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Ads permeate all media channels, causing people to pay for ad blockers and subscribe to ad-free services. However, consumers still respond favorably to some ads, and marketing and advertising budgets continue to grow, albeit more slowly than in the past. The key is to know which ads and ad channels will click with the consumers that the marketing campaign is targeting. To achieve this goal, advertisers apply data-driven marketing strategies that reach a campaign’s intended audience with personalized messages that enhance the customer experience. Market research firm Invesp reports that marketing firms that exceed their revenue goals apply personalization methods 83% of the time. In addition, businesses that use data-driven personalization recorded between five and eight times the return on investment (ROI) on their marketing budgets. Here’s a look at five ways data-driven marketing is being applied by companies, and the tools and techniques that help marketers reach their desired audience and effectively deliver their message. What Is Data-Driven Marketing?Understanding what data-driven marketing is begins by looking at the many ways consumer behavior has changed in recent years and the technologies that make it possible to collect and analyze massive amounts of data about customers, markets, and industries. Data-driven marketing applies the latest data analytics capabilities to pinpoint the most productive media buys and to craft creative, personalized awareness about products. Technology Ushers in the Age of Personalized MarketingNew marketing and advertising technologies make it possible to personalize every aspect of marketing. Prime examples of personalized marketing are the product recommendations that Amazon customers find each time they log in to the online shopping service. Digital marketing firm Stirista outlines the steps required to implement a personalized marketing campaign:
Social Media Today describes hyperpersonalized digital marketing as the combination of internet and mobile technologies to harness “all forms of data being used in unison across all marketing channels and customer journey stages.” The goal is to know what the customer wants before the customer does and to move customers from “top of funnel awareness to post-purchase happiness in record time through higher and more effective engagement at every stage.” Techniques That Enhance the Customer ExperienceA Harvard Business Review survey sponsored by SAS, Intel, and Accenture identifies the ability to deliver a unique, real-time customer experience across all touch points as the best way for companies to distinguish themselves from the competition. The study describes three interrelated capabilities that allow businesses to apply analytics and insights to create effective customer experiences:
Customer Value AnalyticsCustomer value analytics is designed to help firms identify which customers are most profitable and which are least profitable. These are among the metrics that customer value analytics applies to determine a customer’s value to the business:
Omnichannel Marketing StrategiesA company’s marketing message must stay consistent as it spans platforms and devices. MarTech Advisor describes the four components of a successful omnichannel marketing effort:
Other Ways to Improve Customer EngagementA challenge for marketing departments planning to implement a data-driven strategy is integrating the variety of data they receive from diverse internal and external sources. Much of the data must be cleaned and conditioned before it can be used, as MarTech Series explains. The customer engagement tech formula allows marketers to assess available technologies in three categories:
Back To Top 5 Data-Driven Marketing StrategiesThe more a company knows about its customers and potential customers for its products, the more successful its marketing efforts. The goal of data-driven marketing is to convert the business’s data assets into sales. Here are five ways marketers are taking advantage of the knowledge they extract from internal and external data sources about their target audiences. Personalize the Customer ExperienceThe best way to get people’s attention is by tailoring content and online interactions based on their demographics, purchase history, online activities, and other information about them. For example, DirecTV created a personalized marketing campaign that targeted people who’ve recently moved, as marketing service Adverity explains. DirecTV knew that people were much more likely to try new services when they moved to a new location. The company combined U.S. Postal Service records of change-of-address applications with a personalized version of its homepage that only those people would see. The result was a greater conversion rate for the personalized page than for the standard homepage, despite the latter offering a $300 gift card for new customers. Coordinate Marketing Across ChannelsA common technique for implementing an omnichannel approach to data-driven marketing is identity resolution. Web marketing firm Acxiom defines identity resolution as “the ability to recognize an entity, be it a person, place, or thing, along with associated relationships, consistently and accurately based on both physical and digital attributes.” The technique attempts to coordinate marketing across channels based on the individual characteristics, interests, and technology footprint of each customer. Marketing Evolution describes a three-step approach to automating an omnichannel marketing campaign:
