Data-Driven Marketing: A new and comprehensive direction for modern digital enterprises

Data is a vital element in a company’s business operations. Based on data and in-depth analysis, businesses will make decisions to build strategies and identify the right customer insights to achieve accurate goals.

The trend of Data-Driven Marketing will be a new direction for businesses and marketers who want to improve customer experience, optimize costs, and maximize profits through the use of data.

Data-driven Marketing – A form of market research in the digital age

Data-Driven Marketing is the activity of collecting data on the behavior, preferences, and behaviors of target customers to create a foundation and provide appropriate directions for marketing activities instead of making decisions based on emotions and subjectivity. Or simply, we can understand Data-Driven Marketing as a market research activity in the digital age. Businesses use advanced technology to collect and observe customer behavior through exchange and interaction activities in the digital environment such as website interactions, social media conversations, purchases on e-commerce platforms…

Above all, Data-Driven Marketing will solve difficult problems in traditional surveys such as honesty, inaccurate data, edited by data collectors or from the respondents themselves in that survey. However, with the support of tools or the use of information technology, businesses will reduce human resources in data collection activities and ensure that these figures will reflect the market more accurately.

Benefits of Data Driven Marketing in Marketing Strategy

1. Build a personalized marketing strategy

Data-Driven Marketing allows marketing experts to build personalized campaigns for each customer. Based on data, marketers have insight into each customer including preferences, behaviors, lifestyles, and online activities on digital platforms. Data-driven marketing helps businesses market at the right time, with the right message, to the right audience.

2. Create a consistent message across all marketing activities

By leveraging data, businesses can expand their reach across multiple media channels. Customer information ensures consistent and relevant messaging.

3. Optimize marketing budget

Data-Driven Marketing helps businesses identify customer insights, specific content, and marketing budgets for each marketing campaign.

4. Effective targeting

Data-driven marketing allows you to target customer groups, making your campaign more effective and saving your budget. Instead of spending money on many audiences who are not interested in your business’s products and services, you can exclude them by exploiting data such as location, demographics, psychology, and behavior.

5. Understand target customers

Through the collected data, businesses can understand customers’ interests and behaviors to target with the perfect message to attract customers’ attention, promoting the business’s purchasing decisions.

6. Develop and improve the quality of new products

Data will tell businesses what customers like or dislike about the product to meet their needs. From there, businesses will adjust, change and develop better quality products or have new ideas, rebranding themselves.

7. Improve customer experience

With the collected data, you can know how buyers react to your products and services. This not only helps improve the brand but is also extremely useful for developing and improving customer experience on digital platforms. Based on customer activities and interactions, businesses will improve and patch the “gaps” in the customer journey. When customers see that businesses care about their experience with the brand, customers will be more loyal and continue to buy next time.

8. Increase the opportunity to upsell and cross-sell products

Based on the data collected from the customer’s purchasing journey, businesses will have many opportunities to increase the opportunity to upsell or cross-sell other products. Specifically, when customers buy a laptop on the website, the system will provide additional suggestions about computer mice, speakers, headphones or accompanying accessories. Therefore, businesses can increase the opportunity to sell other products, effectively increasing revenue.

Difficulties in Data Driven Marketing activities

Data-Driven Marketing brings undeniable benefits to businesses. However, where and how to exploit and use data is still a difficult task for many marketers. Marketers are facing the following problems:

1. Data collection

We always wonder where customer and market data will be collected from, on websites, groups, blogs, or social networking sites? Or marketers are “lost” among a large available data warehouse but do not know how to collect it. As a result, data collection becomes a “burden” for businesses, especially for marketing experts.

To overcome the above challenges, marketers can apply some effective data collection tools such as Website Analytics, Social Network, Tracking Pixels… to make data collection simpler, to create a basis for businesses’ marketing decisions.

2. Update Data

Data must always be updated regularly by hour, day, week or month. If updated slowly, the data may lose value and no longer be suitable for the business’s marketing campaigns.

3. Data analysis and presentation

Data will be just simple words and numbers, worthless if not analyzed and processed in depth. Many marketers still have limitations in training on data analysis and processing, turning data into valuable information for businesses.

4. Data silos

Data is collected and processed in the business but cannot be combined with other data, making it impossible for businesses to evaluate its accuracy. This makes it difficult for marketers to identify market information, internal business information or personalize marketing campaigns.

In the digital environment, Data-Driven Marketing has become a trend, a guideline to help businesses build effective marketing strategies. Hopefully, with the content of the article, Adsmo has brought you interesting knowledge about Data-Driven Marketing. If you need brand consulting, building an effective marketing strategy, please contact us.