The saying goes: “You can’t manage what you can’t measure”. It stands just as true today as ever. I mean, just think about it: It’s pretty hard to determine if a strategy is successful or not if there are no defined metrics or Key Performance Indicators (KPIs). Today’s modern customer demanding personalized and relevant experiences, the so-called “spray and pray” tactic can no longer be applied. In this article, we will highlight several data driven marketing strategies that will help your business increase its return-on-investment (ROI) when it comes to marketing and in doing so lay a foundation for a data driven marketing strategy.
What is it: Data Driven Marketing
Data Driven Marketing is a marketing principle that analyzes data from customer interactions, campaigns, third parties etc with the goal of gaining insights into the behaviours and preferences of the customer. It aims at enhancing the customer experience by learning what makes them tick and working it into your marketing strategy. It simplifies the process of creating automated campaigns. This allows marketers to focus their time on the creative side of their business. Data driven marketing is one of the more transformational and revolutionary marketing occurrences in a while. Ultimately, data driven marketing’s aim is to optimize companies’ marketing efforts and increase return on investment.
Why you should use it
A data driven marketing strategy has many benefits. For one, ad spend and marketing messages are optimized based on facts. They will be shown only to the appropriate targets for the marketing campaign. While a one-size fits all marketing approach might work for some big brands, those are outliers and it is more beneficial for your business to make your marketing efforts to be more granular so that it resonates better with your different clientele. The younger generation especially appreciates personalized marketing content. Over half of millennial consumers (age 18 to 34) consider themselves less interested in a brand’s products and services if its content isn’t relevant to them.
Your audience has preferences that guide their thinking and behavior. Marketers like yourself can steer these. Content and marketing tailored to your specific customer segments builds a lasting bond between you and your clients. That’s why it’s imperative to generate data and using it to your advantage by applying it your future marketing campaigns.
Collect and Segment Datasets
The collection of data might seem like the main contributor to getting to know your audience. But the data also needs to be representative of your customers. You have to know your clientele inside out. Once you do, you can trust and proceed to manage your gathered data. The data will be ever-changing. This means you need to keep an eye on it throughout and develop a short term plan, as well as a long-term strategy.
Obviously, not every member of your target audience holds equal value to you. Different customer groups exist within your wider target audience, and it’s up to you to define those segments. There are lots of different ways to divide your audience. The most straight-forward practice is to divide your customers by demographic, but you can also divide them by other psychographic factors such as values or interests.
It can also be useful to prioritize segments. Segmentation will allow you to target each customer group at a specific time with their specifically preferred content. It is particularly important with email marketing, social media marketing, and of course, retargeting, which we’ll dive into next.
Retarget your audience
You may already be using effective forms of online marketing such as content marketing, paid search, or social media ads. However, retargeting is an important complementary strategy to add to these. Retargeting, also known as remarketing, is a form of online advertising that helps you keep your brand in front of potential customers after they left your website. The majority of websites only convert 2% of web traffic on their first visit. Using retargeting, you can nurture your previously bounced traffic into conversions. Here’s a stat that will help drive the point home: retargeting ads are 76% more likely to be clicked on than a regular old display ad.
So how do we go ahead and retarget potential customers then? A good initial step is to use copy that combats their initial sales objections. The implementation of cookies allows businesses to gain an insight into their traffic’s behavior and preferences. Remember, these people already were on your website, they just did not convert. Now you can use a retargeting ad to convince them of your brand and get rid of their final hesitations. If you’re not completely certain about what objections your potential clients might have you can always get in touch with your sales colleagues. Since they are “on the frontlines”, so to speak, they will probably have invaluable insights into the concerns and no-go’s that prospective customers voice. Another way to determine pain points that your customers believe to have with your product or service is to scour through reviews about your business.
While retargeting campaigns have huge upside, setting them up can be a challenge which is why it makes sense to get in touch with an expert.
Fear of missing out (FOMO)
Another tactic that you can use to capture the valuable attention of prospective clients is to use discounts and limited time offers. Comparison shopping has changed dramatically since the advent of the internet. Now shoppers can compare prices in rapid succession in order to find the best deal. You can mitigate this with a deal-sweetener such as a limited time offer or discount. Using these subtle techniques, the prospect’s fear of missing out (FOMO) is triggered and interest in you and your services will be reignited.
Compared to traditional marketing, data driven marketing is proven to increase clicks as well as conversions. Ranging from the initial collection of data via cookies, to the retargeting phase, be sure to follow through with this transformational marketing strategy as it will be hugely beneficial for your business.