Data-Driven Marketing: brief explanation

Data-driven marketing is about collecting, analyzing and interpreting data in order to use it strategically for marketing. Data is used to better understand user behavior. Based on these insights, marketing decisions can be made and data-driven campaigns can be set up.

Due to social media channels and the high prevalence of various end devices, more data is available today than ever before. In the age of Big Data, it is important for companies to collect the information that users leave behind online and use it specifically in their communications.

More and more companies are recognizing the relevance of data-driven marketing. 64 percent of companies consider data-centric marketing essential, according to Forbes’ Insights Report on Data Driven and Customer Centric Marketing.

According to an IBM study, companies that know their customers intimately outperform their competitors by 60 percent. No wonder 78 percent of marketers systematically use data. This means the number of companies using insights for data-driven marketing has more than doubled since 2013.

Data-driven marketing is about turning data into insights that can be used to better tailor marketing campaigns to customers’ needs and wants. It’s about better understanding customer behavior and basing marketing strategy on it. To this end, data is collected in a targeted manner at all touchpoints of the customer journey (e.g., social media, online store, corporate website) in order to derive measures from them and optimize them. The challenge is to link the large amount of customer information that is collected online and offline.

Data analysis in marketing can help serve a number of purposes, such as

  • Accurately measure and improve the results of online marketing campaigns.
  • Personalize campaigns and thereby achieve improved metrics.
  • Optimize social media communications.
  • Provide content that is relevant to users.
  • Engage in targeted topic planning in content marketing.
  • Improve customer service.
  • Increase customer satisfaction.
  • Increase customer loyalty.
  • Predict certain events (predictive analytics).
  • make more accurate and faster decisions.

Tools for gaining insights for Data-Driven Marketing

Due to the large amount of data that needs to be linked, data-driven marketing is very complex. Certain tools for analysis and reporting help companies collect, structure and evaluate data. It is essential to look at the right KPIs depending on the channel.

1. tools for web analysis

The best-known tool for web controlling is Google Analytics. By integrating Google Analytics, user behavior on a website can be analyzed and certain KPIs can be recorded. These include website traffic, page views and dwell time. Possible alternatives to Google Analytics are E-Tracker, Matamo and Chartbeat.

2. tools for social media analysis

Social media monitoring and social listening tools can not only help measure relevant KPIs (such as interactions, mentions and shares), but also analyze the tone of posts about a brand and identify trends. In this way, communication in social media can be optimized. Well-known tools include Brandwatch, Sysomos and Vico.

3. marketing automation tools

Marketing automation tools are software programs that combine web controlling and various communication channels. Tools such as Marketo, Hubspot and Silverpop can be used to plan, set up and analyze personalized marketing campaigns. Data is collected from users who visit an online store or landing pages, for example. This means that prospects can be targeted with appropriate campaigns based on their behavior. In addition, marketing automation tools are used for lead management. Social media channels such as Facebook and Twitter can also be integrated into marketing automation tools.

4. customer relationship management (CRM) systems.

Often, data from marketing automation tools is linked to the CRM system. CRM systems are software programs that are used for customer relationship management. In this process, all of the customer’s data, from address to purchases, is recorded in a central customer database. CRM systems such as Salesforce and Sugar help shape a company’s interactions with its customers and provide targeted customer care. They are typically used by sales, marketing, and customer service companies.

With the help of certain tools and technologies, data can be collected for online marketing as well as content marketing to manage digital communications. Data helps to understand the customer journey and provide content tailored to the needs of the customer. Data-driven marketing makes it possible to interact with prospects at the right point in the customer journey. Data can also be used to optimize KPIs along the customer journey.

Data is an important basis for decision-making for marketers. It is indispensable for analyzing and improving marketing performance.

In addition, the strategic use of data can contribute to higher sales. In a survey, for example, more than 57 percent of companies said they had measurably increased the ROI of their campaigns through data-driven marketing.

However, getting to data-driven marketing is a major challenge. Companies need the right tools and employees who can properly manage, interpret and reconcile the data.

The use of data helps companies to act flexibly and to optimize campaigns in online marketing and content marketing again and again. Marketers should therefore routinely use data to align their offerings with user needs.

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