Use Predictive Analytics to Create an Ideal Customer Profile<By integrating predictive analytics with account-based marketing, businesses are able to target accounts that match the company’s ideal customer profile (ICP). Digital marketing firm Leadspace explains that an ICP allows a business’s sales and marketing teams to seamlessly coordinate their efforts to “guide the best leads through the sales funnel.” An AI-based solution for devising an ICP has three parts:
Apply Big Data to Track Marketing ROIConverting big data into insight requires combining the science of analytics with the art of communicating the resulting insights into actionable intelligence. TechGenyz reports that for every dollar spent on analytics and business intelligence solutions, companies realize an average return of $13.01, which represents an ROI of 1,301%. TechGenyz describes five ways data science is applied to increase the ROI of marketing campaigns:
Transfer Offline Data to Online Environments via Data OnboardingDigital Doughnut defines data onboarding as the process of transferring offline data, such as postal addresses, telephone numbers, and in-store purchases, to online platforms for marketing purposes. Because personally identifiable information (PII) is used to connect data from the two realms, data onboarding entails anonymizing the data before it’s shared. Leveraging offline data helps marketers better understand their businesses’ customers. It can help marketers target potential customers, and enables them to craft personalized messaging based on customer data. Back To Top Back To Top What Do Marketers Use to Analyze Big Data?The following are among the most popular tools and techniques used by marketers to collect data relevant to their marketing activities and convert it into actionable marketing intelligence. OptimizelyOptimizely is described as a “progressive delivery and experimentation platform” designed to enable marketers and other teams in an organization to base their decisions on real-time data analytics. In addition to conducting A/B split tests for websites, mobile apps, and connected devices, the platform supports multivariate testing using client-side JavaScript variation code. Key benefits and features of Optimizely:
Google Analytics, Google PageSpeed Insights, and Google Search ConsoleGoogle Analytics is a free tool that helps businesses understand how customers are interacting with the company’s websites. The service uses machine learning to extract insight from an organization’s data, including which customers are most likely to purchase a product and which have the highest revenue potential. Google PageSpeed Insights generates a performance score that shows how quickly pages run on mobile and desktop devices. It offers suggestions for improving page performance, using lab data to help debug performance issues and field data to capture real-world user experiences. Google Search Console reports on a site’s search traffic by showing which queries lead customers to the site. The service allows businesses to submit site maps and individual URLs to improve their placement in Google search results. Customers can also review the service’s index coverage to ensure that it’s up to date. Adobe Creative CloudAdobe Creative Cloud combines several of Adobe’s cloud-based tools. It’s intended to streamline a company’s workflows and ensure that all of a marketing project’s team members and stakeholders are in sync. Among the over 20 apps in the Creative Cloud bundle are Photoshop, Illustrator, InDesign, Adobe XD for interface development, Premiere Pro for video editing, Dreamweaver for site development, and Animate for creating interactive vector animations. MakeUseOf offers five reasons why Creative Cloud is worth buying:
Crazy EggStirista describes Crazy Egg as a “heat-mapping tool” that creates two-dimensional representations of data. Heat maps represent data values as different colors that illustrate the way customers interact with a company’s website. Crazy Egg calculates page views, the tabs and links visitors click, and other actions to give marketers insight into which elements attract users’ attention and which don’t. Among the analytics tools Crazy Egg offers are an A/B tester for comparing different versions of pages; page editing tools for modifying elements on the fly; and a complete analysis of sites that indicates where site visitors come from, how they navigate the site, and where they’re running into roadblocks. BuzzSumoMarketers need to keep abreast of the hot topics in their product areas. BuzzSumo analyzes the most popular online content related to specific keywords, such as brands, technologies, and hot topics. The Next Scoop describes several ways marketers use BuzzSumo to promote campaigns:
SEMrushSEMrush is a SEO tool that helps marketers gather information about competitors by monitoring their sites for a range of site traffic sources, including direct, search, referral, paid, and social. Marketing service Location Rebel describes the service’s five toolkits:
MailChimpEmail marketing service MailChimp offers a marketing platform designed to help marketers learn more about their target audiences. Among its components are customer relationship management (CRM) software, an audience dashboard to help personalize marketing messages, and tags that can be applied manually or automatically to contacts. Stirista describes MailChimp’s key features:
