Many business owners know the value of data, even if they can’t put a number on it. Data—whether it’s about what customers are purchasing, how they are shopping, or what they’re talking about on social media—is valuable. It can help to shape what a company produces or markets.
Data should play a big role in every marketing decision a company makes, especially when every advertising dollar counts. Data-driven marketing creates an opportunity for each marketing campaign to deliver a higher return on investment (ROI).
Why does data marketing matter so much? Marketing, in general, has changed over the last decade. It’s no longer good enough to have a great idea, as old advertising agencies counted on. A hunch or a gut feeling just isn’t enough to help make big waves in sales. However, by applying all of the data that’s out there to create a strategy, it’s possible to produce much more relevant, effective, and valuable marketing campaigns.
It’s hard to believe that data can make this big of a difference. Yet, it’s been proven time and time again over the years. See for yourself by learning more about how you can leverage data-driven marketing in this guide.
What is Data-Driven Marketing?
The big question many have is, “what is data-driven marketing?”. The short answer is it’s a form of marketing that relies on customer information or data to establish a marketing campaign. By using customer data, it is possible to predict the needs of customers as well as their desires and the types of behaviors they’re likely to engage in, including what they may purchase. By tapping into data, it’s possible to create more personalized marketing strategies that achieve the highest level of ROI.
A good way to understand how data-driven marketing works is by considering how it differs from traditional methods. Traditionally, marketing has two goals. The first is to determine what a customer’s needs are. Then, marketing uses that information to deliver what the customer needs in the best manner possible.