The Data-Driven Marketing Approach

The Data-Driven Marketing Approach

🔥NEW In today's highly competitive world, providing customers with a customized experience often leads to good business results. In order to customize marketing efforts and meet the changing expectations and progressive needs of customers, companies can take advantage of big data. A data-driven marketing strategy can be a powerful advantage in marketing. Here is a brief overview.

What is Data-Driven Marketing? Definition

Data-driven marketing is a type of marketing that uses massive amounts of data, acquired through customer interactions, analyzing company-generated and market data, or from external sources to gain a better view of customers' motivations, preferences, and predict future behaviors to help companies optimize their marketing processes, and in-turn enhances their customer experience, which leads to greater revenue and profits.

What are the Main Benefits Of Data-Driven Marketing? Advantages

IMPROVE AUDIENCE TARGETING. With the right data, you can know exactly who is engaging with your marketing efforts through which channels, which will help you focus your marketing efforts on the right media in the most effective times and ensure that the personalized messages are falling in the right place.
OPTIMIZE CUSTOMER EXPERIENCE. Using big data helps to provide more insights into what areas need improvement. You can evaluate and adjust as necessary so that the customer experience is optimized.
IDENTIFY THE TYPES OF OFFERS THAT CONSUMERS MOSTLY RESPOND TO. This allows you to focus your marketing efforts on projects that will offer a high ROI and are of the highest value to the consumer.
MAXIMIZE THE EFFICIENCY OF MARKETING EFFORTS. By reducing wasteful spending, improving resource allocation maximizing ROI, and supporting the marketing mix elements as it improves their interactive engagement with individual prospects.
INCREASE PERSONALIZATION. By connecting with the right target markets and delivering more personal and meaningful messages. Therefore enhancing customer-centric marketing.
SUPPORT PRODUCT DEVELOPMENT. By reducing the risk of product failure through a better understanding of what consumers would like to see in future products and by providing secure pricing options.

WHAT ARE THE CHALLENGES OF DATA-DRIVEN MARKETING?

COLLECTING THE RIGHT DATA – There is a huge amount of data, but turning it into insights is not easy, therefore, it is important to have the right marketing tools and experience to gather and analyze the correct data which will be most effective and beneficial for data-driven marketing.
INTERPRETING DATA – You must understand the data collected in order to know how it can be used effectively.
LINKING DATA – You must link data to form a cohesive 'big-picture' to help you determine how successful the strategy is. If certain data cannot be linked to other data points, there's a good chance that the information is irrelevant and not beneficial to the strategy.
TIME AND EFFORT CONSUMING- Data must be available to all departments in order to be able to analyze it and use it in marketing strategy, but applying this process requires effort and time.
REDUCE CREATIVITY - The intense focus on using data in the marketing decision-making process can come at the expense of creativity, depending on how marketers choose to leverage data-derived insights.

⇒ Please share any experiences or further recommendations with respect to Data-Driven Marketing. Thank you.

Resources:
- Erevelles, S., Fukawa, N. And Swayne, L. (2016), "Big Data consumer analytics and the transformation of marketing", Journal of Business Research, Vol. 69 No. 2, pp. 897-904.
- Camilleri, M.A. (2019). The Use of Data-Driven Technologies for Customer-Centric Marketing, International Journal of Big Data Management.