In addition, MailChimp’s predicted demographics feature forecasts the gender and age of contacts in the campaign’s audience and provides insight into their behavior, including their clicks, purchases, downloads, and other actions. HubSpotHubSpot combines management of content marketing, social media marketing, landing pages, SEO, and web analytics. In addition to a free CRM product, HubSpot offers paid services that include CMS Hub for managing content, Marketing Hub for boosting traffic and increasing conversion rates, and Sales Hub that automates many sales management functions. PCMag.com lists the noteworthy features in Marketing Hub:
Back To Top Data-Driven Marketing BenefitsAdopting data-driven marketing benefits companies by allowing them to craft more effective marketing campaigns, build brand recognition, and enhance customer loyalty. Rather than guessing what people want, marketers can tap information about consumers that they collect from diverse sources to base their marketing decisions on hard data. Improve Media Buying, Customer TargetingData-driven marketing improves the effectiveness of a company’s media buying, targets the most receptive customers, and communicates relevant messages to customers. The combination of big data and AI-based analytics allows marketers to target customers with unprecedented accuracy. Marketing service Criteo describes eight customer targeting strategies:
Continually Update the Marketing MessageTo keep their communications with customers fresh, marketers must continually update the marketing message by tweaking content to gain the attention of the people who are most likely to respond positively. Trew Marketing provides five tips for keeping a marketing message from growing stale:
Back To Top How to Use Data-Driven InsightsThe business intelligence gleaned from data-driven marketing can be used to enhance the company’s brand, track competitors, and optimize pricing. Companies continue to discover how to use data-driven insights in new and rewarding ways. Techniques for Enhancing Customer RetentionData-driven marketing can improve customer retention efforts by making it easy to solicit and act on customer feedback. Marketing service Help Scout presents research-backed customer-retention strategies:
Using Machine Learning and AI to Automate Marketing OperationsMachine learning and other AI techniques are being used to automate some marketing operations, identify promising new market segments, and improve customer service in response to changing preferences and market conditions. Alan Sharpe describes three ways machine learning improves marketing automation:
Back To Top Putting Data-Driven Marketing into PracticeIn the coming years, all marketing will be data driven. Companies that are able to take advantage of the intelligence that can be gleaned from the information they collect about their customers will have an edge over the competition. More importantly, the brand loyalty and affinity that data-driven marketing encourages will pay dividends well into the future — at least until the next transformational technology arrives. Additional Sources: Econsultancy, “What Does Data Driven Marketing Mean to Marketers in 2019?” Forbes, “How to Improve Customer Experiences with Real-Time Analytics” Forbes, “Six Reasons Why Investment in Analytics Is Essential” Forbes, “The Rise of the Data-Driven Marketer: Why It’s Beneficial and How to Hire One” Instapage, “How to Plan and Create the Perfect Omnichannel Marketing Strategy” LiveRamp, “15 Minute Guide to Data Onboarding” Lotame, “6-Step Guide to Creating a Successful Data-Driven Marketing Campaign” Marketing Insider Group, “Use These 8 Competitive Intelligence Tools to Crush the Competition” Marketing Insider Group, “Why Your Marketing Needs to Be Data-Driven” Nielsen, “Data-Driven Marketing Is in the Details” Phocas, “Customer Value Analytics for Retaining Profitable Customers” Phonexa, How to Create the Best Data-Driven Marketing Strategy Stirista, 7 Crucial Data Driven Marketing Trends (for 2019 and Beyond) Stirista, Top 25 Data-Driven Marketing Tools to Boost ROI in 2019 Survey Anyplace, “4 Recent Data Driven Marketing Trends and How to Use Them” The New York Times, “The Advertising Industry Has a Problem: People Hate Ads” Thunder, “What Is Data Driven Marketing? Definition, Examples and Case Studies” WSI, Using Data Driven Creativity to Enhance the Customer Experience What is marketing How important is marketing in a business?The importance of marketing for your business is that it makes the customers aware of your products or services, engages them, and helps them make the buying decision. Furthermore, a marketing plan, a part of your business plan helps in creating and maintaining demand, relevance, reputation, competition, etc.
Which of the following describes a difference between the marketing concept and the selling concept?The marketing concept concentrates on the buyer's needs and then the means are identified to meet out those needs. Therefore, the customer is regarded as the king of the market. On the other hand, selling concept stresses on the needs of the seller and so, it is the seller who rules the market.
How do market demands relate to needs and wants?In short, needs are things that satisfy the basic requirement. Wants are requests directed to specific types of items. Demands are requests for specific products that the buyer is willing to and able to pay for. In a consumer market examples are usually very clear to identify.
Why is good marketing management critical?Why is Good Marketing Management Critical? Because its role is to inform businesses on how to promote and sell to their customers, this type of management has a powerful influence on the outcome of an organization's sales.
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