Data-driven marketing is getting popular by the day as this approach has many benefits. It has been transformed from an innovative procedure to a fundamental method when it comes to marketing and advertising. Marketers want to ensure that the money they spend maximises their return on investment and want to study the data before launching any campaigns. So let’s look at what this approach means; what are the benefits and the steps to create your very own data-driven marketing plan?
What is Data-Driven Marketing?
Data-driven marketing is the method where brands use customer information to predict their needs, future behaviour and desires to help them develop personalised marketing strategies that have the ability to get the highest possible return on investment for the brand. Data-driven marketers use data collected from various consumer interactions and engagements across social media channels, websites and online surveys to understand their target market better. Based on the data pool amassed, they make predictions about the future.
This type of marketing can give higher return on investment compared with traditional marketing as it allows marketers to connect with customers, study their preferences and understand what kind of content they engage with best. This helps them to optimise the most suitable strategy to reach their target efficiently. Traditional marketing on the other hand involves the risk of trial and error as it is not backed by analytics and customer insights.
How to Create a Data-Driven Marketing Strategy
Now that you know what data-driven marketing is, let’s look at how you can create a data-driven marketing strategy for your brand. Below is a step-by-step guide to help you with the process.
Define Your Objectives
The first step to create a strong data-driven marketing strategy, is to define your objectives for the campaign. Take some time to establish a clear goal for the data you would like to collect. This will help you decide the kind of data you will need to find and where you will get the data from.
Gather the Data
The second step is to gather the relevant data you require, based on the objectives you set in step one. Choose what kind of data you will need to reach your objectives and select the right tools to help you collect that data.
Collect and sort the Relevant Data
In this step, you will need to set up the platform that you have selected to help you collect and organise the data essential for your campaign.
Gain Insights Through Data Analysis
Now that you have collected your data and the data collection platform has tracked the source and organised the essential data, the next step involves studying the data and drawing relevant insights. For this step, you may want to set up a team or use an external resource to help you study the data and draw out the key findings from your study.
Set Up Your Campaign
After studying and analysing the data you have collected from your customer research, you will need to decide on various aspects of the campaign. Based on the data collected, select the best channel to use to reach your target audience, decide on the format, structure and content for the campaign and set everything up for the launch.
Measure Performance After the Campaign
Once you have launched your campaign, make sure you monitor the results and calculate the return on investment in order to highlight them for major stakeholders. Measuring the campaign also allows you to study the results and understand what can be done to improve the ROI in future campaigns.