Posted: 27 Jun 2018 Contributor: Lana Davidoff
How to Create a Data-Driven Digital Marketing Strategy
Once upon a time, marketing meant putting up a billboard or printing an ad in the newspaper; but the times have changed and this fairy tale has gone digital. Modern technology allows us to know specifics about today’s consumers, and with a data-driven strategy, that information can be used to your advantage.
Before we get into exactly how to create a data-driven digital marketing strategy, it’s important to know why you should create one at all. As someone trying to grow your business in an increasingly competitive economy, you’ll want to use your resources only on prospective customers. Updating your approach will hone your digital campaign, allowing you to interact with the most promising users for your product, thereby offering a very cost-effective strategy. Moreover, utilizing data-driven marketing tools will not only ensure that you keep your own profitability in mind, but also that the customer recognizes how committed you are to his or her satisfaction.
Still not convinced? Well, success rates for a data-driven marketing agency when compared to others are striking. As Forbes reports, “companies who adopt data-driven marketing are more likely to have an advantage over the competition and increase profitability. In fact- they are six times more likely to be profitable year-over-year.”
So, by now you may be asking yourself: what information do I need, and how can I use it? I know, it seems overwhelming! But I’ll break this down into a few steps, and I’m confident that with the help of a digital marketing agency, you’ll get the hang of it in no time!
Let’s Break It down
To create a comprehensive data-driven digital marketing strategy, you’ll need to find out as much as possible about your consumer base and anticipated audience. What are the current trends? Which demographics are buying which products? Which of your products are the most popular? You can gather such information by studying data about search trends, conducting phone interviews, or even publishing surveys to guarantee that your finger is on the pulse of consumerism. Understanding the landscape on a greater scale will provide you with an arsenal of updated knowledge to use in your new marketing strategy.
Know Your Audience
When modern technology offers you the opportunity to peek behind the curtain of consumerism as a whole, TAKE IT. By using customer relationship management (CRM) software, you can see your customers’ contact info, including their name, email and phone number. Moreover, seeing the consumer base as a group individuals rather than a single unit has led to the development of marketing automation software; those programs take the information gathered from CRMs and create personalized marketing campaigns, which are exponentially more successful.
Segment Your Audience
Once you understand your audience as a variety individuals, you can then market to them based on their specific characteristics. On average, we receive between 300 and 3000 marketing messages a day, but can only retain a maximum of three. Consequently, if your strategy isn’t appealing to them, you will have wasted precious resources marketing to someone who doesn’t even remember your message!
To avoid getting lumped in with the majority of generic advertisements, pique your consumers’ attention by advertising something you know they’ll like. Suggest products similar to ones they’ve already bought, or products that may go along with their recent purchases. In other words, don’t advertise a men’s suit to a young woman who has only bought strappy shoes and purses! Use the data at your disposal to market with intention and purpose.
Decide on the Medium
How will you reach your audience? Should you send an email, start a social media campaign, promote an ad, create a video project, and print a pamphlet? These are only a few possibilities, which is why understanding your audience is so important. For instance, a younger consumer base may be more accessible through social media, while adults might be used to checking their email frequently. Even more specifically, CRM software allows you to see how each individual person usually responds; maybe some people fail to reply to the physical mail you send them, but always open your emails. Using this information to your advantage will optimize your marketing strategy and boost your profits to new heights.
Check in Frequently
If your progress seems to suddenly plateau, don’t panic! It’s important to keep analyzing new data and tweak your marketing campaign to reflect the changing trends. Making sure that your information is up to date will ensure your progress and increase your return on investment (ROI). In fact, a VB Insight Report has found that a data-driven strategy produces an average ROI of 224%! I know – almost unbelievable, right? Just remember that in order to get to that level of success, it will likely take some reanalyzing, restructuring and a lot of patience.
Have Reasonable Expectations
Rome wasn’t built in a day, and neither was any successful company. Overhauling your marketing strategy is a daunting task, so don’t panic if progress is slow; just allow your new strategy to do its job! It might take a few weeks or even months to start seeing meaningful results, but have confidence in yourself – you’ve done a great job.
Any good digital agency will tell you that consumers have less time and less patience than ever. They are tired of being bombarded by thousands of generic ads that don’t interest them at all; so in order to increase your profits and keep your SEO services up to date, you’re going to need to appeal to them on a personal level.
Having marketing tools in your toolbox is the most important step in the acquisition of new customers and retention of old ones because you’ll be able to use valuable information to market efficiently. In short, by implementing data-driven marketing strategies, you’ll be able to talk to the right people, in the right ways, about the right things.