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Data Driven Marketing definition and explanation by Duel - Performance Marketing Agency. Read on to discover data driven marketing best practises.
Duel Marketing Marketing Agency - Data Driven Marketing

Data Driven Marketing

  • April 14, 2021
  • 12:56 pm
  • Duel Marketing Editorial Team

Effective Data Driven Marketing.

Data driven marketing is changing the way we deal with our marketing solutions allowing businesses to harness the power of their data with dramatic effect, driving strategic and investment decisions. It is better described as the procedure by which stakeholders can make informed decisions based on insights to form future predictions, noteworthy choices justified by the numbers.

The goal of information driven advertising is to enhance users experience and improve customer experiences, their are many other benefits and reasons but this is the primary focus.

Whenever brands and businesses truly understand the who, what, where, when and why of customer behaviour and identify with their proposition, they can settle on better choices. These choices may influence any digital developments from the planning of campaigns, their associated channels, level of customisation, segmentation and personalisation.

Advantages of Data-Driven Marketing.

To provide more clarity regarding digital data marketing we have highlighted the key advantages, as well as some of challenges below:

  • Multi-Channel Optimisation.

    No only are businesses now able to more accurately distribute their marketing budget across their channels but these channels are able to work effectively together. Segmentation and messaging can now be aligned perfectly with great effect. Has a customer abandoned a shopping cart, no problem, encourage their engage again with a retargeting display campaign or email communications.

  • Customisation, Personalisation & Segmentation.

    The key to all communication is providing the right message, at the right time, to the right person and this is a huge benefit for data marketing, when used effectively. Through a better understanding of the customer profile, behaviour and habits, customised messaging and group segmentation drives higher engagement.

  • Improved customer experience.Feedback, product and service reviews are regularly encouraged to help businesses improve their customers experience of their proposition. Using data can dramatically improve a user experience of a product, service or brand. An enhanced customer journey not only helps short term goals but builds long term customer retention and loyalty as well.

  • Efficient service & product development.

    Using data for product and service development allows brands and businesses to better understand their target audience needs, priorities and requirements. Products can then be tailored and tweaked for specific user groups and markets.

Data Driven Marketing Examples.

There are seemingly an endless amount of data driven marketing use cases and scenarios. The advertising messaging we are shown, the emails we open, the offers we are sent are all optimised through data orientated advertising. Due to the large volumes of available data and insight to businesses leading campaigns, and everyday communications, with digital data is the status quo.

  • Dynamic Advertising.

    Multiple channels can be coordinated to engage your audience with extension personalised messaging. When a customer updates details on one channel this can be reflected across all channels, product preferences, service levels, reviews and more. Using data across multiple channels generates more insight into consumer habits and traits, this information can again be harnessed to deliver engaging advertising.

  • Retargeting advertising.

    Perhaps the biggest win in the digital marketing universe, retargeting allows brands to entice those customers to use a brand again having previously used a service or product. Highly effective since this something the user has already invested in. Typically this data offers highly relevant insight, customers may be retargeted with tailored messages, products and deals based on their previous purchases.

  • Paid Search Optimisation.

    Analyse your target audience by the keyword groups they search for, review the competition and position your business with relevant search terms. This encourages highlighy engaged users looking for your content directly to your brand website.

  • Email campaigns.

    Both the distribution and content of these communications can be highly effective when driven by quality data.

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Difficulties of Data-Driven Marketing.

There are many significant benefits to data driven advertising, like the few listed above, however like any significant digital practice, there are some difficulties.

  • Analysing the data.

    With some much data to hand these days it can be very overwhelming to even know where to start. For this reason it is often highly beneficial to involve data analysts and strategic marketing planners to make the most worthwhile gains from the information available.

  • Coordination of channels.

    With specialist skills dedicated to each marketing channel it is now more important than ever to stand back and see the bigger marketing picture. To synchronise the activities of multiple departments can often be challenging for companies, especially when this previously had not been a major requirement for them.

  • Dedication.

    It is most likely that a brand will either take a data driven approach to their marketing efforts, or not. Generally once the benefits have been realised this is a mater of course for each investment but initially this can cause issues particularly for larger scale organisations.

  • Information led marketing – Priority.

    One of the most significant challenges data marketing faces is the where to focus efforts and energy once it has been employed. For instance if you focus all your markeitng efforts and budgets focusing on a single channel how do you know if you’re not missing an investment opportunity somewhere.

Best Practices for Data-Driven Marketing.

The key to data driven marketing success is to make relevant conclusions from accurate data. The more data a company is able to analyse the greater the understanding of the marketing predictions and return on investment.

To summarise, data driven marketing makes it easier than ever to deliver the right message, to the right audience, at the right time, the holy grail of marketing!

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