven Marketing Defined
- What does it mean for you and achieving your marketing goals?
- How do you get the data for Data-Driven Marketing?
- Can too much data be a problem?
- Don’t allow this to fool you! Test your thesis.
- Data-Driven Marketing Facts
Data-Driven Marketing Defined
Simply put, Data-Driven Marketing is using data and data-driven analysis to tailor your interaction with your customers in a personalized and meaningful way. Using the data you have on hand instead of a “gut feeling” or “guess” as to what will work in order to cater to what your customers really want and need. Effectively it makes the customer experience a more personalized and expectation-fulfilled one.
“Data-driven marketing uses big data to inform all marketing decisions, from creative assets to campaigns.”
What does it mean for you and achieving your marketing goals?
It means taking a process that is shown by your data to work, and being able to consistently replicate it to create more positive results. By simply using the data, you can set the rest of your campaign up for success. Similarly, the same goes for any negative results: you know what to avoid and/or not include in your marketing campaigns. This allows you to confidently engage the right customer at the right time.
Another benefit of Data Driven Marketing is the ability to adapt your strategy at the earliest possible chance. As the data comes in, changes can be made to correct the campaign as necessary. In a modern market environment that is changing faster than we’ve ever seen, this is more crucial than it’s ever been before.
”You can’t manage what you can’t measure.”Peter Drucker
How do we get the data for Data Driven Marketing?
The advent of Data driven marketing created a huge need for customer data; and where better to find that data than CRMs (Customer Relationship Management Software) like HubSpot. They are the perfect applications to get the data needed to implement a data driven marketing strategy. The volume, variety and velocity of data that is collected, organized and available is extremely beneficial. The 3V’s almost always associated with the critical qualitative aspects of successful Big Data analytics derivatives.
Underpinning this data however, is the need to ensure that Data insertion is timely and accurate. This means constant application by your sales teams. Similarly, the availability and accessibility of that data is of equal consequence. Fortunately the evolution of Hubspot’s APIs is making this increasingly appetizing for technology solutions providers and smart marketers to leverage in the quest for an accurate and timely Data Driven Marketing Strategy.
Need help organising your data into reports and dashboards?
But the story doesn’t end there. HubSpot gives you all the data you need right at your fingertips. Though what you do with the data and how you use it to your advantage, makes all the difference. The ability to use this information over the Marketing, Sales and Service stages of your customers’ journeys is where the rubber meets the road in this strategy. That information is best exhibited in the form of dashboards and reports, built with your sales and marketing decision needs, exposing strengths, weaknesses and the need for change in your marketing strategy.
Can too much data be a problem?
You have all this information that in theory can be used to create Reports and Dashboards. However, what you really have is a data swamp… a bundle of metrics that aren’t very useful by themselves. Ensuring that your data is normalized, well indexed, filtered, structured, correlated, contextualized…. In short, well groomed – is no easy task. It’s usually best left to the experts, or at least those that have the tools in place to manipulate the data for useful, informative ways. These tools can let you know exactly how well your campaigns are going but only if the reports and dashboards give you the exact information leveraging the exact metrics you need.
Each business is unique and often needs metrics that others don’t or won’t use. This is where the ability to create custom reports and dashboards come into play. This gives the power inherent to your unique business right back to you. Don’t let too much data overwhelm you, instead streamline it to show exactly what you want. Similarly, consumers tend to have discriminating tastes, and behaviors – marketing to those behaviors can only be successful, once you have data points to help you understand their sentiment and behavioral patterns.
Don’t allow this to fool you! Test your thesis.
Correlation doesn’t always equal causation, which may require you to dig a little deeper into what is actually the root creator of successful interactions with your customers.
Let’s use a case study as an example. The study identified that poor cell phone signal is not the number one reason that cell phone users change devices. An assumption that the marketeers originally have incorrectly carried with them into their analysis leveraging Big data and big buck$. Upon later inspection of faulty campaigns, it turns out that the social influence of friends and family, is the larger attributer to that decision.
Validate your assumptions of the data. This in turn will help you replicate your success and change the things that are not helping you achieve this goal.
Data-Driven Marketing Facts
It is vital in this day and age to get data, analyze it and then use it to give your customer the best experience personalized to their needs. Thanks to V12 Data, we have the statistics to prove it. 52% of consumers and 65% of B2B Buyers say that they are likely to change brands if they don’t receive communication that has been personalized.
And when it comes to repeat customers, the data speaks for itself: nearly two-thirds of those same B2B buyers, say that it’s acceptable for companies to send personalized communication based on items they have already bought. This means that you’ve got a better than 50% chance that they won’t block your next offering or data solicitation.
But the statistic that really matters here is simple. Organizations that use data driven marketing are 6 times more likely to be profitable year-over-year. Now who wouldn’t want that? All this is possible through data! Data that your business is creating every time you engage and interact with people and organizations on a daily basis. How you harness the power derived from your data, will make a difference to your business outcomes.